OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
:Snmablo ii. I.. Thoarr, iQ+esident
iio.xd cf tiegent
Atdts Teachers ,colleger of ToFox-
Allao, Taxar
2ear .iirr
Tour letter of J
0rri00, roads 08 r0uons:
slon to oLeok into this &roup pollay
ooqlainte registered by tbs. prod-
our c0114g0a. Dr. Zircn iii. hhitloy,
t Toxos &at0 Texherr College at
not Batisf~ledwith the favorsblo~raport
ag one or his bollerr and hlred e pluntber
who diooorersd that the boiler In ques-
tloa was la e rather preoarious condition. Dr. il. x.
Xoreloclc, ?residmt of Al KOUJ 5tst.e Teaobers’ Collqa
at blplno, sent me a CO?J of a letter Monday which 380
realed thet 3!~insgeotlon scrvica had not been a&tQS@Elt!ler
eatkiiaatorg.
*You zay be Interested to loclrn that tb4
Cezieral Inauranco C0ai,iany of ,:zarica has subsltted
a 3rosd 9ors polIc7 at 8. sao,ller rrte than we are
now ohrlxgad by the %rtford Coa?an7, even though
this latter Coa?ahy IS 1I:iited In Its proteCtIon,
aud in a great .no~y instacces, .Lheir deductibles
would xuke It Is~osslblo for us to zvoover losses
razglng under ~l,OOO.GG In some oases and uober
3500.00 In many othora.
‘This matter wasdlsouased wlth Judge Zeaver H.
3akor on sy reoeht trig to Austin, and his letter re-
ceived today, states that his Uepsrt.r.tat*s appraIsa1
of the General Insurmc4 Coa?aoy oi Aerloa Indioates
the cosgauy le solvent and reliable .~ In f Ict, Is one
-t the outstanding oom~anios In our tuition.
*Judge &ker suggested thnt before treriatarrlng
this Insuranoo to the General Iosurauoe Company OS
&erioa, that I ‘ascertsta whether or not tha BoarU
of Alegents has the authority to pay the prasluu!.
This question was Introduced due to Locate Cococrrent
iiesolutlon No. 3, kots of the 31th ;eglslsture, Ssooad
Called &ssIon, Whlqh 1~ 4ifeot, prohlblts the purohise
or fire inwroaoo upon buIldIuge and contants belong-
Isg to the Xste aud Its ~rarlous InstltutIons, exoa?t
the Unlvereltg of Texas aad Its braaohos.
*Bowever, Zud&e Sellers, this policy 1s temcd
‘3oIler 5xplosIon and i:ersonsl LIabIlIty Inaurauce*
rather than rlre Insurance protection on our buildings,
aad since the policy was issued February 13, 1943, Sor
a serlod or threo years acd preslun payuents hare el-
ready been made, It seem?. tirrt it would be parziIssIbl4
ror the 3o.zd to have the above polloy oauoelled, uu-
earned promims retusded, and 91&a the >roteotlon wlth
ths General lnsuranoe Co!npaBy of knerloa.
4”Zhe preniuns 011 the hrtford Steam BoIl4r policies
for limited coverage for a three ytnr terzn are trl.,SSS.SO,
whllo the Bread Fona policy subaiitted by the General In-
mrai?c4 Companyof Anerioa mounts to $1,555.00, whioh,
as you will observe, gives us greater proteotlon for a
s.miler 9resIusi.
-.
120
iIoaorJble ii. L. I'hom.s,, k:ee 3
"It la zuy reaomendatlon, since the present
protection is ln3d.equat.e at euch a hi& rate and
nenlce hei not been satisfactory, thnt thlu busl-
nee8 be transterred to the General insurance Corn-
pany oi .&aerica, and I would like to asaertaln lf
there 1s any r&awn why thi8 azy not be done.”
The first matter taatthl8 departmit m8t deter.ol?le
ln order to anmer your quhtlon 18 whather the said Te-1ahers
i;ollege8 hive the authority in the ilrrt place to take out and
hold suoh lneuranoe polioler on their hollers.
In Opinion No. O-1100 issued from this de?art?ent in
1939 to 0. pu, Stake8, Cashier, Tera8 Prison System, it wa8 held,
mng other things, a8 follow8:
WTh18 otiloe on February 14, 1939, in Opinlqn
No. O-201, held that the State 3okerd of %althwas
unautharlzed to h8UrO iitat.0~ property ln it8 po88e8-
-8lon~agnln8t 1088 by fire unlees a 8peOifiO approi
prlatlon hsd been aade for that parpose.- Thl8 opl,nlon
wa8 hottoaed upon the projxmltlon thst the Le&lslgture
bud ln demte~conourrent Resolntlon Xo. 3, passed at
the sqoond oelled cession of the 37th i4gidlature, de-
'olrred lt to *be the rlied policy oi this atate to
carry it8 o%n lmiir?nce upon pub110 buildhI& and eoa-
teht8, and that no lnauriurce pollcleo shall be taken
Out upon any Of the pub110 bulldln.~ and Content8
thereof l * ** Oplnlon No. O-842, dated lda: 25;1939,
hold8 that the Comnl8elonor'of Agriculture ha8 no au-
thority, in the absence oi a 8pSCiriO appropriation for
8uoh pWpo8e, to pay the preeium on a fire or casualty
in8UranOe polloy 188Ued on oertaln liv88toOk owned by
the Aate. An atallrrble lrpeoltlo approprletlonto pay
the'premiua on any kind .or a polloy isoubd in favor.
Of the State uould araoant to a Irubrequent deoleratlon
of p01log by the Leglrlature end would, to thst extent,
repeal the plfog announoed by the l98OiUtiOn above
referred to.*
Eonoroblo fl.L. Thomas, P%e 4
In Oplnloa Xo; O-l81 lroaod Ey tbir d0pUtmat ha
1939 to thi Honorable Oeo. H. Sheppard, Coovtrollerof Publio
ioOoUnt8, it Wa8 held thntt,
..
We are not herelzkdeolarlngthe purpose8 for
whloh a departamnt mny expend lta ooatlngeat ttUId8,
but in the amtter 0r inrunmo rlaoe the polloy 0r
the State ha8 b een lxpreoeed bf th0 &gi8latwO, we
do hold that in the abaeace ot'e rp0oltlo lpproprla-
tlon for tbat purpo8e, you ue not aathorlsedto
i88ue *arrange ror the p4fsbat af inrurano* prehlaa8.*
In Oplnlon MO; O-3000 to the Eonocable II.- A. Tu&er ,
deoretary, Board 0r hgsnt8, State ~‘te.zio~m Collegrr, of datr
~r8brI&rl 6, 1941; 8 OO?y Of 8&I- b&g rtt8ab6 hf?Pm, it Wa8 .
held:
*Thlr drpsrtiwmt ha8 repeatebl~ ma that no
iamranoe polloler rhall be taken oat upon an7 ot
the pub110 4a11dlo~ Oi f&l8 State, uor upon the
.oontsntrtharrof. Tk r8mon for thlr holdlo& 18
etated .lnour OplnlomBo. O-164 ad 0401, ooplrr
or rhloh are lnolo8ea tar four lnforme~lon~thsm-
rare, you are advl8ed that the preafum ror rlre
lnouranoe, or boller lnouranoe oanaot '%epa out
of the loos1 oollege rund or aol other fUd# mm
the oolleger.*
.
Upon Oereiui ln8peotlon~olC the approprlatlonbill in
regard to raoh eolkger a8 named hereln for,the ye&k beginning
Septeder 1, 190 aud ending aogo8t 31,. 1946, 41 oontslned la
the Oeaeral and Bpeoial Law? Of Texao, hot8 o? the 48th Leglr- .
l&we, Regulkr Samloa,‘we find oo rpeolflo~approgrlatlontar
the porpoee of pay1n.gholler lnauranee premiaw or perroaal
llablllty lanruranoe promlaa8. Therrrore thlr department mist
agala hold that a0 ruoh ia8urmOe poileje8 rhall be takea out
by the Tersr Stetr Teaobr8 College8 ln qaentlon.
i
Wo will not here 60 into the sabJeot'a8to what
aotual beueiitr 8uoh'oollegor of the State would derive irom
8uoh polloler, ii ailowed to hold 9a,sm,a8 we do not hare the
laouraaoe polloles in Que8tloa berore u8 iOr Iarpeotloa. ROW-
ever, we rlU rd8r yoa, ror jour owlslnformdlon, a8 to tho
worth of 8aaa to Oplalon Ho. O-llO0, part8 oi rhlch le q uo ted
herelrkbovo,,and. to a sopp1eAeo.tto #aid oplnlo~, eople8 id
uhloh a r e’
lttaohd hereto.
I& .tleu oi our tulin6 hereindove, it 18 obvloar
thi+..aOt ha?&5 &+Or$t~ t0 take and hold the.flirt polIor
oht.
$I% qUb8tiO@4 8&d OOu8gl8 r Oa l(
UOt
Lh r vo
ltithorlt~ t0 Oh8060
to lnotheP~pol10~of. 9 dlrruont OOLI@BQ~inmrIa& the 8%~
rubjoct matter.
.
Sn. @grd .to JOU~ troublba ia obt9Inlng proper in-
.pbOtiOXlOf the bOilW8 ti SdOr'fM l6aio t0 the 8Uppl8SlOnt
to ouz Oplaloo llo.O-&O, la uhlo attention li,oalle6 to tho
raot that the’tabes Comml8916nerot Terar'lr ohnrgedylth the
rO8J?Ontibfiitt Of haVla6 all bOilqr8 ti TOX&8 Uqaootod at
oortala bh88 or intorvel8, 8nd lw8 know or ao.roaron r4 that,
Uep’ertaent 8hoUld not. properly ino sot t&o Stato boilrr8 in the
8am aanner that bolleN0r all prfrata lndlrlducr38 are b-
8peoteb." &ad do to Opinion No. O-3000, ,a whloh it V88
hold %ith reioz%nOi to ..eo8t8 inoldent to $ha irr#prOtlOn of
boll8r8, it 19 OUTopinion that the 8aae aay b.ji?dd by the
yarlour OOU0608.-
Ia OpinionYo. O=ll5+, a sopr or mm& being i&xohed
heroto, it VI89hold, in regud TV th0 TeI98 Ptil8OaSJ'8tem,that
th0 itea 0r expenro lnourred la tha lmp ma t or luthorlzed
pw8on8 to.lnrpoot the bollere of tha 878 Y em my be paid out of
tho genarel au port end malntatinoo or aontlngant lx ~p mr item
o
0r the rpptipr fetloa. We 8oe ao realon jfhythis 8houLd riot
apply ln mgati.to the TtihU8 Ooll0g09.1~ qlbi8tloa.
xn r:Cgrrd to. your iotter of Fohruat7 3, 1944, &I&
whloh
you inquire farther in thl8 *tter a8 iollow8r
-Ir moo flad that we UO not have tlw aubborlty
to Q&Y ror th~lrpremiaa, I 8s roadaria& if wo oaa
otnoel the exlstin pal10 9nd reOoler'on"a 8hort-
tern PatO ba8i8. #hlr pofloywill huglo ~beon in
ror& ono year Pebyt 8th and war purohamd on a
three year bi3810.. *
Honor~ble~R. L. ThorPar,prge'd
.YO will &v8 te quoteyou the general~milerof law lpp1faable
to 8uoh polloio~ and, to al6 your detsrulnatfanof thlr problca,-
give qur opinion nsaorrtifly oirowarlkd br our ‘&ok of per-
tlneot faots.
ln Volume g4, Totar Jurlrprudonoe,on page 749, it
18 aaid thatz
:
*Property and llqbility inruranoe goliole8
urually oootaln provirionr rolatlng to their re-
iolrriotior aaaarUatlon by ,ofthdrparty, dqma-
dot&~upon arrtala oonilitionh"
on page 951 or raid VolurruB1 'Pbs,Jar.,.It ray88
-A8 a gearral rule, a poll07 of inrurapoo .
say Ia ornorllad by'mutaal agreooent.ofthe par-
tier, ln6agrnWntly or the teras.or tb aontraat,
and notrlthrtandinga rtandard poliay provl8ioa
for eaaae1latlonrttsr aotioa, although ,tohave
thi8 ltieot the rind8 ot the part188 mast have
mot on oanaiUatlo.oa.~
. .
ias 8& no tiason kiy, ,pllder eomi
the or
provlrionr
oi thr next above ret out rUlO6 01 &au, fou
uoald not be al-
lowed to canoe1 th8 poliaf or poliolep~andrcoavrsrany luah
part or the premium aa 18 unmrnad. .
~Boplig tilr full; adviser you a8 to all yoirr quer-
tlons oa this ~rub#aaf,’we are
Tours vorr truly
..
A88lrtant
Untitled Texas Attorney General Opinion
Combined Opinion