Untitled Texas Attorney General Opinion

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