SECTIONS 12250-12256 - California Statutes

INSURANCE CODE

SECTION 12250-12256

12250. A service contract shall not be executed, issued or
delivered in this State until the form thereof is approved in writing
by the commissioner.

12251. Every service contract executed, issued or delivered in this
State shall be made in duplicate and shall be dated and signed by
the motor club issuing it. Such contract shall be countersigned by a
duly authorized agent of the club, and by the party purchasing the
contract. One copy of the contract shall be kept by the club and the
other copy shall be delivered to the purchasing party.

12252. A service contract shall not be executed, issued or
delivered in this State unless it contains the following:
(a) The exact corporate or other name of the club.
(b) The exact location of its home office and of its usual place
of business in this State, giving street number and city.
(c) A provision that the contract may be canceled at any time by
either the club or the holder, and that the holder will, if he has
actually paid the consideration, thereupon be entitled to the unused
portion of the consideration paid for such contract, calculated on a
pro rata basis over the period of the contract, without any
deductions.
(d) A provision plainly specifying:
(1) The services promised.
(2) That the holder will not be required to pay any sum, in
addition to the amount specified in the contract, for any services
thus specified.
(3) The territory wherein such services are to be rendered.
(4) The date when such service will commence.
(e) A statement in not less than fourteen point modern type at the
head of said contract stating, "This is not an insurance contract."

12253. A person shall not solicit or aid in the solicitation of
another person to purchase a service contract issued by a club not
having a certificate of authority procured pursuant to this part.

12254. A club or an officer or agent thereof shall not in any
manner misrepresent the terms, benefits or privileges of any service
contract issued or to be issued by it.

12255. Any service contract made, issued or delivered contrary to
any provision of this part shall nevertheless be valid and binding on
the club.

12256. Any motor club may elect not to execute, issue, or deliver
service contracts in this state. A club may distribute brochures,
prospectuses, or advertisements which are not contracts. Such
materials may be issued or delivered without prior approval of the
commissioner.
If a club does not use service contracts it shall execute, issue,
and deliver membership cards, tokens, or other indicia of membership
to its members.