j i
OFFICE OF THE AlTORNEY GENERAL OF TEXAS
AUSTIN
Eon0rrbl.aQ. ?. LoolOurt , Chairman
Board of Insureno0 c'osloaorl
Austin, Torao
ideed your letter or
a as tci vhothor ar not
th.dolago:aalfA8aralwo
to ba onwof lamuwwo,
ds or la8uraaco aad furth-
of vhat statutoq protisions.
photostatlo copies or tha coatzset form
esse.ntialfoaturos of tbr plan dlroloors
that ageatr or the Fuwd Ohapel, derigaated am solioit~
agoat, take &ppliaalon fOF'qn rrbul~*-~onioa-oontnot,
vhonlatha rpplioalltmrr8t vo thdr m, a#* aad aIldr.88,
atatlag the aatura of q 1lfio18 sufiwed snd vhotlur hompl-
tallsod therefor vlthln ths prWlOUa six mtb, l.Sme !Tha
so,r*iao1s to bo mathrod for a period of arm pW Sfter aCWPt-
II~COby the corporation beginning from date of delivew of the
samlao-ccuimct to thw 8p&lcmt. The consldbmt!oa for th,
eervtco lr aa annunl crsh bus of Tbme Vollarr ()>.OO) pm14
;rrior to delivery or aaid em-vice-aoatnct with the *fleetire
ante be- the data of ita dolllmm,by the Chap01 to tM a~-
pllc8at vhl.10in good health md fm from tit0lffoats of
lnjurim.
In mgnra to the smvlce agreed t3 ba redored, the
contrAot provillor I
‘Sdd m-0 &OFV~OO ir to bs mnd*nd
oalf ln the olty limIta oi Ft. Vorth, l'e~~.
nn4 kxo1umively by Sh~nn~t~Funerd Ch~p018
snd that mid Ambulaaca Sorvlco la to ba
r ea b r o odnlyup o n
luthor~zntlen o f 0Aia u~a o d
phyafalnn or aurgeoa, uorS Fwrgency Ambu-
lanao Service In the arent of acaiduxt.
Ubotner n eantrmct lo OBO of lnrw~or la to bo do-
taufao4 br its purpoaa, rffect, contenta urd l.mpart. uwi set
nocossarily by tha tonrlnolo~y usad. Aad If ny ooa8tltut*
Inruraaoo If !t bo for oontrootam’a bonoftt 4nd a snotmet 011
vh’iuh mid oontmateo, in aaee of broach thwoof, rf lsert
a c*ua* 4r Action. tatloml Auto tkrviae COPD. ~8. Stato, 55
3. V. (36) 709, dJ A. L. R. :15.
ln 44tonsiaing ths qwstioa of vhsther th4 obntr44t
be mzuly for perrorul lomlcr or af &amuruaco, the rutlam-
aw
Itierlpwnr to lryport bT an&logy tfu vim t&t them vould
bs no dlrtlactloa botvaur P corporotlan orrely yruow to f'w-
ateh ft8 ovn ubulaaoo. ao fa cbr oontrat Farolrod urd g&roe-
fag to Lahmnl.fy or rrlmburs4 tlm hd4.r for losm W-6 In
h nvlub een lo r v.4b y ma nsta ulsa bslozqlng
o~ to a a o th eo ro )-
v-w*
Ttw414mmt8 ud r4quirlt44 gamnlly of a oostrwt
of Ia8wuso4 *a set forth %n 3; C rpus Sur’ia, ?ago 1395. an
a& Iollovst
"(1) A lbjrrrt mtter. (;) A rlciror
04ntlng4nC lnrund egnfmt u\d the duration
thoruof. t-5) A praafso to pay or to(yyI
in a firul or r844rtalrubl* aouat.
ooamfbemtl4n for th0 pro8180, knovp a# t.hS
mfum, and th p4rtad of paysant thonof.
to r r o o ting
PSI An lg no no a , o f the mind* of
the jnrtly, um ull the rc,rcgolJigcnavntlr~
rlorntm.
Ve c$ot. fraa 7g Am. SW., Pm-c. 3. Page 471
'nw o u th o r it~o * lPO wlaetantlal~~ agreed
that lMur8aoo guually may bo dofiord u on
lgwownt by vhlah m poraoa for a aoaelder8-
tloa pranioe8 to pey moaoy or lta oqui~alent,
or to porfom 8am 8et or raluo, to 0aoth.r 00
the brtruotloa, both, loo*, or 14ul7 az am-
080 o r lmthing by 89wrid Perllu."
u&er chapter 10, tit10 78, n1at:ng to gewlll arm-
rlty uomp8alea,Artlolo 4989 lf W St&tukr, lt ia prowl&e6
thet y three or mar0 por*ono, a njOritJ of alal am nsl6omtr
a tth.b Lute,ny lsaoai8te la locordmce with ltr prevloianr
cad iDmen lmoorparoteacw ror My oae armore oftb fol-
lowin# purporort
'1. to laouro up wraoa ogalMf baally
lnjlq, alaablemuat or death rut¶ltYJag
trw
uraibmtrad~laotai8rbbratnrultiag
from dlaeaae.
'0 . 0."
xt uloar4 rppeon that the burlnmr 9ro9eaed 80 k
eaabotea 8y the 8hulma hrrwnl awpel would omte em\motual
r lg k to a 6er r h ieh lppllaant
tb a orwlb*rr of tbmirfuli~r*-
aolw bueflto la the iem of value6 urri4e8 up08 tha mppm-
lag or urtaa eamngmnulu. mo nmlltloo or 8ervlur la thir
l.Mta8aoybeorm.oh wweautlon fo r lo 08 fr 88 a r ta t.6
lmt l
r o a dfly eo eo r ta fnmb le,la wo u l4 ‘b et2u paymeato f mummy.
Suo b la via esa~8vo ulAtn r uulemd tam&r8h 8oabtnot
in Qwr tla a la a 64 enea eua rbyy mr o n o f dio a h la mnt
no ult-
b g ha b e& la eldo nter dame. It ia t&la wnv w
thgenaf, that auab dl*ability vi11 not a0 ooekw withim t&-em-
tmot porlod. V&l&a r0lutLtutu tb ri8k 888umo4 w 8bo -@water
urb vhlah in our 09lnioa, beiag prlrrily a :-me of awl&at md
BMitb lnsumnao ruthorlmd to k writtax ia Uu forogoly 8tatute
w9lloabl*to caamlty oagurlea,rker tb IIswmaO oftb'pra-
908od aaotnot tba aoiag ot 8a inmwum l h u o lmo r a nd ultra vl.r .0
+m th e p o r t o r a a 6 r u wnl aorparotloa.
Ip I8Oh Cl6 VO ilad SumaFt inth4 uoo of Allln, flu.
c o n.vu. Motorist*’ ?!Plluue or Awrla. Ino., 734 XT. 71s. ng
Honornble 0. P. Lockhert, Psge 4
3. v. ('d) 19, 11 A. L. R. 6836.end euthorltlee therein cited.
The 9otorleta' Alllenco ol AtemIca WI) an Ohlo corporation
exltting by vlrtue of the ISUS of the State of Ohio vlthpover
generally to fumlah eccldeat and other aer~i~e8 to nutonoblle
OVIWN. The aaterlal faeture of its contrnot as lnrolved in
the o6se van th6t the company agreed in oaeo of suit, to emplq
(J. looal ettomoy. In vhoee eelectlon the holder of the contmct
should hate l volae, vho in turn. vlth the coe~eny'a attorney.
VCB,U~~ defond the caeo. urd to relieve the holder froa the ox-
penae therwf, en expense vhloh the court said rust follov the
hnp;.enlngOf the V6q OWXtlngenCy pMVlded egelnet. In hold-
ing the contract in controv6reJ one of lneurenao. elmllar ln
nature to that lnvolred in Phyalclan'a Defense Co. VI. Cooper,
Inc. cam.. (C. C.) 188 Pod. 832; Id. (C. C. A.) 199 Pod. 5'6,
560, 47 L. R. A. (I. 3.) 390. the court. rnther than follov
tho reasoning in thnt case. beeed ltr decielon on a etetutnry
provlelon declaring it levful for a company to vrlte lneurence
for the purpose. song Others, of insuring ovners of autono-
bllea against "much loeeos Se lrite out of the ovnershlp, op-
eration, or meintsnence of the wee."
It lpeolflcelly eppoara thet the oontreet here InVolvea
la la8ued 0Vor tho new of and as the set of a primto corpora-
tion organlted end oxlmtlng under the goner81 lav for the pur-
pose of wageglng in and oarrylng on an undertekFng buelneee.
The oontmot axproeely states that the contracting perty la the
3hannon Funeral Cha9el by and throu& Its Vice-Prmeldent end
Osneral Wanagor." In Vlov of this fsot. the Board of Insurance
Corrmlealoaem has no nuthor:ty to take eny prohlbltory ectlon
9thOr than to r6port promptly and in detail to the Attomey tin-
eml, ee'povlded in Article 4i58?,Vernon’s Annoteted Civil Stet-
utae, any Violation of lav lulatlve to the buelneee of lneumnce.
As to the apeclflc latter before us It vould reaSonably be ln
line vlth the dutler lnpoeed upon the B>erd by eeld etetute to
80 advlee the oorporet:~ in queatlon of Its oarr*ng on an ln-
aumnco buelneee ln vlolatlon of It8 charter end Should Said
COr~retlcm o.mtlnue to issue loah contrecta. report ln detail
4uoh Violetions to the Attomoy General.
Article 5'0~. Vernon’s Penal Code of Texea. IA part,
imovlcler:
"Any peraon vho shell act ne e life, health
or locident lneurenoa agent without hevlq Itrst
obtained e license es herein provided, or vho
shell eollclt life. heelth or nccldent l~bur~ce
9r ect a6 n l:fe, heolth or ccc!dent.agent vith-
mt :xv:ng been opyointod and ClcsiEnrtedby aomc
,.-
Honor8ble 0: P. Lsakhut,
ln8umna ec o mp a ny,
la o ldmnt
1neutnneeoompany. llfrn ane aooldent, bmalth ad
cccident, or life, horlth and aooldent lnmwanoe
company,or a88ooIatIolr, or org*nl~atIon,looal
8tUtUil a id U8OOia thQ, Ol’ 8t8tOVide mtUd l 8-
8OCiatlOtt t0 do 80 88 h8mb prwlbd, or MT
9umon vho 8hrll 8olIolt life, hulth or aoel-
dUtt fUtua nc 0OX’lt (I8 UI a@ttt for Ulr POP-
8,,,&Or iPr=0. 8m Or th88oOiati~ not
authorlrv6to do bwiAe88 in TOXa8t l l l,a8
h 0-b & UVtidOd 8ha11 b guilty Olp 8 ti8daUlCr
WI, UpOn OOfI~lOtlC% 8hd.l be find mum‘
not in lXC.88 of Fir. Bumlnd Dollarr "y
( 500) au
8hall b h8Zl-d frOr -OdVbtg a 11OOSk8e a8 M
lnutronce8gont for a perI0d of at lea8t tvo
(7) y8U8:
It 18 fttFth.rOPC ViOV that 8Uob ~r8OlU 8OlIOiting
thll tm of oontX=ot Vlthout b.b~&!110M0ad br tb ltpl~~~nom
Dsputmant or vlthout having bout duly aJtpolntodau4 do8lgttat.d
l@ttt by 8OT 001 Ol'loII Or thU 8JBOOFfid OWp M i.8, l8
di8-
olowd ln your letter, i8 aubj*ot the pmnlty to provldmd for
in Article 5701 of Vornon*8 Ional &la of tua8.
t In M8v.P to m requut. thOMfOF0, it 18 t& OPti-
itUt Of thi8 60-t that th. 8Olidting ti i88U4 Of t&
rrbolULCW8OWiC+O~tnOt de8Orikd OOlUtitUt.8 tb dOla( Of
aa W-0. bU8iSU88 a 8UOh aOt8, b.w titl'0 V1lW8, 8UbbjeOt8
8aid oorpontion to an lnqulry into it8 ohutu rlght8 W the
AttOl’Jle~ hmti Of TUa8 U&d tb tea Of rush a8tim l 8 VOUhi
ti lWOO88al7 8d PFOpr lULdCF hi8 OOIl8tltUtiOXld 8UthOrltJ.