OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
fionorable Yl;rvin t&L, Co3dssloaer
Iire Inpurnnce Xvislon
~0d or I~~USE~OS Ciommi~oi~n6rrr
iiuotln, Texts I
larfed raleemn
d aq3loyeae of
er-lnnurance
prlaolpal work
r in0urtm00 rrm
lly, are reqolred
der hrtioles 5035
1043, requeetlng t!m opinion
n at&ted tharoln reads aa fol-
sxchmge tire exe;yt frou aacurtag Ucensea.
*tie have had nu:~ierousco:pplaints Oeceusa euch above
deacrlbed representatives solicit tind sell Insurance
wtthcrrltbelnej subject to the smae regul&tiona acd re-
qufrezmnta aa prescribed by law for other tnsurancs
a@xlto. It t&is besn our prcretioe to rsgulrs tepreeentu-
tires of e rtml~procal eroh:mp,e *ho sollait and sell ia-
wrmc~ to the .xblia i:anarullyto be licensed under
,,rt:cla 5GGS.
*In 1939, the0 aro.ae itie cjuaetlon of llataaing
repre8or&xtlro8 of Lloyda. In thl.8 oan , the rope-
lnfmtive8 .were be8ipLLr+ted a8 6eputy attorR#8-b-
iaot, and they clalao4 exaaptfon Srom being licensed.
Tkio que8tlon wa8 8Ub5dtted to you, and OpifdoA No.
O-1010 n8 renC~rodon June 97, lt)OQt&t 8uoh deputy
attorneya-Lain-ractwre required tg be 116ensed.
"'IQ OoU8ideriA& tht8 qW8tf0A, Wb r~8PWbtiUily dir-
8ot Jour attention to an oplr;ion writton ln 1931, a
QQpf of whloh i8 hereto 8tta0b0a. We au0 Invite your
aonaiduatlon OX Utlcla 5066, 8eVi8ed %RtUtO8, end
rrtlol# 578, Penal Code. It i8 our praotloe to 188uo
a o*rtltloat*for agent8 wfm 40 not Irrllolt iFop the
publio generally but whose prlnslpaldutie8 are over-
8eeln(l a@ ~upervlel~$ thr aetiritisa of 8gent8 rolioit-
L~&&~pom the publics genarallt ar outllnadla Artiole
*rlrsMtore, (18 8ubipit tke tollowine quertlonr
I
nraM dimet Mhrfed UIiOlmO or direst
mlaried en1plo~ee8 of rociproaal or Inter-
bl8llrWlOe WXChUfl$OS UhO8a &'rfZlOi~l Work
la 8OlfeftatiOA of fA8uxaAa~ fro5 the pub118
geosrally, repuirod to & lleenwd a8 provldbd
uadu etiaIa8 5085 aa& 50885, of the Rerilred
citil f%atIltOU Of %Xf38?'"
titlcle 6055,Vcrnoa*8 iicmotat*d C&v11 Statute8, provider:
-It 8haU not bc lawful ror any pamon to lo t
with inthir iitorte,a8 agont OF otbrrruiao, 10 8ol%oit-
lnfj or recofvin6 6iqlic3tioa8 tw lneuranae 0r ant
rlri@ whatevor,or in any mwmwto aid la tha tran8-
actioa ot the bueineea of any ineurunce Oom&xmf imOoT-
porated In tht8 3tipt.e01 out o? It, without first pro-
curing (Y oertlflcsto ~of authoH.ty from th Coti~aloaer.w
Article 572 o f Vcmxon*s l
notsted Penal Code, mite8 it
a penal ofrenee for oag iadlvfdual to aollait fn6ur~~cl in behalf
of any lnsuraaoe cornyany withouta oertlilonte of ltuthorlty to
I
sot ls o(Jcmt or oolioltor for ouoh oop~p&a~,of after lwh oer-
tU$crte o? outhority ohaL have boon oanoelled or revoked.
hTtio1e 8088, VoruOn'o Annotated Clri1 StEtuteo, Qroriaa6
lo ofroot that any psroon who 6ollcito %nouranooon bobalt of any
~~OWXICO eo mp wy 1 6ln & g e nto f the GOSQ~O~. Oo a sr a llyopak-
ing ,
th o lubotantiol pro~ioiono or hrticlo 25086 en 0ontaLned in
Art1010 568, VernOll'6 AmQtatod Penal Coda.
&otion 8 0r krtlole SOobpb,Vemoa~o Ann.:tated Civil
6ofiw~ the term6 -looal rroorbln&
Statutes, omng othcrr tRlnll;a,
a@c+sut*
and *oolioltor.* Section 4 of raid Otatato p0eae0:
"It oh11 bo u6laWul for any perlon or fifl or
partnerlhip t0 aOt a0 a tb061 ~OOOrdia& Agent Of
f3ollaltor in proourln4g buoiaeoo for aoy Ia6uroaoe
Company, oorporatloa, l.@8+ln8umfse4,oxckmn~o,
stituole B001pro661, iUOQ6i6t~OJ%,UoyQo or othor
Xno~anoo Coalem, until ho ohall hare ln for80 ttm
lloonue ;Irsrl~od for heroin.'
36otlon 913or 66lQ 6totUt6 (806tb) ~mrlQe8:
'Wo.prwiaioaoi thia irotohall apply to tm Llfo,
Health and Acoidont Snsuranae bwlnooo or tte Life, Realth
and daldent 2ep@tmemt of the oomynleo ong'l&& therein,
nm 63awsllIt apply to 6nl of tbo followLag, 3ainol.l;
"(a) rin~ notutbl full-tim bum 0rrh or oal6irl4.rd
trerellag ropr6sentotlveo of ong In6uranoo Carrier ll-
oehood to 80 buofnooo in Tern@.
*(b) nay actual attorney in faot an6 it8 actual
traveling 6alar16d reprsoentutlre EB to buolneoo tram-
4Ot6a through ouch attorney Lo.ieat or osl*rled repre-
oentativo d any reolprocul esobon5o or lntffr-laeur5noo
%XGhali&Oa&aitteQ to do buslnooo in Tsmo.
Inview o r th e
l*alflo lronptloa eent4lnd In 9eotioa
W,~~o quotedabove, it lo our opinion that hrtloleSOUS, Voraoa*o
am&it&i Clrll datuteo, mA hrtlelo 918, Yorrum*o .uuwtatod i-‘enal
Code, have no application to the quoation uuder oonofderation. It
10 OUT Surtceropinion that in rf*W Of mai4 Seation 20 tbo oalor-
100 aalooaea or oalarle6 lmgAoyeeo o? reolpracalor inter-lnouranor
lro&eagor are n6t oobjeotto Sootion 4 oi Art1616 556pb althoirgh
their prlnolpal*or& 18 8ollolt2ng inouru~oa rrom the pub116
gonerally. Stated another war, it lo our oploloa that Sootlon
SO lxvroooS~ lzoapt* horn tbr prorlolono of the fo r e g o ing
ltatutso
thubo poroononaord la luboootlaa (a) urd lbsootloa (b) of Z&Q-
tlon 20 of aald utlolr. %erefOxe, tEe que+tloaam quote& @hove,
10 ro8peotiully anowered in the aogatlre.
Your0 verr truly
ATl’GRUfE~5ElKRAL OF ‘r3S~9
&ir&?fddL
,~~
_,_,
A~; .:,le...e.;:L BY
ArBell ~llllmo
Xoolotant
kJ(:&I?