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OFFICEOFTHEATTORNEYGENERALOFTEXAS
- AUSTIN
1;
OROVER SELLERS I_
ATrOINcvGLWcn*L !
I
Honcrablo Ri-ynn Bell, hector
&tar'TransportatiOu Dltlslon _I
amroad c~misfiion of Texas .
'r;:~in, Tcxos
Pear Mr. Bell: Opinion So. C-0770
A.
49th Legislature,
whether or n
of said Bi1.l , which relates~ to the fir-
nisbing of scia insuranoe pollciefi, reads as follows:
‘0 0 0. The Commissi0n may accept fn lieu
of t!lefiling of the origdna) policies Of fnqw-
anOar a certificate of jnuurancc, jn such form ,~
as :-0~ be prcsorlbed by the Cox--isdon, which
certlflcate, when filed ~1 th tho COmmlssionr
will bind the obllgor thereunder and satisfy .,
. .
honorable Bryan Boll - page 2
.I:
the rcqulrements of this seotion as if the :.
i
originnl pollcle5 of insurance had~ boon fil0a.n
TTndndor
the plain provisions of tho. above-quoted see- \
tion of said Act, the Railroad Commissi@n Is not rcquirod to 1
occcpt cortificatcs in lieu of the ariglnal policy but mny.do ;
"0. If the Commission aooopts a cortifioatc,of insursnco In ,
lfcu of the orlginsl policy, It mu& be In such form'ond con- '-'
tain such data as the Commission requires or aomnnds. Of
course, tho Convnlsslon oould not require ony unreasonable
condition to be contained in 5oid oertificate.
While your lettor does not reveal the fact, in the "
confercncc which I had with you and representatives of ahat -:
I undorstood to be some of the in5uraaco cOm?nnies, you want-
c:! to hnon whether the Railroad Commi56ion Could require tho
certificate to contain the provision set forth ‘In Form 8%,
that ‘~t.he csnoellatian would not take effeot 'until thirty
day5 after receipt of this notice by tho Commission', and
vhethor, if tho notloe of aanoellation conta~ined 6aid clauso,
it would necessitate ohanglng the provision in the ia6uranco
policlee to the effeot that the company could not cancel.*-the
policy without mailing a written notlco thereof not less than
thirty days before the cancellation would be affective.
It IEi our opinion that the Railroad Commission can,
if it desires, require thirty or Moore days' actuoi notice
.. 6here it has and does accept the oertifiaate fin 3ieu of the
orlglnal policy.
It ii further outi opinion that t.his wouP,d not in any
way affect the original policy of insurance; neither.~.would the
policy of Insurance have to ootitain Guch a clau5e.
The provision iu the polioy , as we undorst6nd 6W?J0t
Is that it oannot he cancelled without mailing a.rioti.ce to the
holder of the policy not less than thirty days.hefore the can-
cellation shall become effective. If the Railroad Commi~~lo~
has a certificate of insurance rathor than the. policy, under
tho Act in ~quostion it can roquiro the company to give the Con-
mis5ion aotual notico not less than thirty days prior to tho
cancel3atlon. In other words, undor tho law, the policy must
contain 6 provision that samo Cannot be cancolled un~tll'the
holder thereof, or the beneficiary named therofn, has boon
maifea a notioo not less than thirty days prior to its candel-
1ztion. This policy, however, Is not deposited with the Rall-
rood Commission; If in lieu thereof It aaoepts a oertificate, .
under the provision5 of said dot It aan require that f-t hnve
Ilsnoligble Bryai3Bell - p&e 3
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more than tho
thirty days' notice spoolfled In tho policy be-
furc knwcould bo cnncellod; insofar as it affootsthe Rail-
ibad Commission and those for whom it acts.
s:
As ae construe tho Act, tho Pam or the contents of
%he orlgwfnal lnsuranoo polloy doos not need to be changed from
the regular standard form used, If it Is filed with the Rall-
rood Conimissi~,. If, liowever,. the origIna policy Is not
fllod, then the Commission would have tho right undor the
statuto to require the insurance company to give tho Com-
mission full thirty days' actual notico before the polloy
could bo canoelled.
. Very truly yours
BY
Gee. V. Barcus
Assistant
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