OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
HmorrbY e George H. Bat1 or, Chal.rmnn
Board of'In aurence ConM asionern
~untln, Texas
mar Mr. Butler: Opfnlon Wo. O-7294
ne: nether under the aurrent apyro-
priation bill official remmeratlon
and expense@ lneident
of out-or-##tatalnsuur
may WI paid m
from the Inm
under Artial e
Your letter requesting
upon the ahora subjeot-matter $9
%xamlnrtlon nt 8n 0u
atatewn ts are at the end of
eaoh month and urinltthe earl7
part of the io ves some inconven-
ienae to the
fir& aoturlf
fore pyinft t ’a Artlal e 46QOa
th I.eg., Ch. 378,
r under the aurrent appropria-
eratlon and expenses upen
ale 46QOa lnaurred In exam-
aarue from the Insurance ~~amlnatlon
ed b7 the eramIner’ affldavlt and ap-
lrman of this Board, lrrespeatire of
nsumn08 ampan under exmlnation has it
that time paid the aaarued costs to the ~Xnmlnatlon Fund.
*The Insurance Examination hmd in the State Treamry
aonRtant.17 containa unused balenoes Of remittaneee from
out-of-&ate ingurers for the cost Of examination by thl~s
nepartment, conslstinp:of' 'the otber expensen of the De-
partmen t of+ Innuranae proper17 allocable to the examina-
tion,’ and represents the proportionate part Of the aost
of the general oterhesd expense of this Department allo-
cated to the various out-of-state companies examined-
I HO
COIY”*Ic*TIO*
>sTOmhCONSTRULD
*s ADl,ARTYINTAL
OPINIOH
“*LL,sA\pPIO”ml
a”THE
ATTOINE”
EEHERAL
oilFII1.T
Is*IsTANT
li+s, time to tj?su3it., b eOo mes Deoeseary far the
Comminuloner or hjr examiners to go &to another
ntato for aonfermces nnd lnrestigationa which are
no taoncpleteformnl exav:inatisn~of any one oompany
hut relate to examination of matter-e of a gmaral
nature aiieatlnA neveral or al? cmmanies In the
state alike- Xn such 0as~s it ir imprsatiaabls If
not IRpoasible to fair17 apportion sml asseas the
remunerutiou and axpsn,atr*lnnt the amwnies In
that state who are or may be affected.
‘Please &vi oe me wbeth5r th4 Cminslmer' IIex-
penses and the oxaainer'e rennmoratlm, and expenees
In aneh eases may be paid Pram the Iastmmae ExamIn-
ation Fund on the retaliatory basis provided In Artf-
efe 4BUQa uhan reriiied by the examiner’s affIdarit
und approted ‘by the ChaIrman of the Board, irrespeo-
tire of whether the aompanies Who ara er may he af-
feated are amassed few rruGhremmeratitm and cllprnse-'
fau s0aaupaa~ this3r6quest *it& a rerf fnll 8i~u~anlon
of the various statntan, appropriations , and departments1 onln-
ions relevant thereto, for wMah we thank mm+
Article &QOa (Rsv. OiV. Stat., Vemou's aodifieat3on)
is aa ro1tswsi
*The expeas08 Of all 9Xaminationm Of domestie
insuranoe aextp*niermade m behalf nf the 6tat.e ni
TUXSS b7 the chalram of tbe Board of Insursnae
Comdsaioners or urrderhis aathoritjr shelf ha p8id
hy the corporations examined In au& 88Mmnt as the
Chairman of the Beard of Insurance Coarmlnnlmers
shall oertlfy to be just and raanonable~
lAwmmmmtt for the expannse of such dontQIatic
exaWll¶atfen, rhiah shall he sufflaient. ta aieet 011
the expennee and disEbursementuneeassa~m to aampl7
with the provislo~a of the lows of fexsr relating
DAYthe examination of insuranae aompaniss and to
aonrplg with the prerfsicms of Otis Aat, shall be
nmde hy the Ch&i?man nf the Board of Insuran0e &m-
al.naieneroupen the onrporatlW* or ansoef~at%.ione
to
be exastlned ta%inp: &to aonoideratim annue3 prem-
lum Petreiptu, and/or admitted aasete and/W *na%ir-
anee in Puree; prorSded nrch a~s45~4nt5 f&411 be
made and anIleated OZIIJat the tine such examinn-
tlnns pro made.
%morable George BI Butler, Chairman - p@ge ~3
nAlX WRS aolleoted hy the Chairmen of the Board
of In wranae C0wd sdoners , or under his authorItyron
atmount of the 8oat ai esam~natlonn lssesseU ss here-
inabove prorldsd for shall he mid Into the state
Treasury to the aredit of the Insurance Examlnatlm,
hm%; nnd the salaries and expennee of the aatuarr of
the Roartl of Inauranoe Comlasloners and of the exam-
iners and aaslstantsr and al? other expanses of such
examiaations, ah811 be pa14 upon the oertliloats of the
Chairman of the Roar% of Insurance Commlasioners br
warrant of the ~emptmllor %ram upon suah fund in tbe
Gtate Treasury.
aIt at any time lt shall eppear that a%dltlmal
pro-rata laseasmmts are neoeasary ts uover all ai the
expenses and dlalmrsemsnts reqnireQ by law and neoes-
oary to oosply wltb this Aot, the same abrll tm rnsde,
am% any wlrplus arising from my and all mah aswas-
merits, over sa% above aush expensea and dlabursemmts,
shall be applied In reduotlau of subaeqttsnt aoaeaa-
menta In the proportion aosessed so that there aball
be so asseawd an6 eolleoted the funds newaary to
meet auoh erpenwa md dlabursaments and no more.
.Ia wae oi an examimatlm af a campany not or-
gaaiwd under the low8 of Tesar, rbetber suoh examin-
otlou 3.8ma& by tbo Texas autboritl.ea*lane, cm faint-
'17with the iasuranoe supewiwry authorities of motb-
er state or ntates, the expenses of sueb i3xaainetloa
%ue te Texan' part3olpation therein, shall he barne by
the aomvar~funder examination. Payment of suah ooat
nhsll be nw¶e by the sompen~ upon prea%ntetiaa of item-
laed wrlttee statement by the Clmlrm~~n, and shall aon-
slut of tbe examiners’ ramnnerat~im an% iixpeaaesl an%
the other expenws of the Department oT.lnauranee prep-
erly al.Ioaabl
e to the examinatlen. Payment shall be
mnde direutlp to the Chairman, and all mmey oolleate%
hg rmesmmt cn forefm camanies for the oost of ex-
fmiln8tim shall be deposited in the Mete Treamry by
the Chairman to the oredlt of the Inwrauoe Exaalnatlon
P’UTIQout of whiah shall be paid, by warrant of the
htata Comptwf 1er of Pablfc Aorta on +ouaber or the
Chairman of the Board a!'Inwranee hnmias~oners~ tbs
exrmfners' remrmeratlon and expenaecr in tbe amomt8
detetmlned by the method hereinafter provided, wbsn
rerlf'ledby their afiidarlt amd npproted by the Chair-
man8 and said money is hereby appropriate8 for that
I”
uonorable George IS.Butler, Chairwsn - page 4
parpew, tbe balanoe, i.fany, to remain Ln the Ineurr-
an# ?Sxasinatlon Fun% In the State Treasury auBjeat
tn be expmd,ed for the purpotmn as sre sthrr kds
plso~. there&n. FZxmltneru’ remunoratlon and erp6nsea
shall he the same as that which would ho paid by the
hams ntate of+ II oompoay under exam~natian tn persons
wnductinp the. examinatlOn oi’ a Texas eompan~r dad t-
told to do business In that Stnto. Sf there, be no
rebognlGed aharge for uuah se-ice, the &ainaan
shall tlx the remuneration and expense 8IloWanoe
of the oxamlners at woh reasnnshls f lgtve sa ho may
%etermlae .I
We eurreat approprlatlon involved la aa follows~
.siWw tbe purpose of payiag tbo rorogolnffexamh-
atian apenae and aueh add3ti.onaler suppl,emobnt81 ex-
penw 8s is neoeaary incl%hlt to examia*tlon or ln-
wramw wmpanlen doalalled outside of Texas, and for
defraying all other i!ixpauasa neOeasary for the adrin-
lstrafion of tbe provisions a? Chapter 1BS of the den-
en1 Iaws of the Regular Sesalrm of the Forty-a4aond
I,eglalatureend Chapter 264 of the 0envx-d Lawe of
the Regular 156~~141 of the Forty-BDllrtb f.eglslature,
and any an% a11 amedmtuttu thereto, and se rmen%e%
by Rsnate 1111'1 a67, Aata a? the Replar Rea8iCm of
the ?erty-Mxth lJegislaturer18311,there is he-by
lp p r o p r la ted
all feesand lswswemts aolleoted a-
dar latbotitp of said Rxamlnlng Law, such portion of
tb6 fess oolleoted under Artiele .lRmM Aata lW39,
Forty-Bixtb T~:egislrturer 6. Bb 104, as may be trams-
tsrrd by the Life laauranos C~lasinner, together
wjtb oaf balaneas 8t the end af a preeeding fiwal
year for each of the l’lwal~years endlnc August 31,
19/F,, and Augast 31, 1947.'
In the course ol Your ecllansnts p err:
l* + e. The Cnaptrollor has eallod our atten-
tlm to opinion n-4280 above referred,ta and has a%-
vised Q* that collection from the out-of-stst* oom-
psnlea aa@ preeeda paymant ta the exsminor.
gAptla10 46R&1, aa amended by PBnSte Bill -7
ot the 4Rth Xegis?aturo, @rOri%en in park 'e . l
and all money col.leete% by assessment on ia~8la,
companle~ for the cnst ai” etamlnation shall be de-
~oitodlnthe Btotofreo~b]l the Obolnuo to
tbo ered~t af tbo Inslroneo Bxominotion tund out
o? utiiebho11 bo pmid, bT rorroat of tbo Stat.
Comptrollerof Publio Aoommta an rouohsr ot tbo
Cboimon or the noord or 1nawoaoe Cam@lSOioner8,
tbo a8wtinoro’ cm8morotlon 8nd upenneo in the
amounts dotermlaod by t&o nothod her~inrikr pre-
ride& whoa rerif1.d b y th o lrlitld8rit mad OQ-
prored by tlm Cbolmon 1 mad uid *enor lo borow
op*roprioted ror tbot purpO00, the bolama, it
may, to remoln ia tllo Iaaroa0. xxomilJotlen mad
la tbe 2kte Tswoaury ~nb jeot to be upaadod for
tbo purpouo 80 ore other fundo pl,rrsod tltoreia.*
The •8ab~ in to be paid OUt Of tbo m &o dir
tiasplished from out of the l0torli m0n~ paid bk
tdm eplllab7the iaurmloo eompony* A11 moaiao ia
ore o,pproprloted apo8itloollyror that pur-
~09% io tbo cboim'o de7 to oolloct tlw
unto rrea the smounaae eompmEy. men he o&g*
tb@ -a~#OP’rn ~OUOhhir Oad @ppOT@o aA0 OmdOTitb
be d&ii*0 thot eol1eoti.m or tbo usrats obom
en the ltthlorit boo eitbor baa mod0 tron the in-
uromuo mamony, or that the Caaiodoaer la tbo
dloabrrgo 0r h$o dut10a till eafloot it.
'It ia utaltted that me long no tbem.ora rmi-
floiamt menho in the lCxomtlnotlon ?@nd to pot tdw
uomlnor'o ~asshar.it io the duty et the Cb&raon
oleno to oee tbot the aoot fm oello6ted !‘reu the
uotniaed akmjvony. ond tbot it to not the duty tiP
the @omptroller,md sorreopandt.n@~ net bio pro-
rogtiro, te ge bobbindthe Cboim 8 OppFoTol at
tb0 uodnbr* i +ouelmr ma rtCidrrit.*
We or0 in ooeord with your 86noluodtmot&w wrpreoa-
ed, rblob it follewo that faur queotiona sboald be anber-
frem
edin th elmr o r o fir o . It i II tbe Immmmee %matlaatSm Rand
that 1m opproprimtea for pomont of the ex~oasao lnvo?rod, and
not the ooxiponont port8 or tbot itmdr to be derived fromthe
porM,oalorummluotioa or uomlnotiaaor MI oeaaunt of whleb a
alain lo preoented.