THEA~~-oRNEY GE=NEKAL
OFTEXAS
GERALD C. MANN
m-X=
AITORNRY GIGVBHAL
Honorable J. P. Gibbs, Commissioner
Board of Insurance Commissioners
Austin, Texas
Dear Sir: Attention: Mr. Vestal Lemmon
Opinion No. O-3105
Rer Can the Transportation In-
surance Agency of Dallas,
Tbxas, legally issue a certi-
ficate of the type set forth?
Your recent request for an opinion of this depart-
ment on the above stated question has been received.
We quote from your letter as follows:
"We are submitting herewith a certificate
of insurance written through the Transportation
Insurance Agency, Dallas, Texas, issued to
Chester Cotter, Campbellton, Texas.
"This certificate evidences that cargo
coverage is afforded in an amount not exceeding
1,000, and that public liability for $ ,OOO/
10,000 limits and property damage for ?I
%g 5,000
limits are afforded on a certain tractor and
trailer combination automobile. This dcpart-
ment is not concerned with regard to the cargo
coverage, becaue~e we supervise neither the
rates nor the forms in connection therewith.
'The records of this department reflect
that the National Mutual Casualty Company of
Tulsa, Oklahoma, which company has been duly
authoriged to write automobile insurance in
this state, is affording bodily injury and
- .
Honorable J. P. Gibbs, Commissioners, page 2 :O-UOs
property damage liability insurance on this
same ccnbination automobile unit under policy
No. T-7770, which has been countersigned by
the Transportation Insurance Agency, Dallas,
Texas. This number is reflected in the cer-
tificate hereto attached.
"The Board has heretofore prescribed uni-
form standard automobile pplicy and endorsement
forms consistent with the provisions of Sec-
tion 5, Article 4682b, Revised Civil Statutes.
The form hereto attached has not been prescribed
and approved for use in connection with the
writing of bodily injury and property damage
liability~ coverages in the State of Texas.
"The Transportation ,Insurance Agency has
been licensed as an a,:ent by the Board of In-
surance Commissioners to write fire and casualty
business in this state. This concern has not
been authorized to act in the capacity of an
insurance company.
"'We respectfully request your opinion as
to whether the Transportation Insurance Agency
of Dallas, Texas, can legally issue a certifi-
cate of the type attached."
Section 5 of Article /+682b, Vernon's Annotated Civil
Statutes, reads as follows:
"Sec. 5. In addition to the duty of ap-
proving classifications and rates, the Corn-
missioner shall prescribe policy forms for
each kind of insurance uni~fcrm in all respects
except as necessitated by the different plans
on which the various kinds of insurers operate,
and no iqsurer shall thereafter use any other
form in writing automobile insurance in this
State; provided, however,tiat sny insurer may
use any form of endorsement appropriate to its
plan of operation, provided such endorsement
shall be first submitted to ar&+approved by :
the Commissioner; and any contract or agree-
ment not written into the application and
policy shall be vQid and of no effect and in
violation of the provisions of this Act, and
shall be sufficient cause for revocation of
license of such insurer to Write automobile
insurance within thia State.'
_ -
Honorable J. P. Gibbs, Commiss,ioner, page 3 O-3105
The last paragraph of Section 1 of Article 4682b,
provides:
"Motor vehicle or automobile insurance
as referred to in this Act shall be taken and
construed to mean every form of insurance on
any automobile or other vehicle hereinafter
enumerated and its operating equipment or
necessitated by reason of the liability im-
posed by law for damages arising out of the
ownership, operation, maintenance, or use in
this State of any automobile, motorcycle,
motor-bicycle, truck, truck-tractor, tractor,
traction engine, or any other self-propelled
vehicle, and including also every vehicle,
trailer or semi-trailer pulled or towed by a
motor vehicle, but excluding every motor
vehicle running only upon fixed rails or
_~ tracks. 0 *'
Section 5, Article 4682a, supra, impos'es upon the
Board of Insurance Commissioners the duty of prescribing
uniform policy and endorsement forms for the writing of all
classes of motor vehicle or automobile insurance as refer-
red to in the Act, in this State. The Board of Insurance
Commissioners in compliance therewith has prescribed stand-
ard policy forms including statutory endorsement forms
for attachment to policies covering trucks, buses and
other motor vehicles operating under a certificate of con-
venience and necessity from the Railroad Commission of
Texas.
We believe that the fact that the policy or
certificate affording bodily injury and property damage
liability insurance on the same combination automobile unit
under policy No. T-7770 is immaterial, in so far as it
Honorable J. P. Gibbs, Commissioner, page 4 O-3105
affects the duty of the Board of Insurance Commissioners
of prescribing uniform policies and endorsement forms for
writing all classes of automobile insurance in Texas.
Under the facts stated in your letter, the Board of Insur-
ance Commissioners has not prescribed or approved the
certificate of the type attached to your inq,uiry. We
believe Under Article 4682b, that the Board of Insurance
Commissioners has the legal right and authority to prescribe
and approve for USC such policy forms and endorsement forms
as may be determined by the Board in the exercise of it'$
discretion. As the above mentioned form has not be pre-
scribed or approved by the Board, it is-our opinion that
the Transportation Insurance Agency of Dallas, Texas,,
cannot legally issue certificate of the-type attached
to your inquiry.
Trusting that the foregoing fully answers your
inquiry,: we,are
Yours very truly
ATTORNEY GENERAL OF TEXAS
BY Ardell Williams
Assistant
AW:GO/--pam
APPROVED MAY 7, 1941
GROVER SELLERS
FIR,ST ASSISTANT
ATTORNEY GENERAL
APPROVED OPINION COMMITTEE
BY BWB, CHAIRMAN