New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 17B - INSURANCE PRODUCER STANDARDS OF CONDUCT: COMMISSIONS AND FEES
Subchapter 3 - FEES
Section 11:17B-3.3 - Motor club fees

Universal Citation: NJ Admin Code 11:17B-3.3

Current through Register Vol. 56, No. 18, September 16, 2024

(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.

Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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