Case Information
*1 . .
TZXE A~~~ORNEY GENE-L OFTEXAS
!4F. A. Reagan;.Jr.
Ca-tia1t.y Irisurantie Division
Board of Insurance Couunlssioners
Austin, Texas
Dear Sir: f$inion No. O-403;
: Would ~the lii~lusion of thFphr&se ncaused by acc~dent'!'ln‘-statutol'g endorsement forms coritravene the quoted portlon of the Motor Car- rier Act? _.
"Your request for an opinion on.the above stated question has been received by this office. .,
.., ,Se&tion 5, Article 4682b, Revised Civil Statites reads as follows:
"Ih addition tb the duty of approving izlbssiflcations and rates, the Cominissloner shalX.prescrlbe pollcg forms for each kind of lntirance'unlform in all respects except as necessitated by the dlfferent plans on ijhich the various kinds of insurer% operate, and no insurer ijhall thereafter use any other @rm In writing automobile Insurance In thSs State; '. provided, however, that any lnsurer,mag use any form.of endorsement appropriate to Its p~lan of operation, provided such endorsement shall be fIrsi5 tiubmitted to and approved by the.Coql$- sloner; and a* contract or agreement shot EC&- t&n into the-~appllcatlon and policy shall be void and of no effect and in vlolatl.on of,the ptiovlsitis of this Act, and shall be sufficient cause for..revocation of 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~~may be is,ved ~to*,any-'motbr carrier ahd before any motor' car- rier may lawfully operate under such 'permit or *2 Mr. A. Reagan, Jr., April 11, 1939, page 2
certificate as the case may be, such motor car- rier shall file with the CommLsslon bonds and/
or liisurance policies issued by some lhsurance company including nutuals and rdciprocals Op
bonding compang~'authoFlz6d by law to transact
business in Texas in anamount tb be fixed by
the Cotiisslon-under such rules atid regulations' 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'~motor carrlsr 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.out of the actual operation of such'motor carrier, and such bonds and policies shall also provide fbr successive recovei?les to the corn:
pli5te exhaustion of the face &mount thereof and that-'such judgments 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 wlthcrut the neces- sity of making the insured a party to said suit.
Provided, however, that the Commission shall not require Insurance coveri.ng loss 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 rijnewal thereof, or neti bonds and policies, and s&l1 each year thereafter on or before the explratlon date of
the-existing boiids and policies, file such re-
newal policies and bonds so as to provide con-
tlnuous and unbroken p?2otection to the piibllc
tiavlng legal 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
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'.forms for 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~l injury 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-land policies arising out of the actual operation of such motor carrier.
Mr. A. Reagan, Jr,, April 11, 1939, page 4 We think that the inciusion of the phrase "caused by restrict and limit - . . .
accideht" In the statutory endorsement forms 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-dell WI.lliams Ardell~'Wllliams Assistant AW:AW:wc
APPROVED:
s/Gerald C. Mann
ATTORNEY GENWAL OF TEXAS