Required filing of Annual Statement of Independent CPA Audit Statements for Motor Clubs

The purpose of this notice is to advise you all motor clubs are required to file an Annual Statement.  Pursuant to the California Insurance Code (CIC) Sections 12162, 12166 and 12168 , the financial statement should contain information on the previous year.

In addition, CIC Section 12162.5 requires that each motor club must maintain a minimum net worth of $250,000  at all times. The failure of a motor club to meet this requirement could result in: an examination by the Department [CIC Section 12169], a determination of insolvency [CIC Section 12162.6] pursuant to the requirements of CIC Section 12162.6 and possible suspension and revocation procedures pursuant to the requirements of CIC Section 12164.

Additionally, the motor clubs are required to provide an Independent CPA Report by the required due date June 30 of the year following the year covered by the audit. Failure to provide the audit report could result in a material deficiency pursuant to CIC Section 12168 and subject the company and suspension and revocations procedures pursuant to CIC Section 12164.

Your attention is also being directed to the following Sections of the Insurance Code: CIC Section 12162.7 -liquid assets defined; CIC Section 12166 - Annual fees; CIC Section 12168 - amendments and changes, filing fees.

For your convenience, copies of the prescribed forms including the exhibit of membership fees and claims (Schedule E) are available in our California Department of Insurance' Website.

All required documents must be submitted online with (OASIS) Online Assistance System for Insurer Submittal. In addition, please submit a paper copy of pages containing original signatures by the reporting deadline to:

State of California
Department of Insurance

Financial Analysis Division
Attn: Financial Records Unit - Motor Club
300 South Spring Street, 13th Floor, South Tower
Los Angeles, CA90013

Should you have any questions, please contact FAD-II Bureau.

Deputy Insurance Commissioner
Financial Surveillance Branch