Insurance (GIN) — Title 26. Motor Clubs
Statutes in effect as of October 1, 2026.
Subtitle 1. Definitions; General Provisions
Md. Code Ann., Ins. § 26-101 (2026)
Title 26. Motor Clubs
Subtitle 1. Definitions; General Provisions
§ 26–101LinkCopy Citation
(a)
In this title the following words have the meanings indicated.
(b)
“Emergency road service” means the adjustment, repair, or replacement of the equipment, tires, or mechanical parts of a motor vehicle so that the motor vehicle may be operated under its own power.
(c)
“License” means a license issued by the Commissioner to provide motor club service.
(d)
“Licensee” means a motor club that is licensed by the Commissioner to provide motor club service.
(e)
“Member” means a member or subscriber of a motor club.
(f)
“Motor club” means a person engaged directly or indirectly in selling or offering for sale, furnishing, or procuring motor club service.
(g)
“Motor club service” means, in connection with the ownership, operation, use, or maintenance of a motor vehicle by a person, and in consideration of the person being or becoming a member of a motor club, affiliated with a motor club, or entitled to receive membership or other service from a motor club because of an agreement between the person and the motor club, the rendering, furnishing, or procuring of or the payment or reimbursement for, wholly or partly, any or all of the following services to the person:
(1)
emergency road service, including the replacement of a motor vehicle key or key fob if the key or key fob becomes inoperable or is lost or stolen;
(2)
bail bond service, which is the furnishing of or arranging for a cash deposit, bond, or other form of security required by law for a member accused of a violation of a motor vehicle law or traffic ordinance, to obtain the member’s release from custody pending trial;
(3)
financing service, which is the arranging for a loan or other advance of money to a member in connection with providing any other motor club service;
(4)
insurance service, which is the furnishing of coverage to a member under an approved group or blanket policy, subject to the limitations of this article, issued to the motor club by an authorized insurer;
(5)
legal reimbursement service, which is the payment for or reimbursement of a member of fees charged by an attorney for services rendered to the member in defense of a traffic offense;
(6)
theft service, which is the offering of assistance in locating, identifying, or recovering a stolen or missing motor vehicle owned by a member, or the offering of a reward for the purpose of detecting or apprehending the person guilty of the theft; and
(7)
towing service, which is the furnishing to a member of the means to move a motor vehicle, under power other than its own, from one place to another.
(h)
“Representative” means an individual who, for compensation, solicits or sells memberships, subscriptions, or franchises for a motor club.
Md. Code Ann., Ins. § 26-102 (2026)
Title 26. Motor Clubs
Subtitle 1. Definitions; General Provisions
§ 26–102LinkCopy Citation
(a)
(1)
The offering of motor club service is regulated under this title but is not engaging in insurance business.
(2)
This title does not otherwise exempt a licensee or its representatives from the requirements of the laws relating to insurance or insurance services.
(b)
This title does not apply to:
(1)
a motor vehicle manufacturer, distributor, or a wholly owned subsidiary of a manufacturer or distributor, as those terms are defined in § 15–201 of the Transportation Article, that offers for sale, furnishes, or procures emergency road service, towing service, or other service that may be offered by a licensed motor club under this title as part of a mechanical repair contract as defined in § 15–311.2 of the Transportation Article; or
(2)
a licensed vehicle dealer or any person that offers for sale, furnishes, or procures emergency road service, towing service, or other service that may be offered by a licensed motor club under this title as part of a mechanical repair contract if the provider of services maintains adequate insurance reserves as defined by the Commissioner and the mechanical repair contract is offered in compliance with § 15–311.2 of the Transportation Article.
(c)
This title does not limit or prohibit a motor club from selling, offering for sale, or furnishing to or procuring for members services or products not defined in this title.
Md. Code Ann., Ins. § 26-103 (2026)
Title 26. Motor Clubs
Subtitle 1. Definitions; General Provisions
§ 26–103LinkCopy Citation
(a)
The Commissioner may conduct investigations and examine the books, records, and accounts of a person at the person’s expense under this title to the same extent as is authorized with respect to insurers under this article.
(b)
The Commissioner may:
(1)
investigate possible violations of this title and subpoena persons and documents that the Commissioner considers appropriate in connection with the investigation;
(2)
require a licensee to stop doing business through a particular representative on finding, after notice and opportunity for a hearing, that the representative has intentionally or negligently made false or misleading statements about the services offered by the licensee; and
(3)
adopt regulations to administer, carry out, or enforce this title.
(c)
(1)
The Commissioner may approve or disapprove the name, trademarks, emblems, and forms that an applicant or licensee uses or proposes to use in connection with its business.
(2)
The Commissioner shall approve a name, trademark, or emblem if the name, trademark, or emblem:
(i)
is distinctive;
(ii)
is not similar to or in conflict with the name, trademark, or emblem of a local organization or a nationally registered or copyrighted name, trademark, or emblem;
(iii)
is not likely to confuse or mislead the public about the nature or identity of the applicant or licensee using or proposing to use the name, trademark, or emblem; and
(iv)
will not interfere with the transactions of a licensee already operating in the State.
(3)
The Commissioner may disapprove the use of, and order that the licensee stop using, a name, trademark, or emblem not approved under paragraph (2) of this subsection.
Subtitle 2. Licenses
Md. Code Ann., Ins. § 26-201 (2026)
Title 26. Motor Clubs
Subtitle 2. Licenses
§ 26–201LinkCopy Citation
Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not provide motor club service or engage in the business of a motor club in the State unless the person meets the requirements of this title and has a license issued by the Commissioner.
Md. Code Ann., Ins. § 26-202 (2026)
Title 26. Motor Clubs
Subtitle 2. Licenses
§ 26–202LinkCopy Citation
(a)
To qualify for a license to engage in the business of a motor club, a motor club with capital stock must have and maintain:
(1)
paid-in capital stock with a fixed nominal or par value in an amount not less than $5,000; and
(2)
surplus in an amount not less than $10,000.
(b)
A motor club formed under the laws of the State without paid-in capital stock shall have and maintain unencumbered assets, in addition to required reserves and other liabilities, in an amount equal to that required under subsection (a) of this section.
Md. Code Ann., Ins. § 26-203 (2026)
Title 26. Motor Clubs
Subtitle 2. Licenses
§ 26–203LinkCopy Citation
(a)
An applicant for an initial license shall:
(1)
file with the Commissioner an application on the form that the Commissioner provides; and
(2)
pay to the Commissioner an application fee of $200.
(b)
(1)
An applicant for a license shall submit to the Commissioner the information that the Commissioner considers reasonably necessary to determine, in accordance with this title, whether to issue a license to the applicant.
(2)
The application shall be executed under oath by the applicant or, if the applicant is not an individual, by an authorized officer of the applicant.
(c)
The application shall include:
(1)
if the applicant is a corporation:
(i)
a certificate of good standing from the Department of Assessments and Taxation;
(ii)
the names and addresses of the officers and directors of the corporation; and
(iii)
the names and addresses of each owner of more than 10% of the capital stock of the corporation issued and outstanding;
(2)
if the applicant is not a corporation:
(i)
a list of all the owners of interests in the applicant;
(ii)
a list of the officers of the applicant; and
(iii)
a list of the parties to any operating or management agreement that affects the applicant, together with a copy of the agreement;
(3)
a financial statement certified by a certified public accountant within the previous 6 months, that presents fairly, in accordance with generally accepted accounting principles, the financial position of the applicant and contains the information that the Commissioner requires;
(4)
a copy of the applicant’s service contract and the fees to be charged to members, as described in § 26–402 of this title; and
(5)
evidence of security in accordance with § 26–204 of this subtitle.
Md. Code Ann., Ins. § 26-204 (2026)
Title 26. Motor Clubs
Subtitle 2. Licenses
§ 26–204LinkCopy Citation
(a)
An applicant for a license shall deposit with the Treasurer, who shall maintain in trust:
(1)
registered United States government bonds with a market value at all times not less than $100,000 or, in the discretion of the Commissioner, a lower amount not less than $15,000;
(2)
a corporate surety bond in the form that the Commissioner requires in a penal sum not less than $100,000 or, in the discretion of the Commissioner, a lower amount not less than $15,000; or
(3)
a letter of credit in the form that the Commissioner requires in an amount not less than $100,000 or, in the discretion of the Commissioner, a lower amount not less than $15,000.
(b)
(1)
The bond or letter of credit described under subsection (a)(2) or (3) of this section shall be:
(i)
in favor of the State for the members of the applicant that reside in the State;
(ii)
issued by a surety insurer or bank authorized to do business in the State; and
(iii)
conditioned on the faithful performance by the applicant of its obligations under this title, including payment of any fines, fees, or penalties imposed on it or restitution ordered under this title.
(2)
The total liability of the surety insurer under the bond may not exceed the penal sum of the bond.
(3)
The total liability of the bank under the letter of credit may not exceed the amount of the letter of credit.
(4)
(i)
The surety insurer or bank may cancel the bond or letter of credit after notifying the Commissioner at least 30 days before the effective date of the cancellation.
(ii)
Neither the surety insurer nor the bank is liable for any breach of condition that occurs after the effective date of the cancellation.
(5)
The Commissioner may adopt regulations that specify conditions for surety bonds and letters of credit required by this section and provide methods for their termination.
(c)
(1)
The security required by subsection (a) of this section shall be maintained as long as the licensee has any outstanding liability or obligation in the State.
(2)
Subject to approval by the Commissioner, the licensee may substitute any type of security required by subsection (a) of this section for any other type of security required by subsection (a) of this section.
(3)
On proof satisfactory to the Commissioner that the licensee has stopped doing business and that all of the licensee’s liabilities and obligations have been satisfied, the Commissioner shall authorize the Treasurer to return the security to the licensee.
Md. Code Ann., Ins. § 26-205 (2026)
Title 26. Motor Clubs
Subtitle 2. Licenses
§ 26–205LinkCopy Citation
(a)
Within a reasonable time after an application for a license is filed, the Commissioner shall issue a license to the applicant unless:
(1)
the applicant has not met all of the requirements of this title;
(2)
in the judgment of the Commissioner, the applicant does not have sufficient financial responsibility to engage in the business of a motor club; or
(3)
the applicant has failed to make a reasonable showing that all of its owners, managers, officers, directors, or representatives are persons of reliability and integrity.
(b)
If the Commissioner disapproves the application for a license, the Commissioner shall notify the applicant as soon as practicable of the reason for the disapproval and inform the applicant of its right to a hearing on the matter as provided in § 26-209 of this subtitle.
(c)
If an application for a license filed under this subtitle is disapproved, the Commissioner shall:
(1)
retain $50 of the application fee paid by the applicant; and
(2)
return the balance of the application fee to the applicant.
Md. Code Ann., Ins. § 26-206 (2026)
Title 26. Motor Clubs
Subtitle 2. Licenses
§ 26–206LinkCopy Citation
(a)
A license expires on the first December 31 after its effective date unless it is renewed as provided in this section.
(b)
At least 1 month before a license expires, the Commissioner shall send to the licensee, at the last known address of the licensee or electronic mail address of the holder on record a notice that states:
(1)
the process for renewing the license;
(2)
the date by which the Commissioner must receive the renewal application; and
(3)
the amount of the renewal fee.
(c)
Before a license expires, the licensee may renew it for an additional 1–year term if the holder:
(1)
otherwise is entitled to a license;
(2)
files with the Commissioner a renewal application:
(i)
on the form that the Commissioner provides; or
(ii)
in an electronic format that the Commissioner approves;
(3)
files with the Commissioner the fees to be charged to members;
(4)
provides a financial statement as required under § 26–203(c)(3) of this subtitle; and
(5)
pays to the Commissioner a renewal fee of $100.
(d)
The Commissioner shall renew the license of each licensee that meets the requirements of this section.
Md. Code Ann., Ins. § 26-207 (2026)
Title 26. Motor Clubs
Subtitle 2. Licenses
§ 26–207LinkCopy Citation
(a)
(1)
Each licensee must appoint the Commissioner as attorney for service of process issued against the licensee under this title.
(2)
The appointment of the Commissioner must:
(i)
be in writing; and
(ii)
state that the licensee agrees that:
(1)
lawful process against the licensee that is served on the Commissioner, or in the Commissioner’s absence, on an employee in charge of the office of the Commissioner, has the same effect as if served on the licensee; and
(2)
the authority of the Commissioner to act as attorney for service of process continues in force as long as any liability remains outstanding against the licensee under this title in the State.
(3)
A certified certificate of the appointment shall be filed with the Commissioner.
(b)
(1)
When lawful process against a licensee under this title is served on the Commissioner, three copies of the process shall be furnished to the Commissioner.
(2)
The Commissioner immediately shall forward:
(i)
one copy of the process to the licensee by certified mail, return receipt requested; and
(ii)
one copy of the process to the resident agent or other similar official, if any, of the licensee in the State.
(c)
(1)
At the time of the service, the plaintiff shall pay to the Commissioner a fee of $2 for each service of process.
(2)
If the plaintiff prevails in the suit, the plaintiff may recover, as part of the taxable costs, any fee paid under this subsection.
Md. Code Ann., Ins. § 26-208 (2026)
Title 26. Motor Clubs
Subtitle 2. Licenses
§ 26–208LinkCopy Citation
After notice and opportunity for a hearing, the Commissioner may suspend or revoke a license if the Commissioner finds that the licensee:
(1)
has violated any provision of this title;
(2)
has failed to maintain the standards required under this title for the issuance of an initial license;
(3)
is insolvent;
(4)
has liabilities that exceed its assets;
(5)
has engaged in a fraudulent or deceptive act; or
(6)
has entered into a service contract the form of which has not been approved by the Commissioner.
Md. Code Ann., Ins. § 26-209 (2026)
Title 26. Motor Clubs
Subtitle 2. Licenses
§ 26–209LinkCopy Citation
(a)
An applicant for a license or a licensee is entitled to a hearing before the Commissioner if the application is denied or not acted on within a reasonable time or if the license is suspended or revoked.
(b)
An applicant or licensee that is adversely affected by an order of the Commissioner may seek judicial review of the order in accordance with § 2-215 of this article.
Subtitle 3. Representatives
Md. Code Ann., Ins. § 26-301 (2026)
Title 26. Motor Clubs
Subtitle 3. Representatives
§ 26–301LinkCopy Citation
(a)
Through its proper officer or agent, each licensee promptly shall notify the Commissioner of the name, title, and address of each individual the licensee desires to appoint as a representative in the State.
(b)
The notice required by this section shall be:
(1)
filed with the Commissioner on the form that the Commissioner provides; and
(2)
accompanied by:
(i)
an initial registration fee of $5; and
(ii)
a statement in writing, by the appointee, that gives:
(1)
the appointee’s name, age, residence address, business address, present occupation, and occupation for the 5 years immediately preceding the date of the notice;
(2)
the names of motor clubs represented during the 5 years immediately preceding the date of the notice and where represented; and
(3)
any other information the Commissioner requires.
Md. Code Ann., Ins. § 26-302 (2026)
Title 26. Motor Clubs
Subtitle 3. Representatives
§ 26–302LinkCopy Citation
The Commissioner shall issue a registration certificate to an appointee if it appears to the Commissioner that the appointee:
(1)
is a suitable and competent individual of good moral character;
(2)
intends to represent to the public in good faith that the appointee is a representative;
(3)
has not previously been denied registration or had a registration revoked under § 26-307 of this subtitle; and
(4)
otherwise meets the requirements of this subtitle.
Md. Code Ann., Ins. § 26-303 (2026)
Title 26. Motor Clubs
Subtitle 3. Representatives
§ 26–303LinkCopy Citation
A registration certificate shall state in substance that the individual named in the registration certificate is a registered representative of a licensee in the State.
Md. Code Ann., Ins. § 26-304 (2026)
Title 26. Motor Clubs
Subtitle 3. Representatives
§ 26–304LinkCopy Citation
While a representative’s registration remains in effect, a licensee is bound by the acts of the representative named in the registration certificate within the representative’s apparent or actual authority.
Md. Code Ann., Ins. § 26-305 (2026)
Title 26. Motor Clubs
Subtitle 3. Representatives
§ 26–305LinkCopy Citation
(a)
A registration expires on the first August 31 after its effective date unless it is renewed as provided in this section.
(b)
At least 1 month before a registration expires, the Commissioner shall send to the licensee, at the last known address of the licensee or electronic mail address of the licensee on record a notice that states:
(1)
the process for renewing the registration;
(2)
the date by which the Commissioner must receive the renewal application; and
(3)
the amount of the renewal fee.
(c)
Before a registration expires, the licensee may renew the registration of a representative for an additional 1–year term if:
(1)
the representative otherwise is entitled to a registration;
(2)
the licensee files with the Commissioner a renewal application:
(i)
on the form that the Commissioner provides; or
(ii)
in an electronic format that the Commissioner approves; and
(3)
the licensee pays to the Commissioner a registration renewal fee of $2.
(d)
The Commissioner shall renew the registration of a representative if the licensee and representative meet the requirements of this section.
Md. Code Ann., Ins. § 26-306 (2026)
Title 26. Motor Clubs
Subtitle 3. Representatives
§ 26–306LinkCopy Citation
If a licensee cancels a representative’s authority to act for the licensee, the licensee immediately shall provide written notice of the cancellation to the Commissioner.
Md. Code Ann., Ins. § 26-307 (2026)
Title 26. Motor Clubs
Subtitle 3. Representatives
§ 26–307LinkCopy Citation
(a)
Subject to subsection (c) of this section, the Commissioner shall deny a registration to an appointee or revoke the registration of a registered representative if the Commissioner, for cause and after a hearing, determines that the appointee or representative:
(1)
has made a false or misleading statement about the services offered by, or the business of, the licensee represented by the appointee or representative;
(2)
has been convicted of a crime involving moral turpitude; or
(3)
is otherwise unsuitable to act as a representative.
(b)
If the Commissioner denies or revokes a registration under this section, the Commissioner shall notify the licensee and the representative or appointee of the denial or revocation in writing.
(c)
The Commissioner need not deny or revoke a registration under this section if the Commissioner concludes, based on all the facts and circumstances, that the public interest would not be served by the denial or revocation.
Md. Code Ann., Ins. § 26-308 (2026)
Title 26. Motor Clubs
Subtitle 3. Representatives
§ 26–308LinkCopy Citation
A representative or appointee that is adversely affected by an order of the Commissioner may seek judicial review of the order in accordance with § 2-215 of this article.
Subtitle 4. Miscellaneous Provisions
Md. Code Ann., Ins. § 26-401 (2026)
Title 26. Motor Clubs
Subtitle 4. Miscellaneous Provisions
§ 26–401LinkCopy Citation
A motor club may not:
(1)
refer to its license or approval from the Commissioner or the State in any advertising, circular, contract, or membership card; or
(2)
advertise or describe its motor club service in a manner that would lead the public to believe that its motor club services include motor vehicle insurance.
Md. Code Ann., Ins. § 26-402 (2026)
Title 26. Motor Clubs
Subtitle 4. Miscellaneous Provisions
§ 26–402LinkCopy Citation
(a)
Each motor club shall provide to its members:
(1)
a service contract;
(2)
a membership card; and
(3)
the following information:
(i)
the exact name of the motor club;
(ii)
the street address of the motor club’s home office;
(iii)
the street address of the motor club’s principal place of business in the State;
(iv)
the telephone numbers of the motor club’s home and business offices; and
(v)
a description of the motor club services or benefits to which the member is entitled.
(b)
Unless a motor club provides and the Commissioner approves another form of service contract, the service contract consists of:
(1)
the completed application or renewal application of the motor club;
(2)
the filed fees to be charged to members of the motor club; and
(3)
the description of motor club services or benefits to which the members are entitled.
(c)
A service contract may not:
(1)
contain inconsistent, ambiguous, or misleading clauses, exceptions, or conditions that deceptively affect the risk purported to be assumed or the motor club service to be performed;
(2)
contain an inequitable provision that does not have a substantial benefit to the member;
(3)
require the payment of fees that are unreasonable in relation to the motor club service agreed to be performed; or
(4)
offer reimbursement only, unless the contract clearly states that emergency road service will not be provided.
Subtitle 5. Prohibited Acts; Penalties
Md. Code Ann., Ins. § 26-501 (2026)
Title 26. Motor Clubs
Subtitle 5. Prohibited Acts; Penalties
§ 26–501LinkCopy Citation
(a)
A person may not act as a representative of a licensee unless the person is registered under Subtitle 3 of this title.
(b)
A person may not sell, solicit, or act as a representative for an unlicensed motor club doing business in the State.
Md. Code Ann., Ins. § 26-501.1 (2026)
Title 26. Motor Clubs
Subtitle 5. Prohibited Acts; Penalties
§ 26–501.1LinkCopy Citation
(a)
This title does not apply to:
(1)
an authorized property and casualty insurer that provides emergency road service, towing service, or a similar type of indemnification under a policy that has been filed with and approved by the Commissioner; or
(2)
an obligor under a mechanical repair contract that provides emergency road service, towing service, or other service that may be offered by a licensed motor club under this title if the mechanical repair contract is offered in compliance with § 15–311.2 of the Transportation Article.
(b)
Unless a person holds a license issued by the Commissioner, the person may not represent to the public, by use of a title, including “motor club” or “licensed motor club”, by description of services, or otherwise, that the person is licensed or otherwise authorized to provide motor club service or engage in the business of a motor club in the State.
Md. Code Ann., Ins. § 26-502 (2026)
Title 26. Motor Clubs
Subtitle 5. Prohibited Acts; Penalties
§ 26–502LinkCopy Citation
(a)
A person that willfully violates this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year or both.
(b)
In addition to any other penalty provided in this title, the Commissioner after notice and hearing may impose on a licensee or representative for each violation of this title a penalty:
(1)
not exceeding $25,000 for a licensee; or
(2)
not exceeding $5,000 for a representative.
(c)
Instead of or in addition to a penalty imposed under this section, the Commissioner may require that restitution be made to any citizen who has suffered financial injury because of a violation of this title.