Case Information
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OFFICEOFTHEATTORNEYGENERALOFTEXAS - AUSTIN 1 ; I_ OROVER SELLERS ! ATrOINcv GLWcn*L
I Honcrablo Ri-ynn Bell, hector _I &tar'TransportatiOu Dltlslon c~misfiion of Texas amroad 'r;:~in, Tcxos Pear Mr. Bell: Opinion So. C-0770
A. 49th Legislature, whether or n of said Bi1.l , which relates~ to fir-
nisbing of scia insuranoe pollciefi, reads as follows: ‘0 0 0. The Commissi0n may accept fn lieu
of t!le filing 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 ., *2 . honorable Bryan Boll - page 2 .I: the rcqulrements of this seotion as if the :.
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 the fact, in the " reveal
confercncc which I had with you and representatives of ahat -: I undorstood to be some of the in5uraaco cOm?nnies, you want- the Railroad Commi56ion Could require tho c:! to hnon whether certificate to contain ‘In Form 8%, the provision set forth would not take effeot 'until thirty that ‘~t.he csnoellatian day5 after receipt of this notice by tho Commission', and vhethor, if tho notloe of aanoellation conta~ined 6aid clauso, the provision in the ia6uranco it would necessitate ohanglng policlee to the effeot that the company could not cancel.*-the notlco thereof policy without mailing a written 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. that t.his wouP,d not in any It ii further outi opinion
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 policy not less than thirty days.hefore the can- If the Railroad Commi~~lo~ cellation shall become effective. has a certificate of insurance rathor than the. policy, under Act in ~quostion it can roquiro the company to give the Con- mis5ion aotual notico days prior to tho not less thirty In other words, undor tho law, the policy must cancel3atlon. 6 provision that samo Cannot be cancolled un~tll'the contain beneficiary named has boon holder thereof, or therofn, maifea a notioo not less than thirty days prior to its candel- 1ztion. This policy, however, Is not deposited with rood Commission; If in lieu thereof It aaoepts a oertificate, under the provision5 of said dot It aan require that f-t hnve *3 Ilsnoligble Bryai3 Bell - p&e 3 ~. . . .> t. : spoolfled In tho policy be- tho thirty days' notice more knwcould bo cnncellod; insofar as it affootsthe Rail- furc 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 regular standard form used, If it Is filed with rood Conimissi~,. If, liowever,. origIna policy Is not fllod, then the Commission would have right undor statuto to require the insurance company to give tho Com- full thirty days' actual notico before the polloy mission could bo canoelled. Very truly yours
BY
Gee. V. Barcus Assistant .~