# Insurance (GIN)

## Title 26. Motor Clubs

### Subtitle 1. Definitions; General Provisions

#### Section 26-101

(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.

#### Section 26-102

(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 Sec. 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 Sec. 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 Sec. 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.

#### Section 26-103

(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.

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Md. Code Ann., Ins. (as displayed at mgaleg.maryland.gov, October 16, 2026)