Case Information

*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN

HmorrbY e George H. Bat1 or, Chal.rmnn Board of' In aurence ConM asionern

~untln, Texas Opfnlon Wo. O-7294

mar Mr. Butler:

ne: nether under the aurrent apyro- priation bill official remmeratlon and expense@ lneident of out-or-##tata lnsuur may WI paid m from the Inm under Artial e Your letter requesting

upon the ahora subjeot-matter $9 nt 8n 0u

%xamlnrtlon at the end of atatewn ts are eaoh month and urinlt the earl7 part of the io ves some inconven- ienae to the fir& aoturlf

fore pyinft t ’ a Artlal e 46QOa

th I.eg., Ch. 378, r under the aurrent appropria- eratlon expenses upen ale 46QOa lnaurred In exam- aarue from the Insurance ~~amlnatlon ed b7 the eramIner’ affldavlt and ap- lrman of this Board, lrrespeatire of nsumn08 ampan under exmlnation has it that time paid aaarued costs to the ~Xnmlnatlon Fund. *The Insurance Examination hmd in the State Treamry aonRtant.17 containa unused balenoes Of remittaneee from out-of-&ate ingurers for the cost Of examination by thl~s nepartment, conslstinp: of' 'the otber expensen of the De- partmen t of+ Innuranae proper17 allocable to the examina- tion,’ and represents the proportionate part Of the aost of the general oterhesd expense of this Department allo- cated the various out-of-state companies examined- HO COIY”*Ic*TIO* >s TO mh CONSTRULD *s A Dl,ARTYINTAL OPINIOH “*LL,s A\pPIO”ml a” THE ATTOINE” EEHERAL oil FII1.T Is*IsTANT I *2 i+s, time to tj?su3 it., beOomes Deoeseary far the Comminuloner or hjr examiners to go &to another which are ntato for aonfermces nnd lnrestigationa

not aoncplete formnl exav:inatisn~ of any one oompany hut relate to examination of matter-e of a gmaral nature aiieatlnA neveral or al? cmmanies In the Xn such 0as~s it ir imprsatiaabls If state alike- not IRpoasible to fair17 apportion sml asseas the remunerutiou and axpsn,at r*lnnt the amwnies In that state who are or may be affected.

‘Please &vi oe me wbeth5r th4 Cminslmer' II ex- penses and the oxaainer'e rennmoratlm, and expenees In aneh eases may be paid Pram the Iastmmae ExamIn- ation Fund on the retaliatory basis provided In Artf- efe 4BUQa uhan reriiied by the examiner’s affIdarit und approted ‘by the ChaIrman of the Board, irrespeo- tire of whether the aompanies Who ara er may he af- feated are amassed few rruGh remmeratitm and cllprnse-'

fau s0aaupaa~ this3 r6quest *it& a rerf fnll 8i~u~anlon , departments1 onln- of the various statntan, appropriations ions relevant thereto, for wMah we thank mm+

Article &QOa (Rsv. OiV. Stat., Vemou's aodifieat3on) is aa ro1tswsi

*The expeas08 Of all 9Xaminationm Of domestie insuranoe aextp*nier made m behalf nf the 6tat.e ni TUXSS b7 the chalram of tbe Board of Insursnae Comdsaioners or urrder his aathoritjr shelf ha p8id examined In au& 88Mmnt as the hy the corporations Chairman of the Beard of Insurance Coarmlnnlmers oertlfy to be just and raanonable~ Awmmmmtt for the expannse of such dontQIatic exaWll¶atfen, rhiah shall he sufflaient. ta aieet 011 the expennee and disEbursementu neeassa~m to aampl7 with the provislo~a of the lows of fexsr relating DAY the examination of insuranae aompaniss and to the prerfsicms of Otis Aat, shall be aonrplg with nmde hy the Ch&i?man nf Board of Insuran0e &m- al.naienero upen the onrporatlW* or ansoef~at%.ione to be exastlned ta%inp: &to aonoideratim annue3 prem- lum Petreiptu, and/or admitted aasete and/W *na%ir- anee in Puree; prorSded nrch a~s45~4nt5 f&411 be made and anIleated OZIIJ at the tine such examinn- tlnns pro made.

%morable George BI Butler, Chairman - p@ge ~3 nAlX WRS aolleoted hy the Chairmen of the Board

of In wranae C0wd sdoners , or under his authorItyron atmount of the 8oat ai esam~natlonn ssesseU ss here- inabove prorldsd for shall he mid Into the state Treasury to the aredit of the Insurance Examlnatlm, hm%; nnd the salaries and expennee of the aatuarr of the Roartl of Inauranoe Comlasloners and of the exam- iners and aaslstantsr and al? other expanses of such examiaations, ah811 be pa14 upon the oertliloats of the Chairman of the Roar% of Insurance Commlasioners br warrant of the ~emptmllor %ram upon suah fund in tbe Gtate Treasury.

aIt at any time lt shall eppear that a%dltlmal pro-rata aseasmmts are neoeasary ts uover all ai the expenses dlalmrsemsnts reqnireQ by law and neoes- oary to oosply wltb this Aot, the same abrll tm rnsde, am% any wlrplus arising from my and all mah aswas- merits, over sa% above aush expensea and dlabursemmts, be applied In reduotlau of subaeqttsnt aoaeaa- menta In the proportion aosessed so that there aball be so asseawd an6 eolleoted the funds newaary meet auoh erpenwa md dlabursaments and no more. to

.Ia wae oi an examimatlm af a campany not or- gaaiwd under the low8 of Tesar, rbetber suoh examin- otlou 3.8 ma& by tbo Texas autboritl.ea *lane, cm faint-

'17 with the iasuranoe supewiwry authorities of motb- er state or ntates, the expenses of sueb i3xaainetloa %ue te Texan' part3olpation therein, shall he barne by the aomvar~f under examination. Payment of suah ooat nhsll be nw¶e by the sompen~ upon prea%ntetiaa of item- laed wrlttee statement by the Clmlrm~~n, and shall aon- slut of tbe examiners’ ramnnerat~im an% iixpeaaesl an% the other expenws of the Department oT.lnauranee prep- erly al.Ioaabl e to examinatlen. Payment shall be mnde direutlp to the Chairman , and all mmey oolleate% hg rmesmmt cn forefm camanies for the oost of ex- fmiln8tim shall be deposited in the Mete Treamry by the Chairman to the oredlt of the Inwrauoe Exaalnatlon P’UTIQ out of whiah shall be paid, by warrant of the on +ouaber or the htata Comptwf 1 er of Pablfc Aorta Chairman of the Board a!' Inwranee hnmias~oners~ tbs exrmfners' remrmeratlon and expenaecr in tbe amomt8 detetmlned by the method hereinafter provided, wbsn rerlf'led by their afiidarlt amd npproted by the Chair- man 8 and said money is hereby appropriate8 for that *4 I ” uonorable George IS. Butler, Chairwsn - page 4

parpew, tbe balanoe, i.f any, to remain Ln the Ineurr- an# ?Sxasinatlon Fun% In the State Treasury auBjeat tn be expmd,ed for the purpotmn as sre sthrr kds FZxmltneru’ remunoratlon and erp6nsea plso~. there&n. shall he the same as that which would ho paid by the hams ntate of+ II oompoay under exam~natian tn persons wnductinp the. examinatlOn oi’ a Texas eompan~r dad t- told to do business In that Stnto. Sf there, be no rebognlGed aharge for uuah se-ice, the &ainaan tlx the remuneration and expense 8IloWanoe of the oxamlners at woh reasnnshls f lgtve sa ho may %etermlae .I

We eurreat approprlatlon involved la aa follows~ .siWw tbe purpose of payiag tbo rorogolnff examh- atian apenae and aueh add3ti.onal er suppl,emobnt81 ex- penw 8s is neoeaary incl%hlt examia*tlon or ln- wramw wmpanlen doalalled outside of Texas, and for defraying all other i!ixpauasa neOeasary for the adrin- lstrafion of tbe provisions a? Chapter 1BS of the den- en1 Iaws of the Regular Sesalrm of the Forty-a4aond I,eglalature end Chapter 264 of the 0envx-d Lawe of Regular 156~~141 of the Forty-BDllrtb f.eglslature, and any an% a11 amedmtuttu thereto, and se rmen%e% by Rsnate 1111'1 a67, Aata a? the Replar Rea8iCm of the ?erty-Mxth lJegislaturer 18311, there is he-by l p p r o p rlated all fees swswemts aolleoted a- dar atbotitp of said Rxamlnlng Law, such portion of tb6 fess oolleoted under Artiele .lRmM Aata lW39, T~:egislrturer 6. Bb 104, as may be trams- Forty-Bixtb by the Life laauranos C~lasinner, together tsrrd wjtb oaf balaneas 8t the end af a preeeding fiwal year for each of the l’lwal~ years endlnc August 31, 19/F,, and Augast 31, 1947.'

In the course ol Your ecllansnts p err: l * + e. The Cnaptrollor has eallod our atten-

tlm to opinion n-4280 above referred, ta and has a%- vised Q* that collection from the out-of-stst* oom- psnlea aa@ preeeda paymant ta the exsminor.

gAptla10 46R&1, aa amended by PBnSte Bill -7 @rOri%en in park 'e . l ot the 4Rth Xegis?aturo, and all money col.leete% by assessment on ia~8la, companle~ for the cnst ai” etamlnation shall be de- *5 ~oitodlnthe Btotofreo~b]l the Obolnuo to tbo ered~ t af tbo Inslroneo Bxominotion tund out o? utiieb ho11 bo pmid, bT rorroat of tbo Stat.

Comptroller of Publio Aoommta an rouohsr ot tbo Cboimon or the noord or 1nawoaoe Cam@lSOioner8, cm8morotlon tbo a8wtinoro’ 8nd upenneo in the amounts dotermlaod by t&o nothod her~inrikr pre- ride& whoa rerif1.d by tholr l itld8rit mad OQ- *enor lo borow prored by tlm Cbolmon 1 mad uid it op*roprioted ror tbot purpO00, the bolama, may, to remoln ia tllo Iaaroa0. xxomilJotlen mad Tswoaury ~nb jeot to be upaadod for la tbe 2kte 80 ore other fundo pl,rrsod tbo purpouo tltoreia.* to be paid OUt Of tbo m &o dir The •8ab~ in tiasplished from out of the 0torli m0n~ paid bk tdm eplllab7 the iaurmloo eompony* A11 moaiao ia apo8itloolly ror ore o,pproprloted that pur- ~09% io tbo cboim'o de7 to oolloct tlw unto rrea the smounaae eompmEy. men he o&g* ~OUOhhir Oad @ppOT@o tb@ -a~#OP’rn aA0 OmdOTitb be d&ii*0 thot eol1eoti.m or tbo usrats obom en the tthlorit boo eitbor baa mod0 tron the in- uromuo mamony, or that the Caaiodoaer la tbo dloabrrgo 0r h$o dut10a till eafloot it.

'It ia utaltted that me long no tbem.ora rmi- floiamt menho in the lCxomtlnotlon ?@nd to pot tdw uomlnor'o ~asshar. it io the duty et the Cb&raon oleno to oee tbot the aoot fm oello6ted !‘reu the uotniaed akmjvony. ond tbot it not duty tiP the @omptroller, md sorreopandt.n@~ net bio pro- rogtiro, te ge bobbind the Cboim 8 OppFoTol at tb0 uodnbr* i +ouelmr ma rtCidrrit.*

We or0 in ooeord with your 86noluodtmo t&w wrpreoa- ed, frem rblob it follewo that faur queotiona sboald be anber- Rand ed in th e l mr o r ofir o. It i II tbe Immmmee %matlaatSm that 1 m opproprimtea for pomont of the ex~oasao lnvo?rod, and port8 or tbot itmdr to be derived from the not the ooxiponont porM,oalor ummluotioa alain lo preoented. or uomlnotiaaor MI oeaaunt of whleb a