MOTOR CLUBS

Nev. Rev. Stat. 696A
in effect

Nev. Rev. Stat. § 696A.020 Definitions.

Except where the context otherwise requires, the terms used in this chapter shall be given the meanings set forth in NRS 696A.030 to 696A.070, inclusive, but such meaning shall not, merely by reason of the enactment of NRS 696A.030 to 696A.070, inclusive, govern the interpretation of any other provision of this Code.

Nev. Rev. Stat. § 696A.030 Acts constituting service.

Any act by a motor club for the purpose of rendering a service defined in this chapter constitutes such service, whether or not the service as defined is completed.

Nev. Rev. Stat. § 696A.040 “Club agent” defined.

“Club agent” means a person other than the motor club itself who acts or aids in any manner in the solicitation, delivery or negotiation of any service contract, or of the renewal or continuance thereof.

Nev. Rev. Stat. § 696A.050 “Motor club” defined.

“Motor club” means any person who in consideration of dues, assessments or periodic payments of money, promises its members or subscribers to assist them in matters relating to travel and the operation, use and maintenance of a motor vehicle in the supply of features or services or reimbursement thereof, which may include: 1. Such services as community traffic safety services, travel and touring service, theft or reward service, map service, towing service, buying and selling service, discount service, emergency road service, bail bond service and legal fee reimbursement service in the defense of traffic offenses, none of which enumerated services, if provided by motor club itself, shall be subject to the insurance laws of this state. 2. The purchase of accidental injury and death benefits insurance coverage, as provided by applicable statutes, by an insurer authorized to do business in this state. 3. Other features or services not deemed by the Commissioner to constitute the business of insurance.

Nev. Rev. Stat. § 696A.070 “Service contract” defined.

“Service contract” means a written contract whereby any person promises for a consideration to render, furnish or procure motor club service for any other person.

Nev. Rev. Stat. § 696A.080 Deposit and maintenance of security: Form; amount.

1. A person shall not render or agree to render motor club service without first depositing and thereafter continuously maintaining security in one of the following forms with the Commissioner: (a) The sum of $100,000 in cash. (b) Securities approved by the Commissioner, having a market value of $100,000 and being of a type approved by the Commissioner and legal for investment by admitted insurers issuing nonassessable policies on a reserve basis. (c) A surety bond which complies with NRS 679B.175 and is in the principal sum of $100,000, with an admitted surety insurer as surety. 2. In lieu of the deposit required by subsection 1, a foreign or alien motor club may deposit evidence satisfactory to the Commissioner that it has on deposit with an officer of a state of the United States of America, authorized by the law of such state to accept such deposit: (a) Securities which meet the requirements of paragraph (b) of subsection 1 of at least a like amount for the benefit and security of all members and creditors of such motor club; or (b) A surety bond, in the principal sum of $100,000, which meets the requirements of NRS 696A.090 , issued by a bonding company authorized to do business in the State of Nevada and in the state where the bond is posted.

Nev. Rev. Stat. § 696A.090 Purpose and conditions of security.

Such security shall: 1. Be for the protection, use and benefit of all persons whose applications for membership in a motor club have been accepted by such club or its representative. 2. Be subject to the following conditions and, if a bond, shall be so expressly conditioned: (a) The club will faithfully furnish and render to such persons any and all of the motor club services sold or offered for sale by it. (b) The club will pay any fines, fees or penalties imposed upon it under or pursuant to this chapter.

Nev. Rev. Stat. § 696A.100 Persons authorized to sue on bond.

If such bond or evidence that such bond is filed in another state is filed, any person defrauded or injured by any wrongful act, misrepresentation or failure on the part of a motor club with respect to the selling or rendering of any of its services may bring suit on such bond in the person’s own name; but the aggregate liability of the surety for all such suits shall, in no event, exceed the sum of such bond.

Nev. Rev. Stat. § 696A.110 Deposit in lieu of bond: Conditions; execution on judgments against club.

A deposit of cash or securities, in lieu of such bond, shall be subject to the conditions applying to the bond and is also subject to execution on judgments against the club.

Nev. Rev. Stat. § 696A.120 Name of club: Submission to Commissioner for approval; rejection of similar name.

The name of a motor club shall be submitted to the Commissioner for approval pursuant to NRS 696A.140, before the commencement of business under the provisions of this chapter. The Commissioner may reject any name so submitted when the proposed name would interfere with the transactions of a motor club already doing business in this state or is so similar to one already appropriated as to confuse or is likely to mislead the public in any respect. In such case a name not liable to such objections shall be chosen.

Nev. Rev. Stat. § 696A.130 Rendering of motor club service without certificate of authority prohibited.

A person shall not render or agree to render motor club service in this state without first procuring from the Commissioner a certificate of authority so to act.

Nev. Rev. Stat. § 696A.140 Certificate of authority: Application and documents; fees; bond; name approval.

The Commissioner shall not issue a certificate of authority to any motor club until: 1. It files with the Commissioner the following: (a) A formal application for the certificate in such form and detail as the Commissioner requires, executed under oath by its president or other principal officer. (b) A certified copy of its charter or articles of incorporation and its bylaws. 2. It pays to the Commissioner the following: (a) The fee specified in NRS 680B.010 for the filing of an application for the certificate; (b) The fee specified in NRS 680B.010 for the issuance of the certificate; and (c) In addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 . 3. It deposits the required cash, securities, bond or evidence of such a deposit in another state as provided in NRS 696A.080 with the Commissioner. 4. Its name is approved by the Commissioner pursuant to NRS 696A.120 .

Nev. Rev. Stat. § 696A.150 Certificate of authority: Expiration; renewal; fees.

Every certificate of authority issued to a motor club expires annually on March 1 unless it is revoked or suspended. The certificate may be renewed by paying to the Commissioner an annual fee for renewal of $500 before the expiration of the certificate and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.

Nev. Rev. Stat. § 696A.160 Certificate of authority: Revocation or suspension; notice to public.

1. The Commissioner shall revoke or suspend the certificate of authority of a motor club whenever, after a hearing, the Commissioner finds in accordance with the procedure provided in NRS 679B.310 to 679B.370 , inclusive, that any of the following circumstances exist: (a) The club has violated any provision of this chapter. (b) It is insolvent. (c) Its assets are less than its liabilities. (d) It or its officers refuse to submit to an examination. (e) It is transacting business fraudulently. 2. The Commissioner shall give notice of such revocation or suspension to the public in such manner as the Commissioner deems proper.

Nev. Rev. Stat. § 696A.170 Examination by Commissioner.

1. Every motor club shall be subject to examination by the Commissioner in the manner and under the conditions provided for examination of insurers contained in NRS 679B.230 to 679B.290 , inclusive. 2. The expense of such examination shall be paid by the motor club.

Nev. Rev. Stat. § 696A.180 Commissioner required to be appointed attorney upon whom process may be served.

1. Every motor club desiring to transact business in this state shall file with the Commissioner a duly executed instrument whereby the motor club shall appoint and constitute the Commissioner and his or her successor or successors in office the true and lawful attorney of such motor club upon whom all lawful process in any action or legal proceeding against it on a contract issued or cause of action arising in this state may be served, and shall agree that any such lawful process against it which may be served upon its attorney as provided in this section shall be of the same force and validity as if served upon the motor club and that the authority thereof shall continue in force irrevocably so long as any liability of the motor club in the State remains outstanding. The fee for filing such power of attorney shall be $5. 2. Process authorized by such instrument or by any similar instrument executed prior to January 1, 1972, shall be served in the manner and under the conditions provided in NRS 680A.260 .

Nev. Rev. Stat. § 696A.185 Annual filing requirements; fees and assessments; administrative penalty.

1. Every motor club shall file with the Commissioner on or before March 1 of each year a report which summarizes its activities for the preceding calendar year. The report must be verified by at least two officers of the motor club. 2. The report must be on a form prescribed by the Commissioner and must include: (a) A financial statement for the motor club, including its balance sheet and receipts and disbursements for the preceding calendar year; (b) Any material changes in the information given in the previous report; (c) The number of members enrolled in the year; (d) The costs of all services provided for that year; and (e) Any other information relating to the motor club requested by the Commissioner. 3. The motor club must pay to the Commissioner all applicable fees. 4. Every motor club shall file with the Commissioner on or before June 1 of each year a financial statement of the motor club certified by an independent public accountant. 5. Any motor club failing, without just cause beyond its reasonable control, to file timely the report or financial statement or to pay timely the fees as required by this section shall pay an administrative penalty of $100 per day until the report or statement is filed, except that the total penalty must not exceed $3,000. The Attorney General shall recover the penalty in the name of the State of Nevada. 6. A motor club is not exempt from the provisions of NRS 679B.700 .

Nev. Rev. Stat. § 696A.190 Information for members; service contract.

1. Every motor club shall furnish to its members a service contract or a membership card and the following information: (a) The exact name of the motor club; (b) The exact location of the motor club’s home office, including the street, number and city; and (c) A description of the services or benefits to which the member is entitled. 2. A completed application for membership and the description of services constitutes the service contract.

Nev. Rev. Stat. § 696A.200 Approval of forms; revisions and modifications.

1. No motor club shall issue for delivery or deliver in this state any evidence of membership, or statement of services and benefits, or service contract until the form thereof has been filed with and approved in writing by the Commissioner. The Commissioner shall approve any such form found by the Commissioner to be in compliance with law and free of ambiguous, inequitable and misleading provisions. 2. Every motor club having met the requirements of subsection 1 shall thereafter file with the Commissioner every revision or modification of any document required in subsection 1. Such revision or modification shall be effective when filed and shall be deemed to meet the requirements of this chapter until disapproved by the Commissioner.

Nev. Rev. Stat. § 696A.210 Service contract: Required provisions.

A service contract as defined in NRS 696A.070 shall not be executed, issued or delivered in this state unless it contains the following: 1. The exact corporate or other name of the club. 2. The exact location of its home office and of its usual place of business in this state, giving street number and city. 3. A provision that the contract may be cancelled at any time by either the club or the holder, and that the holder will, if the holder has actually paid the consideration, thereupon be entitled to the unused portion of the consideration paid for such contract, calculated on a pro rata basis over the period of the contract, without any deductions. 4. A provision plainly specifying: (a) The services promised. (b) That the holder will not be required to pay any sum, in addition to the amount specified in the contract, for any services thus specified. (c) The territory wherein such services are to be rendered. (d) The date when such service will commence. 5. A statement in not less than 14-point modern type at the head of the contract stating, “This is not an insurance contract.”

Nev. Rev. Stat. § 696A.220 Service contract: Solicitation for club without certificate of authority prohibited.

A person shall not solicit or aid in the solicitation of another person to purchase a service contract issued by a club not having a certificate of authority procured pursuant to this chapter.

Nev. Rev. Stat. § 696A.230 Service contract: Misrepresentation of terms, benefits or privileges prohibited.

A club or an officer or agent thereof shall not in any manner misrepresent the terms, benefits or privileges of any service contract issued or to be issued by it.

Nev. Rev. Stat. § 696A.240 Service contract: Contrary to provisions of chapter valid and binding.

Any service contract made, issued or delivered contrary to any provision of this chapter, shall nevertheless be valid and binding on the club.

Nev. Rev. Stat. § 696A.250 License: Required to act as club agent.

No person shall act as a club agent in this state without first procuring a license so to act from the Commissioner.

Nev. Rev. Stat. § 696A.260 License: Contents of application. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. An application for a license as a club agent must be submitted to the Commissioner upon forms prescribed and furnished by the Commissioner. If the applicant is a natural person, the application must include the social security number of the applicant. As a part of, or in connection with, any application, the applicant shall furnish information concerning his or her identity, personal history, experience, business record and other pertinent facts which the Commissioner may reasonably require. 2. If the applicant is a firm, partnership or corporation, the application, in addition to the requirements of subsection 1, shall: (a) Contain the names of all members and officers of the firm, partnership or corporation; and (b) Designate who is to exercise the powers to be conferred by the license on the firm, partnership or corporation. 3. The Commissioner shall require each natural person of a firm, partnership or corporation to furnish information to the Commissioner as though applying for an individual license. 4. Any person willfully misrepresenting any fact required to be disclosed in any application is subject to the penalties provided in NRS 696A.350 .

Nev. Rev. Stat. § 696A.270 License: Conditions for issuance and renewal.

For the protection of the people of this state, the Commissioner shall not: 1. Issue or renew any club agent’s license except in compliance with this chapter. 2. Issue or renew any club agent’s license to, or to be exercised by, any person found by the Commissioner to be untrustworthy or incompetent, or who has not established to the satisfaction of the Commissioner that the person is qualified therefor in accordance with this chapter.

Nev. Rev. Stat. § 696A.280 License: Qualifications.

The Commissioner shall license as a club agent only an individual who has otherwise complied with this chapter, and who has furnished evidence satisfactory to the Commissioner that the individual: 1. Is at least 21 years of age. 2. Is a bona fide resident of this state or is a resident of a state which: (a) Does not require a license to act as a club agent; or (b) Permits residents of this state to act as club agents in such other state. 3. Is a trustworthy individual with a good reputation.

Nev. Rev. Stat. § 696A.290 License: Form and contents.

The Commissioner shall prescribe the form of the club agent’s license, but it shall contain: 1. The name of the licensee and the business address of the licensee. 2. The date of issuance and the date of expiration. 3. The name of the represented motor club.

Nev. Rev. Stat. § 696A.300 License: Term; renewal; fees. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. Each license for a club agent issued or renewed under this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. A license may be renewed upon submission of the statement required pursuant to NRS 696A.303 and payment to the Commissioner of all applicable fees for renewal. The statement must be submitted and the fees must be paid on or before the renewal date for the license. 2. Any license not so renewed expires on the renewal date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by the statement required pursuant to NRS 696A.303 , a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110 . 3. In addition to all applicable fees required pursuant to NRS 680C.110 to be deposited in the Fund for Insurance Administration and Enforcement created by NRS 680C.100 , the Commissioner shall collect in advance and deposit with the State Treasurer for credit to the State General Fund the fees specified in NRS 680B.010 for licensure as a club agent. 4. As used in this section, “renewal date” means: (a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license. (b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.

Nev. Rev. Stat. § 696A.303 Payment of child support: Statement by applicant for license; grounds for denial of license; duty of Commissioner. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. A natural person who applies for the issuance or renewal of a club agent’s license shall submit to the Commissioner the statement prescribed by the Division of Social Services of the Department of Human Services pursuant to NRS 425.520 . The statement must be completed and signed by the applicant. 2. The Commissioner shall include the statement required pursuant to subsection 1 in: (a) The application or any other forms that must be submitted for the issuance or renewal of the license; or (b) A separate form prescribed by the Commissioner. 3. A club agent’s license may not be issued or renewed by the Commissioner if the applicant is a natural person who: (a) Fails to submit the statement required pursuant to subsection 1; or (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order. 4. If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

Nev. Rev. Stat. § 696A.307 Suspension of license for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who has been issued a club agent’s license, the Commissioner shall deem the license to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560 . 2. The Commissioner shall reinstate a club agent’s license suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560 .

Nev. Rev. Stat. § 696A.310 Suspension or revocation of or refusal to renew license of club agent.

The Commissioner may suspend, revoke or refuse to renew any club agent’s license issued under this chapter for any cause specified in any other provision of this chapter, or for any of the same applicable grounds and in the manner provided for a producer of insurance in NRS 683A.451 and 683A.461.

Nev. Rev. Stat. § 696A.320 Revocation, suspension or refusal of licenses of firms, partnerships or corporations.

The club agent’s license of any firm, partnership or corporation may be suspended, revoked or refused for any cause which relates to any individual designated in the license to exercise its powers.

Nev. Rev. Stat. § 696A.340 Applicability of chapter.

This chapter does not apply to: 1. A duly authorized attorney at law acting in the usual course of his or her profession. 2. Any authorized insurer. 3. Any motor carrier association providing one or more of the services described in NRS 696A.050 to its members.

Nev. Rev. Stat. § 696A.350 Penalties.

1. Any person violating the provisions of NRS 696A.080 to 696A.110 , inclusive, is guilty of a gross misdemeanor. 2. Any person violating any other provisions of NRS 696A.010 to 696A.340 , inclusive, other than NRS 696A.080 to 696A.110 , inclusive, is guilty of a misdemeanor.

Nev. Rev. Stat. § 696A.360 Applicability of other provisions.

Motor clubs are also subject, in the same manner as insurers, to the following provisions of this Code to the extent reasonably applicable: 1. Chapter 679A of NRS (scope and definitions); 2. Chapter 679B of NRS (Commissioner of Insurance); 3. NRS 683A.400 (fiduciary funds); 4. Chapter 685B of NRS (unauthorized insurers); 5. NRS 686A.010 to 686A.310 , inclusive (trade practices and frauds); and 6. Chapter 696B of NRS (delinquent insurers).
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-696A.htmlFetched: 10/4/2026