I
THEA~TORNEYGENERAL
OF TEXAS
Honorable J.P. Gibbs
Comniissioner, Casualty Insurance Division
Board of Insurance Commissioners
Austin, Texas
Dear Mr. Gibbs: Opinion No. O-7067
Re: May the Board of Insurance Com-
missioners appoint an examiner
to go out of the State to in-
vestigate certain foreign com-
panies which are licensed rating
organizations and doing business
in Texas; if so, would the exam-
iner be llmltea to $4.00 per day
maximum expense .’
Your letter, which reads as follows, has been given
our consideration:
“An occasion has arisen ih which It has become
necessary for the Casualty Actuary and Title Director
of the Casualty Insurance Department, to go in person
to foreign states to consult with and examine Into
the affairs of certain foreign companies and IicenaeU
rating organizations, for rate making purposes.
“In connection with this and any similar occa-
sional situation which may arise, we desire your
opinion upon the following questlonsr
“I . May the Casualty Insurance Commissioner,
Casualty Actuary or a Director of the Casualty
Insurance Department lawfully make such trips, ex-
aminatlons, consultations and Investigations?
“2 . In the event of an affirmatlvs answer to
Number 1, would aald Commlssloner, Aotuary and Director
be llmlted to the $4.00 per day maxlnUm travel ex-
pense allowed by the present Biennial Departmental
Appropriation Bill (SB 317, Act 1945, 49th Leg.), 01”
would said parties be entitled to charge actual OX-
penses incident to the examlnatlons, consultations
and investlgatlons?
Han, J. P. Gibbs, page 2 0-7067
"For your convenience, we are attaching to
this letter certain statutory provisions which we
believe have a direct bearing on these questions,"
Under Article 4989 of the Revised Civil Statutes,
three or more persons may organize a number of different kinds
of casualty insurance companies.
Article 4998 of the Revised Statutes provides that
any casualty insurance company may be examined by the Board of
Insurance Commissioners.
Article 4690a of Vernon's Annotated Revised Statutes
provides specifically that when examinations are made by ,the
Board of Insurance Commissioners of domestic or foreign insur-
ance corporations, said corporations are required to pay all
expenses incident thereto, Article 4911 of the Revised Civil
Statutes authorizes and empowers the Board of Insurance Commis-
sioners to consult any rate-making bodies of other states for
the purpose of assembling data for the making of compensation
insurance rates.
On July 28, 1942, we released our opinion No. o-4289,
addressed to Honorable 0. P. Lockhart, Chairman, Board of Insur-
ance Commissioners, in which we held that the examiner appointed
to examine a foreign corporation which required him to make a
trip outside the State could collect all of his expenses from
said corporation and that after same had been deposited in the
State Treasurg, a warrant should then be drawn payable to said
examiner for all of the expense3 he incurred on said trip.
We think said opinion applies to examination of casu-
alty insurance companies and any and all Investigations made
thereunder the same as it does for the examination of insurance
companies.
You are therefore advised that the Board of Insurance
Commissioners may appoint someone to make these out of State
trips and collect from the companies examined the actual expenses
and that the Comptroller will be authorized, upon proper appli-
cation, to pay the examiner his actual expenses which he collec-
ted and which had been deposited with the State Treasurer as a
result of such trip.
Our reasons are stated in our Opinion No, o-4289, a
copy of which is enclosed herewith.
Hon. J. P. Gibbs, page 3, o-7067
Your0 very truly,
ATTORNEYGENERALOF TEXAS
s/ Geo. W. Barcus
Geo. W. Barcus,
Assistant.
GWB:rt
Enc. 1
APPROVEDFE3 6, 1946
a/ Carlos C. Ashley
FIRST ASSISTANT
ATTORNEYGENERAL
APPROVEDOPINION COMMITTEE
By WJF, Chairman
Untitled Texas Attorney General Opinion
Combined Opinion