(a) No club may offer, issue, or renew a motor club service contract in this State without first obtaining from the Administrator a certificate of authority so to act. A certificate of authority must be issued by the Administrator to the club upon submission of items (1) through (6) of this subsection (a) in a form satisfactory to the Administrator. The applicant shall submit:
(1) A formal application for the certificate in the form and detail the Administrator requires, executed under oath by its president and secretary or two other principal officers of the club or other persons the Administrator may require.
(2) A certified copy of its charter or articles of incorporation and its bylaws, if any.
(3) If a corporation, a certified copy of the certificate of authority or good standing certificate from the Secretary of State.
(4) A copy of its most recent financial statement prepared in accordance with generally accepted accounting principles and certified by two principal officers of the applicant or, in the event the applicant is not a corporation, other persons as the Administrator may require.
(5) An explanation of its plan of doing business and copies of the following:
(i) Its application for membership.
(ii) The proposed membership certificate or identification card and any proposed addendum thereto.
(iii) Any individual insurance policy or group certificate to be offered.
(iv) Any service contract to be issued.
(6) Any other relevant information requested by the Administrator.
(b) No certificate of authority may be issued by the Administrator until the club has paid an initial certificate of authority fee of five hundred dollars.
HISTORY: 1987 Act No. 155, Section 6, eff January 1, 1988.
Editor's Note
This section is derived from former Section 38-50-70.