Case Information
*1 OFFICE OF THE AVORNEY GENERAL OF TEXAS
AUSTIN
!?onorable Girard Xlaa.1, Ageat8' tioeorer -upenloor
?i re Ianunno8 Departma t
Board oi Inruranor Commlsrioaerr Texar
Au8tla.
Dear Slrr
I) the above rtated rtasat, 5 rOliOW8: y coqmy ule , both 8toak ia !hll8@8, rO88 l 880888b for ompaalor rgen- cordlEg Xe AUd8 the mid aCmipIaio8. 8arOrO8 th8 n rfrort to jurtly 27 LnU, Art. 4758 (A8 UOnd8d, p* 713, ah. 307, 900. 1) e a company may aaoept buslao lo Tesar rr0i2 an agent, it mu8t rile r0m1 aotloe or appointmat Tho l p- in favor of th8 agoat.
Fainted g8nt may, lo turn, l p lat rollolton who autonatloallp, upon recolr ry their 1100n80, f” to repnsrnt
hare authority and produoo burlnrrr ror @tory corpeny reprosontod br 8ponrorlag In other wor68, a sollaltor reoordlng agenay.
to M properly and authorl%ed produo@ liC8Il8.d *2 Hoaorablo Girard Xlnaey, Tad0 E
bWfa444 iOr 411 Of the r4OOrdiag 4gWICy’S OOUI- panle18 aredr only to have a for6al notlae or appolatment fll84 la hlr behalf by one of tha oompanlos reproarntrd in the agenay. Yhir plaoos la th8 QO8itiOa or aaoeptlag nur44roU8 ooapaler bU8ia848 ladlreotly rrom 8ollaltor8 whom they hare not torally apwlatrd but who80 authority for ther he8 brsa granted the re- to 8OliOit aordlng agent, who la a duly apyalatsd agent tor tlla ocxiqmay.
Vhr Kacear agenay natup, on other hand, 18 8 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 llosnlred 48 an agent in Kunras.
“our lnroroiatlo~ cOnasralng requirenaatr Uad4r th8 :ilAIl848 .C,tatUt44 18 baaed Oil 8tPtOmtltl 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:o oontaad that iaasmuoh a8 a Texas oom- paay 688lrlne to do buein88s in Kansas la r8- a,;;ly ror a Ilce~ee ror every lndlrld- qulred us1 imoE; whom it 6XgeOt8 to reaelve business and mat pay a $2 tee tharoror aod who is prohibited rroik acoaptlnE businors rr0; any individual when &h;teaot licensed and for whom it haa not paid
thiv departsent 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&IO hold 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 l xc Mn6e 0r *3 Honorable Clrard ?dnaoy, ;ago S thlr State or agent la roqulrad’to thereof
aako any deposit of 8oourltlos thereunder ror protootioa Or ~~lOyhOldor8 or othorwl8., or to make payzioat r0r tax.8, flao8, penalt1os, oertfrloater of authority, raluatloa or pollo1o8, 11oon80 fO48, or othorwl80, or any rpeolal bur- den 18 irmpored, UrofitOr than 1s r’rqUiSOd b7 tha lan8 0r thlr state ror siaUar rorrlgn oorpor- atloae or their l goat8, thr lnsuranoo ooffipBnlo8, rraternal beaerlalrrry eoalstlrr and reclprooal xohango8 0r such States or gororuamt6 ahall be and they--are heElby roqulrrd as a aondltloa proardent 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 abzioro ror,ulrod shall hate its oertlfloate ot authority revoked by the Conunlaaloner of 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.ie AOt, be oonslderod OOQoB?L- tloas of that State whorein their general daposlt ror the benetlt or their polloyhholdors 1s 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, 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 oonipaay whloh the agent roimseats: *4 Eonorablr Clrard .Unney, P3c-r 4
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.O of 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^r her 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::ntatlve of the Insurance ompanp by whom such rerson is authorized to negotiate or rrect 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 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 coqmny. The company pays a 32.OC fee ror this y&t
.
. l
Bonorublr Glrard Kinney, Fare 5
It appeara thet thr Texge *eblIcItor’ who Ie appointed 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 aoh “a.grnt ” muast heve a llosnes under thr law8 of said Statr. a:vIeed that It Ie the opln- You are rcmprctfully
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~duoe business for said OOzipenIe8.
Trustlne. that roreeolng ray 0mwem your Inquiry, we renain
Yours very truly ATTCRNgT GBGE?&. OF TEXAS ?Qdell Vllllase ;aaIBtaplt