66
OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTlN
Xonorable Wallaoo Hughston, Dlroator
;Potor Tranrportatlon Dlvlrion
RaKlroad Cozxnlssion OS Texas
Austin, Texas
Dear Sir;
b , Vernon’ a
d Civil Statutes.
otter or wae 30,
rtmont as to whotJ.wr
the riling 0r insur-
aaoo ~olloiee re d motor aarriera.
egulating motor buses
all, in the granting or
motor bus oompany ror
persons as paseongers
or hire, require the owner or
t procure llablllty and property
rrcxn a ooPlpany lioonood $0 make
oh lnsuranoo Qolloy in the state 0r
ing eaoh and every motor propelled
vohlole whlls aotually being operated by suah np-
pllcant. The amount of suoh policy or pollcles of
insuranoo shall be fired by the Coivnlesloa by gen-
eral order or otherwise, and the terms end oondl-
tiona or said polioy or pollolee ooverlng eald
motor vahlols are to be suoh as to indemnity the
applloant against loss by rbanon 0r any personal
injury to any perooa or loss or damage to the
property of any person other thaa the assured and
hi8 employees. such policy or polioles shall fur-
67
Hon. Wallaoo Hughston, page 2
thermoro provide that the insurer will pay all
judwnts which may be recovered against the ln-
sured motor bus company based on olalms ror loss
or damage rrom personal injury or loss ot or in-
jury to property ooourrlng during the term of the
said policy or polioios and arislag out of the
aotual operation or such motor bus or busses, and
such policy or pollclee shall also provide ror suo-
ooaslvo roooveriea to the oompleto exhaustion or
the faoe amount thereof, aad that such judgment
will be paid by the insurer irrospeotlvo or the
solvency or inaolvenay of the lasurod. Such liabll-
ity and property damage iasuranoe ae required by
the Conrnlsslon ahaU be oontlnuously maintained
in force on each and every motor propelled vehiolo
while being operated in oorauon oarrler ssrvloor In
addition to the insurance hsrolnabovo sot forth,
thoamer or operator shall also protect his em-
ployees by taking out vrorkeaen’a compensation in-
suranoo either as provided by the Ptorlauen*s Com-
pensat ion Laws of the State or Texas or in a ro-
liable insuranoe company approved by the Railroad
Convnlasloa of the State ot Texas. The ,taklng out
of euoh indtmtdby policy or policies shall be a
condition precedent to any operation and suah
policy or policies as required under this Aot,
shall be approved and riled with the Comlsslon
and iallure to file and keep auoh policy or poli-
oioa in forae and orfoot as provided herein shall
be oauao for the rovooation of the aertlfloate
and shall bubjrot the motor bus company so rall-
iag to the penalties prosorlbod herein.*
Likewise, Section 1% of Article Ollb, V.A.0.S. pro-
vides that motor barriers shall also make bonds or obtain poll-
oies of lnsuranoo covering personal injuries and damage to prop-
erty. That seatfon reade:
“Before any permit or oertiiloate of public aon-
venlenoo and necessity may be issued to any motor
carrier and berors any motor oarrler may lawrully
operate under such permit or aertlfiaato as the
ease may be, euoh motor oarrier shall Silo wlth
the Co~~lsslon bonds and/or lnwranoe polloles ls-
sued by sone lnsuranca company including mutuals and
., . .
68
cy)P.
UaAAaooHu#uton, pagr6
rooiprooala or bondi- ooapany authortrod by law
to trmnmaot buminrrm 18 hum in an -t to k
fixed by thr Comiamion undo rlumb mlmr ti ro-
alationa ma it uy preaoribo rhieh bond. aad
% muranoo pollolem rhll pro&lo that tho obller
thuoin will pay to tho lteat or tb ia00 w0tmt
Of muoh iMtU0~00 pOliOi. lBd bowA mu jUd&WDBt8
which mmy be romovorod lg insttb yltor oarrirr
oo ill- said 1nm~an.o polioler mid bonda, baud
08 01&u for lomm or bmgom froa poraoml in)or7
operation of mumb motor emrrior, ana
o f th elo tua l
lwh bond8and golioi;rm rkll alma mrldo ior luo-
oommltorooovorlra t 0 the mo8plmto lxbaurtion oi
the ior0 amunt thoroat and that lamb fudmatm
till bm paid by tho obl.i&er 18 mid bonds aa& in-
lu8moo polioior irroapeotiro ot the lolvoaoy or
lnmol~oaoy or tho rotor oarrlmr, prootided, bonta,
luoh bonds and polioier rholl not oovor por#na
injurier lumtmlnod by the lonantm, uonta or oa-
ployooa oi luoh aotor oarrlor. Provided further
that in tho lTent the IaudI mhall lbMdoB him
pornit or oortitioato and loato thm Btato, a olain-
a nt lmaertin( a alain *Ithin thm prorialona of
mad bonds or ~~lioima, uy film muit uainat tk
lurotlom lxooating rush bond or tb company immp-
Lug muoh pollolaa in a ooart of ooapmtent jurlmdio-
tiOB without tho BOOOSSity Or making the iBautOda
part to maid suit. Rovldod homer, that tho
comi uioa shall not roqulro fnauranoo owori*
loam of or hua60 to oar* in amunt orooraivo
for ?,ho ohu of lonioo to bo NBdorOd by lay
motor oarrier. 2ooh auoh &or oarrler l hll, 08
or bororo thr data or tho upintion oi tho tm
o ilay polioy or bond mo iilod by hir, fllo a ro-
newal thermor, or new boadm or polloloa containin@
tho am torn8 and obli6atioBm of tb prooodin# bond8
and polioloa ln4 lhall roh lrar thoromftor 0~ or be-
Soro the mxpfrmtio~ &to of tlu lximti bondamnd
polloiem ii10 luab renewal polloiom 03 bondm lo am
to pa&o OOBtinUOW mnd anbrokmn prOt.Stioa to tin
pub110 huh& logal olrirr a6ainmt suoh motor Oar?iOr,
SB~ in tho wont SUSh rwOWal bonds SBd poliolem are
BOt mmfiled, tho aorlaaion, mrtmr noti.* to tho
mtor oarrier, and houiau, mm~, w1thU it8 dimoro-
tion if it ahall ilad and dotexmiao that tin ondm ot
Jo&loo wlu bo bettor robrmod Wmroby, omnoel mlroh
petit or oortiiioato for railare to imrnloh and 50; lr
vido oaoh bonds or IBS~PMOO am huoln rOWrOde
HOBe WalhOo fiUghStOB, WgO 4
Eaoh seation rrqulrem the lnsuranor poliolem or
bond8 to be filed with the CornmissIon. Eaoh amotion alme
providad for the nrooatlon or ounoellation of ths permit or
certiriaste or oonvsnleaoo and naoessity for failure to ii18
poliolea or boada with the Coi;mniaaloa.
You deslro to know whether the Cotiaaion mq fa
110~ Or the filing of the original policy and aaadmento ao-
oept a oertitloate iron tho Umuranao company that a pol!oy
ha8 bera issued whloh contain8 a summary o? ltm prinolpal
roaturea.
In our opinion, the Co;Pmiasloa puy not a o o o p tlwh
a sumwry or oertiflaate, but should rewire the rUlag of tho
polioy itself la order that it may examine and approto it. Tho
whole policy of the law is that tha Railroad Conmission ohs11
determine whether or not the publlo la aooorded the protection
required. iCaoh statute expressly requires the ineuranoe poll-
oleo or bonds to be tiled rlth the Cournlaslon, and makes iallura
to do 80 oa the part of tha motor bus oompany or motor oarrier,
grounds for revocation or aanoelletlon o? it8 permit. The Com-
mlmaioa la aot authorized to waive oompliahoa with the plain
language and latent of ths atatutma.
Yio see no objeation, howo?er,. to apyrornl by the
Board of Insurance conmkisolonoro of a fern of rsnswal aertiri-
oste whioh will be furnished the Railroad Co~nmiasion by tha
lnsuranae company stating that the policy oa file with the
Co&esion, together with all anen&sntS t0 lt, bs beeen rs-
newed ior a team stated lB the tiertifi~at0.
Your8 very truly
JAS:EP