SECTIONS 12140-12159 - California Statutes

INSURANCE CODE

SECTION 12140-12159

12140. This part shall not apply to any of the following:
(a) A duly authorized attorney at law acting in the usual course
of his profession.
(b) Any admitted insurer.
(c) Any association of motor carriers.
(d) Any 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.

12141. 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.

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) 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.

12142.5. 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repealed in accordance with the procedure provided in Chapter 3.5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.

12143. 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.

12144. 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) The person is or will become a member of the club rendering or
furnishing the service.
(b) The person is or will become in any manner affiliated with the
club.
(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.

12145. 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.

12146. 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.

12147. Bail bond service is the furnishing or procuring by a motor
club of a cash deposit or undertaking required by law in order that a
person accused of violation of any law may enjoy personal freedom
pending trial.

12148. 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.

12149. 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.

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) (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) 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) 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.

12151. 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.

12152. Map service is the furnishing by a motor club of road maps
without cost to holders of service contracts with any such club.

12153. 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) Road maps, touring guides, directories of accommodations for
travelers, club periodicals, travel information, magazines, and
brochures.
(b) Procuring travel tickets of all kinds and reservations for
accommodations in connections therewith.

12154. 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.

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

12156. 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.

12157. 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.

12158. 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.

12159. 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.