M.G.L. c. 174B, § 1 Title of chapter
c. 174B, § 1. Title of chapter
Section 1. This chapter shall be known and may be cited as the ''Automobile Club Services Act''.
REGULATION OF AUTOMOBILE CLUBS
M.G.L. pt. Part I, tit. Title XXII, ch. c. 174B
in effectM.G.L. c. 174B, § 2 Definitions
c. 174B, § 2. Definitions
Section 2. In this chapter, unless otherwise expressly provided or the context otherwise provides, the following words and phrases shall have the following meanings:
''Automobile Club'', any person who in consideration of dues, assessments, or periodic payments of money, promises its members or subscribers to assist them in matters relating to travel and the operation, the use and maintenance of a motor vehicle and the supplying of services which, by way of illustration and not by way of limitation, may include such services as community traffic safety service, travel and touring service, theft or reward service, map service, towing service, emergency road service, bail bond service, legal fee reimbursement service in the defense of traffic offenses, and the participation in an accident and sickness or death insurance benefit program.
''Person'', any person, firm, partnership, corporation or association which conducts an automobile club service business within the commonwealth.
''Commissioner'', the commissioner of insurance.
''Club agent'', any person other than the automobile club itself, who acts or aids in any manner in the solicitation, delivery or negotiation of any service contract or of the renewal or continuance thereof; provided, however, that any person performing only work of a clerical nature in the office of the automobile club shall not be deemed to be a club agent.
''Service contract'', any agreement whereby an automobile club, for a consideration, promises to render, furnish or procure specified services, procure or to reimburse club members therefor.
M.G.L. c. 174B, § 3 Bail bond and insurance coverage or benefits
c. 174B, § 3. Bail bond and insurance coverage or benefits
Section 3. Automobile clubs furnishing bail bond service and accident and sickness or death insurance benefits to its members shall purchase such insurance from a company licensed and authorized to sell such coverages in the commonwealth.
M.G.L. c. 174B, § 4 Licensing; fee
c. 174B, § 4. Licensing; fee
Section 4. An automobile club which offers its members any of the services referred to in section two shall not render any automobile club service prior to being licensed by the commissioner. The annual license fee payable to the commonwealth shall be determined annually by the commissioner of administration under the provision of section three B of chapter seven.
M.G.L. c. 174B, § 5 Service of process; appointment of commissioner as attorney
c. 174B, § 5. Service of process; appointment of commissioner as attorney
Section 5. An automobile club licensed by the commissioner shall file a statement appointing the commissioner its attorney for the service of process.
M.G.L. c. 174B, § 6 Bond or financial responsibility; filing
c. 174B, § 6. Bond or financial responsibility; filing
Section 6. An automobile club licensed pursuant to this chapter shall file a bond in the amount of one hundred thousand dollars with the state treasurer or shall file evidence of financial responsibility satisfactory to said treasurer.
M.G.L. c. 174B, § 7 Annual statement of financial condition; filing; requisites; failure to file, suspension or revocation of license
c. 174B, § 7. Annual statement of financial condition; filing; requisites; failure to file, suspension or revocation of license
Section 7. An automobile club shall, with its application for original license, and annually before April first, file with the commissioner a true statement of its financial condition, transactions, and its affairs as of December thirty-first preceding. The statement shall contain such information as may be reasonably required by the commissioner, and shall be verified by the oaths of at least two of the automobile club's principal officers and the statement of financial condition shall be certified by a registered or certified public accountant within the previous six months, as presenting fairly, in accordance with generally accepted accounting principles, the financial position of the automobile club. The commissioner may suspend or revoke the license of any automobile club failing to file its annual statement when due or during any extension of time which the commissioner for good cause may grant.
M.G.L. c. 174B, § 7A Examination of affairs; confidentiality and privilege
c. 174B, § 7A. Examination of affairs; confidentiality and privilege
Section 7A. The commissioner or any other person designated by the commissioner shall, at least once in 5 years and whenever the commissioner considers it prudent, visit any automobile club and examine into its affairs. The commissioner shall have free access to all of the books, records and papers of the automobile club and may summon and examine under oath its officers, agents, employees and other persons in relation to its affairs and condition. The commissioner shall require every automobile club to keep its books, records, accounts and vouchers in such a manner that the commissioner's authorized representatives may readily verify its annual statements and determine whether the automobile club has complied with the law.
Notwithstanding any other provision of the General Laws, including clause Twenty-sixth of section 7 of chapter 4 and chapter 66, documents, materials or other information, including but not limited to, all working papers and copies thereof created, produced or obtained by or disclosed to the commissioner or any other person in the course of an examination made pursuant to this section or in the course of analysis by the commissioner of the financial condition or market conduct of an automobile club shall be confidential by law and privileged, shall not be a public record under said clause Twenty-sixth, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner may use the documents, materials or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties.
Documents, materials or other information, including but not limited to, all working papers and copies thereof in the possession or control of the National Association of Insurance Commissioners and its affiliates and subsidiaries shall be confidential by law and privileged, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action if they are:
(i) created, produced, obtained by or disclosed to the National Association of Insurance Commissioners and its affiliates and subsidiaries in the course of the National Association of Insurance Commissioners and its affiliates and subsidiaries assisting an examination made pursuant to this section or assisting the commissioner in the analysis of the financial condition or market conduct of an automobile club; or
(ii) disclosed to the National Association of Insurance Commissioners and its affiliates and subsidiaries pursuant to this section by any member of the National Association of Insurance Commissioners.
Neither the commissioner nor any person who received the documents, material or other information while acting under the authority of the commissioner, including the National Association of Insurance Commissioners and its affiliates and subsidiaries, shall be permitted to testify in any private civil action concerning any confidential documents, materials or information subject to this section.
In order to assist in the performance of the commissioner's duties, the commissioner:
(i) may share documents, materials or other information, including the confidential and privileged documents, materials or information subject to this section with other state, federal and international regulatory agencies, the National Association of Insurance Commissioners and its affiliates and subsidiaries and state, federal and international law enforcement authorities provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication or other information;
(ii) may receive documents, materials, communications or information, including otherwise confidential and privileged documents, materials or information, from the National Association of Insurance Commissioners and its affiliates and subsidiaries and regulatory and law enforcement officials of other foreign or domestic jurisdictions and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and
(iii) may enter into agreements governing sharing and use of information consistent with this section.
No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in this section.
A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this subsection shall be available and enforced in any proceeding in and in any court of the commonwealth.
M.G.L. c. 174B, § 8 Refusal, suspension or revocation of license; grounds
c. 174B, § 8. Refusal, suspension or revocation of license; grounds
Section 8. A license may be refused, or a license duly issued may be suspended or revoked, or the renewal thereof refused by the commissioner if, after notice and hearings he finds that the applicant for, or holder of, such license:
(a) has violated any provision of this chapter; or
(b) is in such financial condition that its further transaction of automobile club service in the commonwealth would be hazardous to its members and the automobile-club-service-buying public in the commonwealth, is insolvent; or
(c) has refused or refuses to remove or discharge, or terminate its relationship with a director or officer who has been convicted of any crime involving fraud or dishonesty; or
(d) customarily, or in the regular course of business, compels claimants under its service contract either to accept less than the amount due them or fewer services or compels them to bring suit in order to secure full payment of the amount or all of the services due to said claimants; or
(e) conducts its business outside this commonwealth in such a manner as unjustly to discriminate against or prejudice the interests of the people of this commonwealth; or
(f) is affiliated with and is under the same general management or interlocking directorate or ownership as another automobile club which transacts business in this commonwealth which does not have a certificate of authority therefor; or
(g) has exceeded, or exceeds, its charter powers; or
(h) has refused, or refuses, to be examined, or if its directors, managing officers, employees or representatives refuse to submit to examination by the commissioner when required by the commissioner, or refuse to perform any legal obligation relative to such examination; or
(i) maintains, through its employees, a policy of misrepresenting to the public its service contracts; or
(j) fails to issue service contracts to its members.
M.G.L. c. 174B, § 9 Service contracts; form; contents
c. 174B, § 9. Service contracts; form; contents
Section 9. No service contract shall be executed, issued or delivered in this commonwealth until the form thereof has been filed with the commissioner. The service contract may be in the form of a written agreement between the automobile club and the member or it may consist of a completed application, a membership card and a written description of services to be rendered by the automobile club. No service contract shall 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 location of its home office and its usual place of business in the commonwealth, if any, giving street number and city.
(c) A provision that the contract may be cancelled at any time by given written notice thereof by either the club or the holder, and that the holder will, if the dues or membership fee has been paid thereupon, be entitled to a refund of 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; provided that automobile club may make a reasonable minimum charge.
(d) A provision plainly specifying the services promised, 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, the territory wherein such services are to be rendered, the effective date of the contract and the first renewal date.
(e) A statement on the first page of the service contract in not less than fourteen point type stating, ''This is not an automobile liability insurance contract''.
M.G.L. c. 174B, § 10 Club agents; notice of employment or termination; applications, requisites; registration fee
c. 174B, § 10. Club agents; notice of employment or termination; applications, requisites; registration fee
Section 10. Every automobile club licensed by the commissioner shall, within thirty days of the date of employment of a club agent to sell memberships in the automobile club to the public, file with the commissioner a notice of such employment. Such notice shall have attached thereto an application completed by the club agent and verified by him and shall contain the name, address, age, sex and social security number of such club agent, and also contain proof satisfactory to the commissioner that such applicant is of good reputation and that he has received training from the club or is otherwise qualified in the field of automobile club service contracts, and the laws of this commonwealth pertaining thereto. Upon termination of any club agent's employment by an automobile club, the automobile club shall within thirty days thereafter notify the commissioner of such termination. Notifications and applications shall be upon such forms as the commissioner may prescribe. The registration fee for club agents shall be determined annually by the commissioner of administration under the provision of section three B of chapter seven and such registration shall be renewable on April first of each year unless sooner revoked or suspended.
M.G.L. c. 174B, § 11 Suspension, revocation or refusal of club agent's registration; grounds
c. 174B, § 11. Suspension, revocation or refusal of club agent's registration; grounds
Section 11. The commissioner may suspend, revoke or refuse to renew any club agent's registration, if he finds that the club agent:
(a) has violated any of the provisions of this chapter;
(b) has misappropriated or converted to his own use or has illegally withheld monies required to be held in a fiduciary capacity;
(c) has materially misrepresented the terms or effects of any contract or has engaged in any fraudulent transaction;
(d) has shown himself to be incompetent, untrustworthy or a source of injury and loss to the automobile-club-service-buying public;
(e) has been convicted of a crime involving fraud or dishonesty.
Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter174BFetched: 10/20/2026