OFFICE OF THE AVORNEY GENERAL OF TEXAS
AUSTIN
!?onorable Girard Xlaa.1,
-upenloor Ageat8' tioeorer
?i re Ianunno8 Departma t
Board oi Inruranor Commlsrioaerr
Au8tla. Texar
Dear Slrr
I) the above rtated
rtasat,
5 rOliOW8:
y coqmy ule
, both 8toak
808 ia !hll8@8,
r O88
l880888b
ompaalor for
cordlEg rgen-
by mid aCmipIaio8. Xe AUd8 the
n rfrort to jurtly 8arOrO8 th8
27 LnU, Art. 4758 (A8 UOnd8d,
p* 713, ah. 307, 900. 1)
e a company may aaoept buslao lo
Tesar rr0i2 an mu8t rile r0m1
agent, it aotloe
or appointmat in favor of th8 agoat. Tho lp -
Fainted lg8nt may, lo turn, lp lat rollolton
who autonatloallp, upon recolr f”ry their 1100n80,
hare authority to repnsrnt and produoo burlnrrr
ror @tory corpeny reprosontod br the 8ponrorlag
reoordlng agenay. In other wor68, a sollaltor
to M properly liC8Il8.d and authorl%ed to produo@
Hoaorablo Girard Xlnaey, Tad0 E
bWfa444 iOr 411 Of the r4OOrdiag 4gWICy’S OOUI-
panle18aredr only to have a for6al notlae or
appolatment fll84 la hlr behalf by one of tha
oompanlos reproarntrd in the agenay. Yhir plaoos
nur44roU8 ooapaler la th8 QO8itiOa or aaoeptlag
bU8ia848 ladlreotly rrom 8ollaltor8 whom they
hare not torally apwlatrd but who80 authority
to 8OliOit for ther he8 brsa granted by the re-
aordlng agent, who la a duly apyalatsd agent tor
tlla ocxiqmay.
Vhr Kacear agenay natup, on the other hand,
18 l8 OUtliaId below:
*Any rorslga or Out-Of-8t4t4 coa-
pay d8Sirilrd t0 4OCOpt bU8iM8S irCiB
an agent in Kansas aust rormally ap
point that agoat and pay a $2 re8 ror
tho llcen8lag thereor. fa Eansas only
on0 typo or llaona~ 18 i48Wd; that la,
a psrooa whore dUti48 would plaob him
la the category or a solicitor la Texar
1s llosnlred48 an agent in Kunras.
“our lnroroiatlo~cOnasralng requirenaatr
Uad4r th8 :ilAIl848 .C,tatUt44 18 baaed Oil8tPtOmtltl
made by rarlow Trxar a0qmay representatirrr who
hate explainrd in data11 regulations by which
they mmt abide upon 8nt5rlaE into the insurance
buslaees in icsn8ao.
*k:ooontaad that iaasmuoh a8 a Texas oom-
paay 688lrlne to do buein88s in Kansas la r8-
qulred to a,;;ly ror a Ilce~ee ror every lndlrld-
us1 imoE;whom it 6XgeOt8 to reaelve business and
mat pay a $2 tee tharoror aod who is prohibited
rroikacoaptlnE businors rr0; any individual when
&h;teaot licensed and for whom it haa not paid
thiv departsent 18 oorroatly applying
Art. 475E (ke azesdsd, Acts, 1925, 44th Leg.,
p. 713, ah. t07, i'ao.1) la aaa*rslag alallar
oraotloas agSln8t xaaras Companleo ror all la-
dlviduals in this state T&IOhold authority to
produoo buein8aS ror said Kansas oo~~paiss.~
Artiole 4758, Vernon's Clvll Statutes, as =ended,
reads as rOiiOW8:
Vhenever, b- any 1-3~:la for08 without
this Stats,
an iaauracoe oorpccatioa, fraternal
beamrioiary 8oolaty or roolprooal lx c M n6 e
0r
Honorable Clrard ?dnaoy, ;ago S
thlr State or agent thereof la roqulrad’to
aako any deposit of 8oourltlos thereunder ror
the protootioa Or ~~lOyhOldor8 or othorwl8.,
or to make payzioatr0r tax.8, flao8, penalt1os,
oertfrloater of authority, raluatloa or pollo1o8,
11oon80 fO48, or othorwl80, or any rpeolal bur-
den 18 irmpored, UrofitOrthan 1s r’rqUiSOd b7 tha
lan8 0r thlr state ror siaUar rorrlgn oorpor-
atloae or their lg o a t8, thr lnsuranoo ooffipBnlo8,
rraternal beaerlalrrry eoalstlrr and reclprooal
lxohango8 0r such States or gororuamt6 ahall
be and they--areheElby roqulrrd as a aondltloa
proardent to their tranaaotla..~ buslaon8 in this
State, to aako a like deposit ior like purpose6
with the Ctato Trearurer of th18 Sate, and to
pay TV the Coc!d8SlOnar& Ineuraaco iOr taxes,
fln.8, penaltier, oert1rloatos 0r authority,
valuation ot pollairs, llaearr~feet and other-
wire a rate oquai to such Oharge8 and paymats
imposed by the laws Of suah othor State upon
almllar aorp3ratloas of this State an6 the acents
t heroor. hay aorporstlon reruslag ror thirty
(30) day8 to take payment or such rO08 Or taxoa
as abziororor,ulrod shall hate its oertlfloate ot
authority revoked by the Conunlaalonerof Insur-
anoo; provided, thnt lasuranae aorporetloas or-
eanlted UUd8r the laws or any State or country,
other than these United Staten shall, a9 to the
~OV181OJl8 Or tr.ieAOt, be oonslderod OOQoB?L-
tloas of that State whorein their general daposlt
ror the benetlt or their polloyhholdors1s made.')
Artlclo 6056, Vernon*8 Clvll Statutes, provldos
in ottoot that sap person who oollolts laoure.-.oe on behalf
of any Fnaurcrros ooapany iu an agent oi t.he coepany.
:;o quote from Texas Jurlsprudeoos, Vol. 24, p,
Hoe, 40 r0u0w5:
*The statute8 also provide that an agent
rhall procure a license or a oert1rloats from.
the laeuranoe oomlsaloaer, rsgardlo~s of the
extent of ble authority, and whether the OOP
paay be foreign or dom8stlO. It is not aeo-
eaaary, howenor', to obtain a liaenso for oaoh
ladltldual oonipaaywhloh the agent roimseats:
Eonorablr Clrard .Unney, P3c-r4
Clanorally speaking, statutes 0r 8 retaliatory
nature, provide In 0mct that rOreigA corporationa ahall
be subject to the na.ne restrictlone, burdens, panaltIe8,
rto. ) as am laposad by the state of their oreatlon upon
aorporatlons of the state enacting the statute.
Artlola 40-2f.Oof the Yansas Inwmnoo Law re-
gardlng license for agente, reads aa rollma:
“Any person drrlring as an scent to anp.age
In the Inauranoo buaIn&s, aa hsrefn ret out,
shall rlrst apply to the Commissioner or Inaur-
aAce Of this rtate, IA the mAner h8reiAafter
presorlbed, for an Insurance agentle license,
authorizing such acent to engega In and trans-
act such business. Tha applicant ror such li-
censo shall tile vd th the Commissioner or Insur-
anoe hle c^rher mitten application for license
authorizing him or har to mAgage IA the Insur-
ance buslnees; and tha applicant ahall ;aake
morn amwera to such interrogatories as the
Conmlsslcner or Insurance nay require on uni-
form rorm aad nuppleaents.prepared by hI!a. Such
applicants shall be vouched ror by an orflclal
or rapres::ntatlveof the Insurance ompanp by
whom such rerson is authorized to negotiate or
lrrect contracts of Imiurance, eurstyship or
Indemnity or by a licensed Insurance aeent or
mch Insuranoa mnpany residing in this sthte,
setting forth: (a) That the applicant I8 yer-
sonelly I-nom to hLm. lb) That the applioant
har had experlenca or instruction, or will be
FIran Im~edlata iAdd'UCti@A IA Insurance. (C)
That the applicant Is of eocd buslneaa ra-uta-
tion an& is worthy of the license.W
Cnder the ‘16x e statutes, every Fe;-son Soliciting
Ineumnce aa a usolIcitor~ ror coarensatlcn fcr a duly li-
censed recording aeent of en insurance co3peny nust have a
liC.ASe. &lal-.ever,if hla cnployer Is the acent far 3ore than
one Insurance cxpsny, the *aolicItorw is not required to
have a license for each cozpeny represented by !iia -riACiFal,
but say solicit bualness for each Of said CWtWnIeS. Under
thr Kansas atstute , .4rtIclr 1c-210 and LO-252, an Insurance
co7paAy Ia required to obtain a liceme for each of its aPeAts
before aaId egent Is legally authorized to produce buelneas
y&t coqmny. The company pays a 32.OC fee ror this
.
. l
Bonorublr Glrard Kinney, Fare 5
It appeara thet thr Texge *eblIcItor’ who Ie
appointed by the recording agent to produce buelnese for
ell of the reoordlng agent’8 co3panIee will oorrespond to
the Kansae “agent”. The Texas *solIoItor” and the Kanrar
*a&entw do thr ear08 or ldantlonl work, naaely, aollclt~
lneurance on behalf of thr Ineurance ocopeenlee,and laoh
“a.grnt” muast heve a llosnes under thr law8 of said Statr.
You are rcmprctfully a:vIeed that It Ie the opln-
Ion or this department that the mnsar oompanles should bo
oharged a llcenee ree for eaah agent or eolIcItor who hold8
authority to 1:r~duoebusiness for said OOzipenIe8.
Trustlne. that the roreeolng ray 0mwem your
Inquiry, we renain
Yours very truly
ATTCRNgT GBGE?&. OF TEXAS
?Qdell Vllllase
;aaIBtaplt