N.J. Admin. Code § 11:17B-3.3

Current through Register Vol. 57, No. 1, January 6, 2025

Section 11:17B-3.3 - Motor club fees

(a) Any insurance producer who acts as a motor club representative or receives any compensation, directly or indirectly, or on account of the sale of a motor club service contract purchased in connection with the negotiation or sale of an automobile insurance policy or contract shall:

1. Obtain at the time of the initial application for the motor club service contract a dated written agreement, separate and apart from any other agreements, signed by both the insurance producer and the insured or prospective insured, stating the following information:

i. That the motor club service contract is not an insurance contract;

ii. That the motor club service contract is optional and is not required to be purchased by the insured or prospective insured as a condition of obtaining automobile insurance coverage;

iii. That the motor club membership fee is not related to or included in the automobile insurance premium charge, and cannot lawfully be included in a premium finance agreement entered into by the insured or prospective insured;

iv. The amount of the motor club fee and the automobile insurance premium charge;

v. The identification of the person(s) and/or vehicle(s) covered by the motor club service contract and the term of the contract; and

vi. The name and location of the motor club and the benefits and/or services provided by the motor club service contract.

2. Furnish the insured or prospective insured with a copy of the written agreement, identified at (a)1 above, at the time of execution thereof. The insurance producer shall also maintain a copy of the written agreement in the file of the insured or prospective insured.

(b) No insurance producer acting as a motor club representative shall:

1. Make the availability of automobile insurance dependent upon the purchase of a motor club membership;

2. Induce an insured or prospective insured to finance automobile insurance premiums which would not otherwise be necessary if not for the motor club costs; or

3. Sell more than one motor club agreement per automobile insurance policy.

N.J. Admin. Code § 11:17B-3.3