NORTH CAROLINA GENERAL ASSEMBLY
1963 SESSION

CHAPTER 698
HOUSE BILL 737

AN ACT TO AMEND CHAPTER 66 OF THE GENERAL STATUTES SO AS TO PROVIDE FOR THE LICENSING AND REGULATION OF MOTOR CLUBS AND ASSOCIATIONS BY THE COMMISSIONER OF INSURANCE, AND TO PROVIDE FOR FEES IN CONNECTION THEREWITH.

The General Assembly of North Carolina do enact:

Section 1.  Chapter 66 of the General Statutes is hereby amended by inserting a new Article immediately following Article 9, to be designated as Article 9A, and to read as follows:
"Article 9A
"Licensing of Motor Clubs and Associations by the Commissioner of Insurance.
"G.S. 66-49.1.  Definitions. As used in this Article, unless the context otherwise requires, the term:
"(a)	'Motor Club' means any person, firm, association or corporation, whether or not residing, domiciled or chartered in this State, which, in consideration of dues, assessments, or periodic payments of money, promises its members or subscribers to assist them in matters relating to the ownership, operation, use or maintenance of a motor vehicle by rendering three (3) or more of such services as towing service, emergency road service, legal service, bail or cash appearance bond service, map service, touring service, personal travel and accident insurance service, or automobile theft reward service.
"(b)	'Commissioner' means the Commissioner of Insurance of North Carolina; and 'Department' means the Department of Insurance of North Carolina.
"(c)	'Licensee' means a Motor Club to whom a license has been issued under this Article.
"(d)	'Towing' service shall mean furnishing means to move a motor vehicle from one place to another under power other than its own.
"(e)	'Emergency road service' shall mean roadside adjustment of a motor vehicle so that such vehicle may be operated under its own power, provided the cost of rendering such service does not exceed twenty-five dollars ($25.00).
"(f)	'Legal service' shall mean providing for reimbursement of members or subscribers for attorneys' fees not to exceed three hundred dollars ($300.00) in the event criminal proceedings are instituted against such members or subscribers as a result of the operation of a motor vehicle.
"(g)	'Bail or cash appearance bond service' shall mean the furnishing of cash or surety bond for its members or subscribers accused of a violation of the motor vehicle law, or of any law of this State by reason of an automobile accident to secure their release and subsequent appearance in court.
"(h)	'Map Service' shall mean the furnishing of road maps to its members or subscribers without cost.
"(i)	'Touring service' shall mean the furnishing of touring information to its members or subscribers without cost.
"(j)	'Personal travel and accident insurance service' means making available to its members or subscribers a personal travel and accident insurance policy issued by a duly licensed insurance company in this State.
"(k)	'Automobile theft reward service' means a reward payable to any person, law enforcement agency or officer for information leading to the recovery of a member's or subscriber's stolen vehicle and to the apprehension and conviction of the person or persons unlawfully taking such vehicle.
"G.S. 66-49.2.  License Required of Motor Clubs. No Motor Club, district or branch office of a Motor Club, or franchise Motor Club shall engage in business in this State unless it holds a valid license issued to it by the Commissioner as hereinafter provided.
"G.S. 66-49.3.  Applications for Licenses; Fees. Licenses hereunder shall be obtained by filing written application therefor with the Commissioner in such form and manner as the Commissioner shall require. As a prerequisite to issuance of a license:
"(a)	The applicant shall furnish to the Commissioner such data and information as the Commissioner may deem reasonably necessary to enable him to determine, in accordance with the provisions of General Statute 66-49.4, whether or not a license should be issued to the applicant.
"(b)	If the applicant is a Motor Club it shall be required to pay to the Commissioner an annual license fee of one hundred dollars ($100.00) and to deposit or file with the Commissioner a bond, in favor of the State of North Carolina and executed by a surety company duly authorized to transact business in this State, in the amount of fifty thousand dollars ($50,000.00), or securities of the type hereinafter specified in the amount of fifty thousand dollars ($50,000.00), pledged to or made payable to the State of North Carolina and conditioned upon the full compliance by the applicant with the provisions of this Article and the regulations and orders issued by the Commissioner pursuant thereto, and upon the good faith performance by the applicant of its contracts for Motor Club services.
"(c)	If the applicant is a branch or district office of a Motor Club licensed under this Article it shall pay to the Commissioner a license fee of ten dollars ($10.00).
"(d)	If the applicant is a franchise Motor Club it shall pay to the Commissioner an annual license fee of twenty-five dollars ($25.00) and shall deposit or file with the Commissioner a bond, in favor of the State of North Carolina and executed by a surety company duly authorized to transact business in this State, in the amount of fifty thousand dollars ($50,000.00), or securities of the type hereinafter specified in the amount of fifty thousand dollars ($50,000.00), pledged to or made payable to the State of North Carolina and conditioned upon the full compliance by the applicant with the provisions of this Article and the regulations and orders issued by the Commissioner pursuant thereto and upon the good faith performance by the applicant of its contracts for Motor Club services.
"(e)	Any applicant depositing securities under this Section shall do so in the form and manner as prescribed in Article 20, Chapter 58 of the General Statutes of North Carolina, and the provisions of Article 20, Chapter 58 of the General Statutes of North Carolina, shall be applicable to securities pledged under this Article.
"G.S. 66-49.4.  Issuance of License; Annual Renewal. Within sixty (60) days after an application for license is filed, the Commissioner shall issue a license to the applicant unless he shall find:
"(a)	That the applicant has not met all of the requirements of this Article, or
"(b)	That the applicant does not have sufficient financial responsibility to engage in business as a Motor Club in this State, or
"(c)	That the applicant has failed to make a reasonable showing that its managers, officers, directors and agents are persons of reliability and integrity. If any such finding is made, the Commissioner shall notify the applicant as soon as practicable of the reason for his refusal to issue the license, and inform the applicant of its right to a hearing on the matter as provided in General Statute 66-49.6. All licenses issued hereunder, and all renewals thereof, shall expire on June 30th following such issuance or renewal. Renewal of all licenses not previously revoked or suspended shall be automatic upon timely payment by the licensee of the annual fee.
"G.S. 66-49.5.  Powers of the Commissioner. The Commissioner shall have the same powers and authority for the purpose of conducting investigations and hearings under this Article as that vested in him by General Statutes 58-9.2 and 58-44.6:
"(a)	To investigate possible violation of this Article and to report evidence thereof to the Attorney General who may recommend prosecution to the appropriate solicitor;
"(b)	To suspend or revoke any license issued under this Article upon a finding, after notice and opportunity for hearing, that the holder of said license has violated any of the provisions of this Article, or has failed to maintain the standards requisite to original licensing as indicated in General Statutes 66-49.4 hereof;
"(c)	To require any licensee to cease doing business through any particular agent or representative upon a finding after notice and opportunity for hearing, that such agent or representative has intentionally made false or misleading statements concerning the Motor Club services offered by the Motor Club represented by him;
"(d)	To approve or disapprove the name, trademarks, emblems, and all forms which an applicant for license or licensee employs or proposes to employ in connection with its business. If such name, trademarks or emblems is distinctive and not likely to confuse or mislead the public as to the nature or identity of the Motor Club using or proposing to use it, then it shall be approved, otherwise, the Commissioner may disapprove its use and effectuate such disapproval by the issuance of an appropriate order; and
"(e)	To make any rules or regulations necessary to enforce the provisions of this Article.
"G.S. 66-49.6.  Opportunity for Hearing; Judicial Review. Any applicant for a license or renewal of a license hereunder shall be entitled to a hearing before the Commissioner in the event such application is denied or not acted upon within a reasonable time. Any applicant or licensee adversely affected by a determination of the Commissioner shall have a right to seek judicial review of such determination under the provisions and limitations of General Statutes 58-9.3.
"G.S. 66-49.7.  Process Agent. Every Motor Club licensed hereunder shall appoint and maintain at all times an agent for service or process who shall be a resident of North Carolina.
"G.S. 66-49.8.  Violations; Penalty. Any person, firm, association or corporation who shall violate any of the provisions of this Article shall be guilty of a misdemeanor, and upon conviction shall be punished in the discretion of the Court.
"G.S. 66-49.9.  Disposition of Fees. In the event an application for license filed hereunder is not approved, the Commissioner shall retain ten dollars ($10.00) of the fee paid to him in connection with said application, and return the balance to the applicant. All fees collected by the Commissioner hereunder shall be available to the Department of Insurance for paying the expense incurred in connection with the administration of this Article.
"G.S. 66-49.10.  Other Licensing Provisions not Affected. Nothing in this Article shall be construed as amending, repealing, or in any way affecting any laws now in force relating to the licensing of insurance agents or insurance companies, or to the regulation thereof, as provided in Chapter 58 of the General Statutes."
Sec. 2.  All laws and clauses' of laws in conflict herewith are hereby repealed.
Sec. 3.  This Act shall become effective October 1st, 1963.
In the General Assembly read three times and ratified, this the 5th day of June, 1963.