Section § 12140

Explanation

This section outlines who is not subject to certain insurance regulations. It does not apply to: (a) attorneys doing their usual work, (b) admitted insurance companies, (c) motor carrier associations, (d) those involved in specific service sales related to Sections 12148, 12152, or 12153, as long as they don't deal with other services, (e) licensed vehicle service contract providers offering specific services defined in another law, (f) providers of certain services defined in additional regulation, and (g) agreements for routine maintenance.

This part shall not apply to any of the following:
(a)CA Insurance Code § 12140(a) A duly authorized attorney at law acting in the usual course of his profession.
(b)CA Insurance Code § 12140(b) An admitted insurer.
(c)CA Insurance Code § 12140(c) An association of motor carriers.
(d)CA Insurance Code § 12140(d) A person who is directly or indirectly engaged, either as principal or agent, in selling or offering for sale, furnishing, or procuring any of the services described in Section 12148, 12152, or 12153, or miscellaneous service that augments or is incidental to any of those services, but who is not directly or indirectly engaged, either as principal or agent, in selling or offering for sale, furnishing, or procuring any other service described in this chapter.
(e)CA Insurance Code § 12140(e) A person who is licensed as a vehicle service contract provider and offering any of the services described in paragraphs (1) to (4), inclusive, of subdivision (c) of Section 12800, to the extent that person is providing the services described therein.
(f)CA Insurance Code § 12140(f) A person offering the services described in paragraph (7) of subdivision (a) of Section 12805 to the extent that person is providing the services described therein.
(g)CA Insurance Code § 12140(g) An agreement that promises routine maintenance.

Section § 12141

Explanation

This law section states that the terms in this chapter have specific meanings that apply only in this context. These definitions shouldn't be assumed to apply to other sections of the code just because they are defined here.

Except where the context otherwise requires, the terms used in this part shall be given the meanings set forth in this chapter, but such meaning shall not, merely by reason of enactment in this chapter, govern the interpretation of any other provision of this code.

Section § 12142

Explanation

This law section defines what a motor club is. Essentially, a motor club is anyone involved in selling or providing motor club services, whether they do so directly or through agents. However, if a person only provides certain specified services (mentioned in other sections), and not a broad range of motor club services, they are not considered a motor club.

(a)CA Insurance Code § 12142(a) Except as provided in subdivision (b), a motor club is a person, directly or indirectly engaged, either as principal or agent, in selling or offering for sale, furnishing or procuring motor club service.
(b)CA Insurance Code § 12142(b) A person who is directly or indirectly engaged, either as principal or agent, in selling or offering for sale, furnishing, or procuring any of the services described in Section 12148, 12152, or 12153, or miscellaneous service that augments or is incidental to any of those services, but who is not directly or indirectly engaged, either as principal or agent, in selling or offering for sale, furnishing, or procuring any other service described in this chapter, is not a motor club.

Section § 12142.5

Explanation

This law requires the commissioner to create rules that outline what kinds of extra services are allowed under certain parts of the insurance regulations. These rules must follow a specific process for being made, changed, or removed, as detailed in another set of government rules.

The commissioner shall adopt reasonable rules and regulations specifying the types of miscellaneous service permitted under subdivision (d) of Section 12140 and subdivision (b) of Section 12142. The rules and regulations shall be adopted, amended, and repealed in accordance with the procedure provided in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

Section § 12143

Explanation

This law defines a club agent as anyone who isn't the motor club but still helps with selling, delivering, or negotiating membership or service contracts for the club, including renewals.

A club agent is a person other than the motor club itself, who acts or aids in any manner in the solicitation, delivery, or negotiation of any membership or service contract, or of the renewal or continuance thereof.

Section § 12144

Explanation

This law defines what motor club services are and the types of agreements people can have with these clubs. It means offering or being part of services for vehicle-related needs, like use and maintenance, as a club member or through any affiliation or agreement with the club. But it makes clear that these services can't be handled like insurance. The commissioner can make rules on what counts as insurance to ensure compliance, following government procedures for making regulations.

Motor club service is the rendering or procuring of, or reimbursement for, any of the services defined in this chapter to any person in connection with the ownership, operation, use, or maintenance of a motor vehicle, including a vacation trailer, house or otherwise, or a boat capable of ordinary transportation on a trailer and its trailer, by the person upon any of the following considerations:
(a)CA Insurance Code § 12144(a) The person is or will become a member of the club rendering or furnishing the service.
(b)CA Insurance Code § 12144(b) The person is or will become in any manner affiliated with the club.
(c)CA Insurance Code § 12144(c) The person is or will become entitled to receive membership or other motor club service from the club by virtue of any agreement or understanding with any club.
This section shall not authorize a motor club to furnish any service on a reimbursement basis that constitutes the transaction of insurance. The commissioner may make reasonable rules and regulations specifying services that constitute the transaction of insurance for the purposes of this part and which may not be offered on a reimbursement basis. Rules and regulations shall be adopted, amended, and repealed in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

Section § 12145

Explanation

This law section defines towing service as when a motor club moves a vehicle from one location to another using a power source other than the vehicle's own.

Towing service is the drafting or moving by a motor club of a motor vehicle from one place to another under other power than its own.

Section § 12146

Explanation

This law section defines 'emergency road service' as the service provided by a motor club to fix, adjust, or replace parts of a car, like tires or equipment, so that the car can be driven on its own again.

Emergency road service is the adjustment, repair or replacement by a motor club of the equipment, tires or mechanical parts of a motor vehicle so as to permit it to be operated under its own power.

Section § 12148

Explanation

This law explains that a motor club can offer special discounts or price reductions on things like gasoline, oil, car repairs, insurance, parts, and vehicle services to people who have service contracts with the club.

Discount service is an arrangement by a motor club resulting in giving special discounts, rebates or reductions of price on gasoline, oil, repairs, insurance, parts, accessories or service for motor vehicles to holders of service contracts with any such club.

Section § 12149

Explanation

This section explains that a 'financial service' refers to an agreement offered by a motor club. In this setup, the club provides loans or money advances to those who have service contracts with the club.

Financial service is an arrangement by a motor club whereby loans or other advances of money are made to holders of service contracts with any such club.

Section § 12150

Explanation

This law describes a service provided by motor clubs to assist members in buying or selling cars. If the motor club refers members to a car dealer and receives a fee, advertisements must clearly state that the dealer paid the club and include a disclaimer that car purchases depend on availability and prearranged pricing. The statement must be prominently displayed in the ad. However, this rule doesn't apply to general ads that only mention the motor club offers car buying services without details.

(a)CA Insurance Code § 12150(a) Buying and selling service is an arrangement by a motor club whereby the holder of a service contract with a motor club is aided in any way in the purchase or sale of an automobile.
(b)Copy CA Insurance Code § 12150(b)
(1)Copy CA Insurance Code § 12150(b)(1) If a motor club offers a service that refers members to a new motor vehicle dealer for the purchase of a new motor vehicle, and the dealer pays the motor club any compensation, including, but not limited to, an advertising, promotional, or marketing fee, any advertisement of that service shall clearly and conspicuously disclose that the dealer has paid the fee and shall have the following statement: “All new cars arranged for sale are subject to availability and a price prearranged with the selling franchised new car dealer.”
(2)CA Insurance Code § 12150(b)(2) In a printed advertisement, the disclosures required by paragraph (1) shall be in not less than 10-point bold type and shall be textually segregated from the other portions of the advertisement.
(3)CA Insurance Code § 12150(b)(3) The disclosures required by paragraph (1) do not apply to general advertisements of a motor club that merely list an auto buying service as one of several services offered by the motor club and that do not provide any details of the auto buying service.

Section § 12151

Explanation

This law describes a service offered by motor clubs to find, identify, or recover stolen or missing vehicles. It also includes efforts to catch the person responsible for the theft, as long as the vehicle owner has a contract with the club.

Theft service is an act by a motor club for the purpose of locating, identifying or recovering a stolen or missing motor vehicle owned or controlled by the holder of a service contract with any such club or for the purpose of detecting or apprehending the person guilty of the theft.

Section § 12152

Explanation

This law section explains that if you have a service contract with a motor club, you'll get road maps for free as part of the services they provide.

Map service is the furnishing by a motor club of road maps without cost to holders of service contracts with any such club.

Section § 12153

Explanation

This section defines 'travel service' as the assistance provided by a motor club to travelers. It includes offering road maps, travel guides, and accommodations directories, as well as arranging travel tickets and reservations.

Travel service is the furnishing by a motor club of touring and travel aids and assistance, and may include any or all of the following:
(a)CA Insurance Code § 12153(a) Road maps, touring guides, directories of accommodations for travelers, club periodicals, travel information, magazines, and brochures.
(b)CA Insurance Code § 12153(b) Procuring travel tickets of all kinds and reservations for accommodations in connections therewith.

Section § 12154

Explanation

This law section explains that a motor club can offer claim adjustment services to help settle claims for individuals who have a service contract with the club. These claims must arise from accidents involving a motor vehicle and can relate to injuries or damages to people or property.

Claim adjustment service is an act by a motor club for the purpose of adjusting claims on behalf of the holder of a service contract with any such club, when such claim results from injury or damage to person or property arising out of an accident, in connection with the ownership, maintenance, operation and use of a motor vehicle.

Section § 12155

Explanation

This law explains that a motor club can help people with three specific services: getting their car registered with the state, obtaining a driver's license, and transferring vehicle ownership records at the Department of Motor Vehicles.

License service is the rendering of assistance by a motor club to any person in obtaining:
(a)CA Insurance Code § 12155(a) Registration of a motor vehicle with the State.
(b)CA Insurance Code § 12155(b) A driver’s license.
(c)CA Insurance Code § 12155(c) A transfer of legal or registered ownership upon the records of the Department of Motor Vehicles.

Section § 12156

Explanation

This law explains that insurance service involves providing insurance policies through a motor club. These policies cover accidents that cause injury or damage due to owning, maintaining, or using a vehicle. Additionally, the insurance can also cover a club member or their family for accidental injury or death unrelated to time loss, as part of a service contract or club membership. The motor club is recognized as an association for these purposes.

Insurance service is the selling or giving, with a service contract or as a result of membership in or affiliation with a motor club, of a policy of insurance covering liability or loss by the holder resulting from injury or damage to person or property arising out of an accident, such liability or loss being the consequence of the ownership, maintenance, operation, or use of a motor vehicle.
Insurance service also includes the selling or giving with a service contract or as a result of membership in or affiliation with a motor club, of a policy of insurance, or a certificate under a master policy in which the club is the master policyholder, covering the club member, or any member of his family, for loss, other than loss of time, from accidental injury from any cause or accidental death from any cause. For such purpose any certificated motor club is deemed to be an “association” within the meaning of Section 10270.5 and the club members and members of their families are deemed to be members of such association.

Section § 12157

Explanation

This law states that if a motor club begins to provide a service described in this chapter, it counts as having provided that service, regardless of whether the service is fully completed.

Any act by a motor club for the purpose of rendering a service defined in this chapter constitutes such service, whether or not the service as defined is completed.

Section § 12158

Explanation

This law defines a service contract as a written agreement where one person agrees, for payment, to provide motor club services, which could include anything like roadside assistance, to someone else.

A service contract is a written agreement whereby any person promises for a consideration to render, furnish or procure motor club service for any other person.

Section § 12159

Explanation

This section defines 'miscellaneous service' as any extra service provided by a club that enhances or supports other authorized services offered by the club. These services should help the club's members and must be practical for the club to offer.

Miscellaneous service means any other service which may be furnished and which augments or is incidental to any service performed by the club as authorized under the provisions of this chapter or any other service which is of assistance and is beneficial to its members and is feasible for the club to render.