. .
TZXE A~~~ORNEY GENE-L
OFTEXAS
!4F.A. Reagan;.Jr.
Ca-tia1t.y
Irisurantie
Division
Board of Insurance Couunlssioners
Austin, Texas
Dear Sir: f$inion No. O-403;
: Would ~the lii~lusionof thFphr&se
ncaused by acc~dent'!'ln‘-statutol'g
endorsement forms coritravenethe
quoted portlon of the Motor Car-
rier Act? _.
"Your request for an opinion on.the above stated
question has been received by this office. .,
..,
,Se&tion5, Article 4682b, Revised Civil Statites
reads as follows:
"Ih addition tb the duty of approving
izlbssiflcationsand rates, the Cominissloner
shalX.prescrlbe pollcg forms for each kind of
lntirance'unlform in all respects except as
necessitated by the dlfferent plans on ijhich
the various kinds of insurer% operate, and no
insurer ijhallthereafter use any other @rm In
writing automobile Insurance In thSs State; '.
provided, however, that any lnsurer,mag use any
form.of endorsement appropriate to Its p~lanof
operation, provided such endorsement shall be
fIrsi5tiubmittedto and approved by the.Coql$-
sloner; and a* contract or agreement shot EC&-
t&n into the-~appllcatlonand policy shall be
void and of no effect and in vlolatl.onof,the
ptiovlsitisof this Act, and shall be sufficient
cause for..revocationof license of such,Fnsurer
to write automobile insurance within this State."
Section 13, Article glib, Revised Civil Statutes
reads as follows:
'Before any permit or certificate .of
public conveni&nce and necessity~~maybe is,ved
~to*,any-'motbr
carrier ahd before any motor'car-
rier may lawfully operate under such 'permit or
Mr. A. Reagan, Jr., April 11, 1939, page 2 O-403
certificate as the case may be, such motor car-
rier shall file with the CommLsslon bonds and/
or liisurancepolicies issued by some lhsurance
company including nutuals and rdciprocals Op
bonding compang~'authoFlz6dby law to transact
business in Texas in anamount tb be fixed by
the Cotiisslon-under such rules atidregulations'
as it may prescribe, which bonds and Insurance
policies Shall provide that the obIlgoi+there-
in will peg to the extent of the fbce amount of
such insurance policies and bonds all judgtients
which may be recovered against the'~motorcarrlsr
so fiIing said Insurance policies and bonds, based
on claims for loss or damages from personal ln-
jury or loss of, or injury to Property occurlng
&ring the term of SaW'bonds and policies and
atilsing.outof the actual operation of such'motor
carrier, and such bonds and policies shall also
provide fbr successive recovei?lesto the corn:
pli5teexhaustion of the face &mount thereof and
that-'suchjudgments will be paid by the obliger
in said.bonds and insurance policies lrrespetitive
of the solvency or insolvency of the motor car-
iT6r, provlded, however, such bonds and policies
shall not cover personal Injuries sustained by
the servants, agents or employees of such motor
carrier. Provided further that In the event the
Insured shall abandon his permit or certlflbate-.
and leave the State, a claimant, asserting a claim,
within the provisions of said bonds or policies,
may file suit against the sureties executing Such
bond or the company issuing such policies in a
court of competent jurisdiction wlthcrutthe neces-
sity of making the insured a party to said suit.
Provided, however, that the Commission shall not
require Insurance coveri.ngloss of or damages
to cargo in amount excessive for the class of
s&vice to be rendered by any motor carrier.
E&h such motor carrier shall, on or before the
date of the expiration of the term of any policy
or bond so filed by him, file a rijnewalthereof,
or netibonds and policies, and s&l1 each year
thereafter on or before the explratlon date of
the-existing boiidsand policies, file such re-
newal policies and bonds so as to provide con-
tlnuous and unbroken p?2otectionto the piibllc
tiavlnglegal claims against"such motbr carrier,
and in the event such renewal bonds and policies
are not so filed, the Commlsslon, after notice
to the motor carrier, and hearing, may, wlthin
Mr. A. Reagan,Jr., April 11, 1939, page 3 O-403
its discretion if it shall find and determine that
the ends of justice will be better subserved there-
by, cancel such permit or certificate for failure
to furnish and provide such bonds or insurance as
hereln required.
"Each motor carrier shall also protect his
employees by taking out workmen's compensation in-
surance, either as proviaed by the Workmen's Com-
pensation Lawsof the State of Texas, or in a re-
liable~lnsurance company'authorized to write work-
men's compensation insurance approved by the Com-
mission."
-.
-, Section 5, Article 4682b, supra, Imposes upon the
Board of Insurance Commissioners the duty of prescribing unl-
form policy and endorsement'.formsfor writing all classes of
automobile Insurance in Texas. The Board of Insurance Commls-
sioners In compliance therewith has prescribed standard policy
forms Including statutory"endorsement forms for attachment to
Dolicies covering trucks and busses operating under a certifl-,
cate of convenience and necessLty from the Railroad Commission
of 'Texas.
Sectlon 13, Article qllb, supra, specifically pro-
vides that such:
"Bonds and insurance policies shall pro-
vide that the obligor therein will pay to the
extent of the face amount of such Insurance
policies and bonds all judgments which may be
recovered against the motor carrlerso filing
said insurance policies and bonds, based on
claims for loss or damages from persona~linjury
or loss of, or Injury to property occurrfng dur-
Ing the term of said bonds and policies and
arislng out of the actual operation of such
motor carrier,"
was by the above quoted language of Section 13, Article
qLlb, supra, the liability of the obliger is not restricted or
limited'to loss or damages from personal injuries or loss of, or
injury to property occurring during the term of such bonds and
policies, caused by accident and arising out of the ownership,-
marntehance or use of such motor carriers, but on the contrary,
the liability of the obllgor Is intended to cover all losses
ordamages~from personal injury or loss of, or lnjurgto property
occurring during the term of such bonds-landpolicies arising out
of the actual operation of such motor carrier.
Mr. A. Reagan, Jr,, April 11, 1939, page 4 O-403
- ... We think that the inciusion of the phrase "caused by
accideht" In the statutory endorsement forms restrict and limit
the liability of the-obllgor to the extent that It Is contrary
%J the specific language of Section 13, Artble qllb, supra.
You are respectfully advised that It Is theopinion
bf'thls Department that the inclusion of the phrase "caused by
accident" in statutory endorsement forms contravene Section
13, Article qllb, Revised Civil Statutes.
Trusting that the foregoing answers your inquiry, we
remain
Very truly yours
ATTORNEY GENERAL OF TEXAS
By s/Ax-dellWI.lliams
Ardell~'Wllliams
Assistant
AW:AW:wc
APPROVED:
s/Gerald C. Mann
ATTORNEY GENWAL OF TEXAS