WILLIAM DONALD SCHAEFER, Governor                      Ch. 11

necessary to enable him to determine, in accordance with the
provisions of this article, whether or not a certificate of
authority should be issued to the applicant. It shall be executed
under oath by the applicant, or if other than an individual, by
an authorized officer of the applicant, and the information filed
with the application shall include the following:

(4) A copy of its service contract, the terms of
which [shall not] MAY NOT:

(i) Contain inconsistent, ambiguous or
misleading clauses or exceptions or conditions which deceptively
affect the risk purported to be assumed or the service to be
performed;

(ii) Contain any inequitable provision or
provisions without substantial benefit to the member or
subscriber; [or]

(iii) Provide for the payment of fees which are
unreasonable in relation to the services agreed to be performed;
OR

(iv) Offer reimbursement only, unless the
contract clearly states that no road service will be provided.

DRAFTER'S NOTE: This corrects antiquated language and
corrects the misplacement of a conjunction in Article
48B, § 3(b)(4).

Ch.. 369 of the Acts of 1975 failed to move the
disjunctive conjunction, "or", when it added paragraph
(4)(iv) to Article 48B, § 3(b). The antiquated
language was contained in Ch. 473 of the Acts of 1971.

The misplaced conjunction was noted by the Michie
Company. The antiquated language was noted by the
professional staff of the Legislative Division of the
Department of Legislative Reference.

4.

(a) Within a reasonable time after an application for a
certificate of authority is filed, the Commissioner shall issue a
certificate to the applicant unless:

(1)  The applicant has not met all of the requirements
of this article; [or]

(2)  The applicant does not, in the judgment of the
Commissioner, have sufficient financial responsibility to engage
in business as a motor club; or

- 235 -