<section article="gin" article_name="Insurance" number="26-101" title_number="26" title_name="Motor Clubs" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“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.</text> </level> <level label="c"> <text>“License” means a license issued by the Commissioner to provide motor club service.</text> </level> <level label="d"> <text>“Licensee” means a motor club that is licensed by the Commissioner to provide motor club service.</text> </level> <level label="e"> <text>“Member” means a member or subscriber of a motor club.</text> </level> <level label="f"> <text>“Motor club” means a person engaged directly or indirectly in selling or offering for sale, furnishing, or procuring motor club service.</text> </level> <level label="g"> <text>“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:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>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;</text> </level> <level label="5"> <text>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;</text> </level> <level label="6"> <text>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</text> </level> <level label="7"> <text>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.</text> </level> </level> <level label="h"> <text>“Representative” means an individual who, for compensation, solicits or sells memberships, subscriptions, or franchises for a motor club.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-102" title_number="26" title_name="Motor Clubs" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>The offering of motor club service is regulated under this title but is not engaging in insurance business.</text> </level> <level label="2"> <text>This title does not otherwise exempt a licensee or its representatives from the requirements of the laws relating to insurance or insurance services.</text> </level> </level> <level label="b"> <text>This title does not apply to:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-103" title_number="26" title_name="Motor Clubs" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>The Commissioner may:</text> <level label="1"> <text>investigate possible violations of this title and subpoena persons and documents that the Commissioner considers appropriate in connection with the investigation;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>adopt regulations to administer, carry out, or enforce this title.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner shall approve a name, trademark, or emblem if the name, trademark, or emblem:</text> <level label="i"> <text>is distinctive;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>will not interfere with the transactions of a licensee already operating in the State.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="26-201" title_number="26" title_name="Motor Clubs" subtitle_number="2" subtitle_name="Licenses"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="26-202" title_number="26" title_name="Motor Clubs" subtitle_number="2" subtitle_name="Licenses"> <level label="a"> <text>To qualify for a license to engage in the business of a motor club, a motor club with capital stock must have and maintain:</text> <level label="1"> <text>paid-in capital stock with a fixed nominal or par value in an amount not less than $5,000; and</text> </level> <level label="2"> <text>surplus in an amount not less than $10,000.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-203" title_number="26" title_name="Motor Clubs" subtitle_number="2" subtitle_name="Licenses"> <level label="a"> <text>An applicant for an initial license shall:</text> <level label="1"> <text>file with the Commissioner an application on the form that the Commissioner provides; and</text> </level> <level label="2"> <text>pay to the Commissioner an application fee of $200.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>The application shall include:</text> <level label="1"> <text>if the applicant is a corporation:</text> <level label="i"> <text>a certificate of good standing from the Department of Assessments and Taxation;</text> </level> <level label="ii"> <text>the names and addresses of the officers and directors of the corporation; and</text> </level> <level label="iii"> <text>the names and addresses of each owner of more than 10% of the capital stock of the corporation issued and outstanding;</text> </level> </level> <level label="2"> <text>if the applicant is not a corporation:</text> <level label="i"> <text>a list of all the owners of interests in the applicant;</text> </level> <level label="ii"> <text>a list of the officers of the applicant; and</text> </level> <level label="iii"> <text>a list of the parties to any operating or management agreement that affects the applicant, together with a copy of the agreement;</text> </level> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>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</text> </level> <level label="5"> <text>evidence of security in accordance with § 26–204 of this subtitle.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="26-204" title_number="26" title_name="Motor Clubs" subtitle_number="2" subtitle_name="Licenses"> <level label="a"> <text>An applicant for a license shall deposit with the Treasurer, who shall maintain in trust:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>The bond or letter of credit described under subsection (a)(2) or (3) of this section shall be:</text> <level label="i"> <text>in favor of the State for the members of the applicant that reside in the State;</text> </level> <level label="ii"> <text>issued by a surety insurer or bank authorized to do business in the State; and</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="2"> <text>The total liability of the surety insurer under the bond may not exceed the penal sum of the bond.</text> </level> <level label="3"> <text>The total liability of the bank under the letter of credit may not exceed the amount of the letter of credit.</text> </level> <level label="4"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>Neither the surety insurer nor the bank is liable for any breach of condition that occurs after the effective date of the cancellation.</text> </level> </level> <level label="5"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="26-205" title_number="26" title_name="Motor Clubs" subtitle_number="2" subtitle_name="Licenses"> <level label="a"> <text>Within a reasonable time after an application for a license is filed, the Commissioner shall issue a license to the applicant unless:</text> <level label="1"> <text>the applicant has not met all of the requirements of this title;</text> </level> <level label="2"> <text>in the judgment of the Commissioner, the applicant does not have sufficient financial responsibility to engage in the business of a motor club; or</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>If an application for a license filed under this subtitle is disapproved, the Commissioner shall:</text> <level label="1"> <text>retain $50 of the application fee paid by the applicant; and</text> </level> <level label="2"> <text>return the balance of the application fee to the applicant.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="26-206" title_number="26" title_name="Motor Clubs" subtitle_number="2" subtitle_name="Licenses"> <level label="a"> <text>A license expires on the first December 31 after its effective date unless it is renewed as provided in this section.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>the process for renewing the license;</text> </level> <level label="2"> <text>the date by which the Commissioner must receive the renewal application; and</text> </level> <level label="3"> <text>the amount of the renewal fee.</text> </level> </level> <level label="c"> <text>Before a license expires, the licensee may renew it for an additional 1–year term if the holder:</text> <level label="1"> <text>otherwise is entitled to a license;</text> </level> <level label="2"> <text>files with the Commissioner a renewal application:</text> <level label="i"> <text>on the form that the Commissioner provides; or</text> </level> <level label="ii"> <text>in an electronic format that the Commissioner approves;</text> </level> </level> <level label="3"> <text>files with the Commissioner the fees to be charged to members;</text> </level> <level label="4"> <text>provides a financial statement as required under § 26–203(c)(3) of this subtitle; and</text> </level> <level label="5"> <text>pays to the Commissioner a renewal fee of $100.</text> </level> </level> <level label="d"> <text>The Commissioner shall renew the license of each licensee that meets the requirements of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-207" title_number="26" title_name="Motor Clubs" subtitle_number="2" subtitle_name="Licenses"> <level label="a"> <level label="1"> <text>Each licensee must appoint the Commissioner as attorney for service of process issued against the licensee under this title.</text> </level> <level label="2"> <text>The appointment of the Commissioner must:</text> <level label="i"> <text>be in writing; and</text> </level> <level label="ii"> <text>state that the licensee agrees that:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> <level label="3"> <text>A certified certificate of the appointment shall be filed with the Commissioner.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commissioner immediately shall forward:</text> <level label="i"> <text>one copy of the process to the licensee by certified mail, return receipt requested; and</text> </level> <level label="ii"> <text>one copy of the process to the resident agent or other similar official, if any, of the licensee in the State.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>At the time of the service, the plaintiff shall pay to the Commissioner a fee of $2 for each service of process.</text> </level> <level label="2"> <text>If the plaintiff prevails in the suit, the plaintiff may recover, as part of the taxable costs, any fee paid under this subsection.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="26-208" title_number="26" title_name="Motor Clubs" subtitle_number="2" subtitle_name="Licenses"> <text>After notice and opportunity for a hearing, the Commissioner may suspend or revoke a license if the Commissioner finds that the licensee:</text> <level label="1"> <text>has violated any provision of this title;</text> </level> <level label="2"> <text>has failed to maintain the standards required under this title for the issuance of an initial license;</text> </level> <level label="3"> <text>is insolvent;</text> </level> <level label="4"> <text>has liabilities that exceed its assets;</text> </level> <level label="5"> <text>has engaged in a fraudulent or deceptive act; or</text> </level> <level label="6"> <text>has entered into a service contract the form of which has not been approved by the Commissioner.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-209" title_number="26" title_name="Motor Clubs" subtitle_number="2" subtitle_name="Licenses"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-301" title_number="26" title_name="Motor Clubs" subtitle_number="3" subtitle_name="Representatives"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>The notice required by this section shall be:</text> <level label="1"> <text>filed with the Commissioner on the form that the Commissioner provides; and</text> </level> <level label="2"> <text>accompanied by:</text> <level label="i"> <text>an initial registration fee of $5; and</text> </level> <level label="ii"> <text>a statement in writing, by the appointee, that gives:</text> <level label="1"> <text>the appointee’s name, age, residence address, business address, present occupation, and occupation for the 5 years immediately preceding the date of the notice;</text> </level> <level label="2"> <text>the names of motor clubs represented during the 5 years immediately preceding the date of the notice and where represented; and</text> </level> <level label="3"> <text>any other information the Commissioner requires.</text> </level> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="26-302" title_number="26" title_name="Motor Clubs" subtitle_number="3" subtitle_name="Representatives"> <text>The Commissioner shall issue a registration certificate to an appointee if it appears to the Commissioner that the appointee:</text> <level label="1"> <text>is a suitable and competent individual of good moral character;</text> </level> <level label="2"> <text>intends to represent to the public in good faith that the appointee is a representative;</text> </level> <level label="3"> <text>has not previously been denied registration or had a registration revoked under § 26-307 of this subtitle; and</text> </level> <level label="4"> <text>otherwise meets the requirements of this subtitle.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-303" title_number="26" title_name="Motor Clubs" subtitle_number="3" subtitle_name="Representatives"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="26-304" title_number="26" title_name="Motor Clubs" subtitle_number="3" subtitle_name="Representatives"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="26-305" title_number="26" title_name="Motor Clubs" subtitle_number="3" subtitle_name="Representatives"> <level label="a"> <text>A registration expires on the first August 31 after its effective date unless it is renewed as provided in this section.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>the process for renewing the registration;</text> </level> <level label="2"> <text>the date by which the Commissioner must receive the renewal application; and</text> </level> <level label="3"> <text>the amount of the renewal fee.</text> </level> </level> <level label="c"> <text>Before a registration expires, the licensee may renew the registration of a representative for an additional 1–year term if:</text> <level label="1"> <text>the representative otherwise is entitled to a registration;</text> </level> <level label="2"> <text>the licensee files with the Commissioner a renewal application:</text> <level label="i"> <text>on the form that the Commissioner provides; or</text> </level> <level label="ii"> <text>in an electronic format that the Commissioner approves; and</text> </level> </level> <level label="3"> <text>the licensee pays to the Commissioner a registration renewal fee of $2.</text> </level> </level> <level label="d"> <text>The Commissioner shall renew the registration of a representative if the licensee and representative meet the requirements of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-306" title_number="26" title_name="Motor Clubs" subtitle_number="3" subtitle_name="Representatives"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="26-307" title_number="26" title_name="Motor Clubs" subtitle_number="3" subtitle_name="Representatives"> <level label="a"> <text>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:</text> <level label="1"> <text>has made a false or misleading statement about the services offered by, or the business of, the licensee represented by the appointee or representative;</text> </level> <level label="2"> <text>has been convicted of a crime involving moral turpitude; or</text> </level> <level label="3"> <text>is otherwise unsuitable to act as a representative.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-308" title_number="26" title_name="Motor Clubs" subtitle_number="3" subtitle_name="Representatives"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="26-401" title_number="26" title_name="Motor Clubs" subtitle_number="4" subtitle_name="Miscellaneous Provisions"> <text>A motor club may not:</text> <level label="1"> <text>refer to its license or approval from the Commissioner or the State in any advertising, circular, contract, or membership card; or</text> </level> <level label="2"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-402" title_number="26" title_name="Motor Clubs" subtitle_number="4" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>Each motor club shall provide to its members:</text> <level label="1"> <text>a service contract;</text> </level> <level label="2"> <text>a membership card; and</text> </level> <level label="3"> <text>the following information:</text> <level label="i"> <text>the exact name of the motor club;</text> </level> <level label="ii"> <text>the street address of the motor club’s home office;</text> </level> <level label="iii"> <text>the street address of the motor club’s principal place of business in the State;</text> </level> <level label="iv"> <text>the telephone numbers of the motor club’s home and business offices; and</text> </level> <level label="v"> <text>a description of the motor club services or benefits to which the member is entitled.</text> </level> </level> </level> <level label="b"> <text>Unless a motor club provides and the Commissioner approves another form of service contract, the service contract consists of:</text> <level label="1"> <text>the completed application or renewal application of the motor club;</text> </level> <level label="2"> <text>the filed fees to be charged to members of the motor club; and</text> </level> <level label="3"> <text>the description of motor club services or benefits to which the members are entitled.</text> </level> </level> <level label="c"> <text>A service contract may not:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>contain an inequitable provision that does not have a substantial benefit to the member;</text> </level> <level label="3"> <text>require the payment of fees that are unreasonable in relation to the motor club service agreed to be performed; or</text> </level> <level label="4"> <text>offer reimbursement only, unless the contract clearly states that emergency road service will not be provided.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="26-501" title_number="26" title_name="Motor Clubs" subtitle_number="5" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A person may not act as a representative of a licensee unless the person is registered under Subtitle 3 of this title.</text> </level> <level label="b"> <text>A person may not sell, solicit, or act as a representative for an unlicensed motor club doing business in the State.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-501.1" title_number="26" title_name="Motor Clubs" subtitle_number="5" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>This title does not apply to:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="26-502" title_number="26" title_name="Motor Clubs" subtitle_number="5" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>not exceeding $25,000 for a licensee; or</text> </level> <level label="2"> <text>not exceeding $5,000 for a representative.</text> </level> </level> <level label="c"> <text>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.</text> </level> </section>