Regulations 36 OS 3101 – 3112
Oklahoma Insurance Department (OID)

RIS@oid.ok.gov

The Regulated Industry Services (RIS) Division oversees the licensing, registration, and regulation of business entities that are not traditional insurance carriers. These business entities are, however, legally obligated to be regulated in some capacity by the OID.

A Motor Service Club in Oklahoma, as regulated by the Oklahoma Insurance Department, is a group or company that offers at least three (3) types of helpful services to people who own or drive cars.

Here are the services a Motor Service Club may provide:

• Towing Service: Moving your car when it breaks down.
• Emergency Road Service: Fixing things like a flat tire or a dead battery so you can drive safely.
• Insurance Service: Offering insurance for accidents or other losses.
• Bail Bond Service: Helping pay bail if you’re arrested while driving.
• Legal Service: Providing a lawyer if you get into legal trouble related to your car.
• Discount Service: Giving special deals on things like gas, parts, or repairs.
• Financial Service: Lending money to members for car-related costs.
• Buying/Selling Service: Helping members buy or sell a car.
• Theft Service: Finding a stolen car or helping catch who took it.
• Map Service: Giving out free road maps.
• Touring Service: Giving free travel advice or route suggestions.

$250 – Initial application
$100 – Due annually by July 1st. (Applications may be submitted up to 90 days in advance of expiration.)

Before a Motor Service Club can do business in Oklahoma, it must show the state that it is safe, responsible, and financially stable. Here’s what it must provide:

Money Safety Deposit
The club has to give the Insurance Commissioner one of these, so the state knows it can cover its promises:

• Either $50,000 in cash or securities
• Or a $100,000 surety bond

Official Company Documents
The club must turn in a certified copy of its official papers, including:

• Articles of incorporation (how the company was legally formed)
• Bylaws (rules for how the company operates)

Financial Records
The club needs to show it is financially healthy. It must provide:

• A financial statement dated December 31 of the last year or later
• This can be an audited financial report or a verified operating statement and balance sheet

Extra Requirements for Companies Outside Oklahoma
If the company is based in another state, it must also submit a certificate or license from its home state demonstrating that it is legally authorized to operate a motor club there. This certificate must be less than 30 days old.

Plan for Doing Business in Oklahoma
The club must explain how it will operate in Oklahoma and include:

• A copy of its membership application
• Samples of membership cards or certificates
• Copies of insurance policies it will offer
• Copies of service contracts it will be provide to the MSC members
• Any other information the Commissioner thinks is necessary

Background Forms for Company Leaders
Officers, directors, managers, and owners who hold more than 10% of the company must fill out NAIC Form 11 biographical affidavit, which tells the state their background and confirms they are not disqualified under Oklahoma law.

Automobile Clubs or Associations:

• They can give members a bond certificate that acts like bail for up to $500, good for 1 year from the issue date.
• To do this, it must be fully backed by:
  • 1. An insurance company licensed in Oklahoma that offers surety bonds,
  • 2. And that company must agree to cover all the certificates it backs.
• That insurance company must file paperwork with the Insurance Commissioner saying it will guarantee these bonds.
• The certificate can also be issued as part of an auto liability insurance policy, as long as the insurer is authorized in Oklahoma.

Trucking Associations:

• They can offer bond certificates with a limit of $1,000, good from January 1 through the end of the year.
• These must be backed either by the trucking association itself or by a licensed surety insurance company—and that backing must protect all certificates during the year.
• The backing insurer must also file paperwork with the Insurance Commissioner, promising to guarantee the bonds.
• The Commissioner can require the trucking association to deposit up to $50,000 (cash or bond) with the state to make sure they can pay their bond promises.
• These bond certificates can be added to regular auto liability insurance, but only if the insurer files the right paperwork.

• Every motor service club must submit electronically a financial report by July 1 each year. Documents should indicate the financial condition of the organization as of December 31st of the previous calendar year.
• Two officers in the club (like the president and secretary) must sign and swear that the report is honest and correct.

Inspection by the Insurance Commissioner:

• Whenever the Insurance Commissioner deems it to be prudent or necessary the Commissioner shall personally, or by an authorized representative, visit each motor service club and thoroughly inspect and examine its financial condition, its ability to fulfill its obligations, whether it has complied with the provisions of this act and any other facts relative to its business methods, management, and the equity of its dealings with its members.The OID will evaluate:
  • The club’s finances to make sure they can pay their bills.
  • How well does the club keep its promises to members?
  • Whether the club follows the Oklahoma Statutes.
  • How the club does business, makes decisions, and treats members fairly.

Motor Service Club Forms

Declaration of Liability as Surety on Guaranteed Arrest Bond Certificates
Motor Service Club Bond
Motor Service Club Bond Questionnaire
Motor Service Club Electronic Filing Notice
License Surrender Form