General Laws of Massachusetts - Chapter 174B Regulation of Automobile Clubs - Section 9 Service contracts; form; contents

Section 9. No service contract shall be executed, issued or delivered in this commonwealth until the form thereof has been filed with the commissioner. The service contract may be in the form of a written agreement between the automobile club and the member or it may consist of a completed application, a membership card and a written description of services to be rendered by the automobile club. No service contract shall be executed, issued or delivered in this state unless it contains the following:

(a) The exact corporate or other name of the club.

(b) The location of its home office and its usual place of business in the commonwealth, if any, giving street number and city.

(c) A provision that the contract may be cancelled at any time by given written notice thereof by either the club or the holder, and that the holder will, if the dues or membership fee has been paid thereupon, be entitled to a refund of 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; provided that automobile club may make a reasonable minimum charge.

(d) A provision plainly specifying the services promised, 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, the territory wherein such services are to be rendered, the effective date of the contract and the first renewal date.

(e) A statement on the first page of the service contract in not less than fourteen point type stating, “This is not an automobile liability insurance contract”.

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Last modified: September 11, 2015