Motor Clubs Filing Requirements
TO: All Motor Clubs
SUBJECT: Annual Statement and Independent CPA Report Filings
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 filings, unless otherwise noted, must be submitted using the Online Assistance System for Insurer Submittals (OASIS).
For any document requiring original signatures, please mail the signature page(s) to:
California Department of Insurance
Financial Analysis Division
300 South Spring Street, South Tower, 13th Floor
Los Angeles, CA 90013
Attention: Financial Records Unit
For questions or inquiries, please contact:
Financial Records Unit
Deputy Insurance Commissioner
Financial Surveillance Branch