j i 

OFFICE OF THE AlTORNEY GENERAL OF TEXAS 

AUSTIN 

Eon0rrbl.a Q. ?. LoolOurt , Chairman 

Board of Insureno 0 c'osloaorl 

Austin, Torao 

ideed your letter or 

a as tci vhothor ar not 

th.dolago:aalfA8aralwo 

to ba onwof lamuwwo, 

ds or la8uraaco aad furthof vhat statutoq protisions. 

photostatlo copies or tha coatzset form 

esse.ntial foaturos of tbr plan dlroloors 

that ageatr or the Fuwd Ohapel, derigaated am solioit~ 

agoat, take &ppliaalon fOF'qn rrbul~*-~onioa-oontnot, 

vhonlatha rpplioalltmrr8t 

lfio 

vo thdr m, a#* aad aIldr.88, 

atatlag the aatura of q 1 18 sufiwed snd vhotlur hompltallsod therefor vlthln ths prWlOUa six mtb, l.S me !Tha 

so,r*iao 1s to bo mathrod for a period of arm pW Sfter aCWPtII~CO by the corporation beginning from date of delivew of the 
samlao-ccuimct to thw 8p&lcmt. The consldbmt!oa for th, 

eervtco lr aa annunl crsh bus of Tbme Vollarr ()>.OO) pm14 

;rrior to delivery or aaid em-vice-aoatnct with the *fleetire 

ante be- the data of ita dolllmm,by the Chap01 to tM a~- 

pllc8at vhl.10 in good health md fm from tit0 l ffoats of 

lnjurim. 

In mgnra to the smvlce agreed t3 ba redored, the 

contrAot provillor I 

‘Sdd m-0 &OFV~OO ir to bs mnd*nd 

oalf ln the olty limIta oi Ft. Vorth, l'e~~. 

nn4 kxo1umively by Sh~nn~t~ Funerd Ch~p018 

snd that mid Ambulaaca Sorvlco la to ba 

r ea bro od nly up o n l uthor~zntlen o f 0 Aia u~a o d 

phyafalnn or aurgeoa, uorS Fwrgency Ambulanao Service In the arent of acaiduxt. 

Ubotner n eantrmct lo OBO of lnrw~or la to bo dotaufao4 br its purpoaa, rffect, contenta urd l.mpart. uwi set 

nocossarily by tha tonrlnolo~y usad. Aad If ny ooa8tltut* 

Inruraaoo If !t bo for oontrootam’a bonoftt 4nd a snotmet 011 

vh’iuh mid oontmateo, in aaee of broach thwoof, rf l sert 

a c*ua* 4r Action. tatloml Auto tkrviae COPD. ~8. Stato, 55 

3. V. (36) 709, dJ A. L. R. :15. 

ln 44tonsiaing ths qwstioa of vhsther th4 obntr44t 

be mzuly aw for perrorul l omlcr or af &amuruaco, the rutlamItier lpwnr to l ryport bT an&logy tfu vim t&t them vould 

bs no dlrtlactloa botvaur P corporotlan orrely yruow to f'wateh ft8 ovn ubulaaoo. ao fa cbr oontrat Farolrod urd g&roefag to Lahmnl.fy or rrlmburs4 tlm hd4.r for losm W-6 In 

h nvlu b een l o r v.b4 y ma nsta ulsa bslozqlng o ~ to a a o theo or )- 

v-w* 

Ttw414mmt8 ud r4quirlt44 gamnlly of a oostrwt 

of Ia8wuso4 *a set forth %n 3; C rpus Sur’ia, ?ago 1395. an 

a& Iollovst 

"(1) A l bjrrrt mtter. (;) A rlcir or 

04ntlng4nC lnrund egnfmt u\d the duration 

thoruof. t -5) A praafso to pay or to(yyI 

in a firul or r844rtalrubl* aouat. 

ooamfbemtl4n for th0 pro8180, knovp a# t.hS 

mfum, and th p4rtad of paysant thonof. 

PSI An l g no no a , t or roo ting o f the mind* o f 

the jnrtly, um ull the rc,rcgolJig cnavntlr~ 

rlorntm. 
Ve c$ot. fraa 7g Am. SW., Pm-c. 3. Page 471 

'nw o uth o r it~o * l PO wlaetantlal~~ agreed 

that lMur8aoo guually may bo dofiord u on 

l gwownt by vhlah m poraoa for a aoaelder8- 

tloa pranioe8 to pey moaoy or lta oqui~alent, 

or to porfom 8am 8et or raluo, to 0aoth.r 00 

the brtruotloa, both, loo*, or 14ul7 az am080 or l mthing by 89wrid Perllu." 

u&er chapter 10, tit10 78, n1at:ng to gewlll armrlty uomp8alea, Artlolo 4989 l f W St&tukr, lt ia prowl&e6 

thet y three or mar0 por*ono, a njOritJ of alal am nsl6omtr 

a t th.Lb ute, ny l saoai8te la l ocordmce with ltr prevloianr 

cad iDmen lmoorparotea cw ror My oae armore oftb followin# purporort 

'1. to laouro up wraoa ogalMf baally 

lnjlq, alaablemuat or death rut¶ltYJag trw 

uraibmtrad~laotai8rbbratnrultiag 

from dlaeaae. 

'0 . 0." 

xt uloar4 rppeon that the burlnmr 9ro9eaed 80 k 

eaabotea 8y the 8hulma hrrwnl awpel would omte em\motual 

r lg k to a 6er r h iel ppllaant h tb a orwlb*rr of tbmirfuli~r*- 

aolw bueflto la the iem of value6 urri4e8 up08 tha mppmlag or urtaa eamngmnulu. mo nmlltloo or 8ervlur la thir 

l.Mta8aoybeorm.oh wweautlon for lo 08 fr 88 a r ta t.l 6 mt l 

r o a dfly eo eo r ta fnmb le, l a wo ul4 b e t2u paymeat o f mummy. 

Suob l a via es~ a 8 vo ulA tn r uulemd tam&r 8h8 oabtnot 

in Qwr tlaa la a 64 e nea eua rby mr o n o f dio a h la mnto ultb g h a b e& l a eldo nt er dame. It ia t&la wnv w 

thgenaf, that auab dl*ability vi11 not a0 ooekw withim t&-emtmot porlod. V&l&a r0lutLtutu tb ri8k 888umo4 w 8bo -@water 

urb vhlah in our 09lnioa, beiag prlrrily a :-me of awl&at md 

BMitb lnsumnao ruthorlmd to k writtax ia Uu forogoly 8tatute 

w9lloabl*to caamlty oagurlea,rker tb IIswmaO oftb'pra908od aaotnot tba aoiag ot 8a inmwum l huo lmor a nd ultra vl.r .0 

+m the por t or a a 6 r uwnl aorparotloa. 

Ip I8Oh Cl6 

c o n. vu. Motorist*’ ?!P 

VO ilad SumaFt inth4 uoo of Allln, flu. 

lluue or Awrla. Ino., 734 XT. 71s. ng 
Honornble 0. P. Lockhert, Psge 4 

3. v. ('d) 19, 11 A. L. R. 6836. end euthorltlee therein cited. 

The 9otorleta' Alllenco ol AtemIca WI) an Ohlo corporation 

exltting by vlrtue of the ISUS of the State of Ohio vlthpover 

generally to fumlah eccldeat and other aer~i~e8 to nutonoblle 

OVIWN. The aaterlal faeture of its contrnot as lnrolved in 

the o6se van th6t the company agreed in oaeo of suit, to emplq 

(J. looal ettomoy. In vhoee eelectlon the holder of the contmct 

should hate l volae, vho in turn. vlth the coe~eny'a attorney. 

VCB,U~~ defond the caeo. urd to relieve the holder froa the oxpenae therwf, en expense vhloh the court said rust follov the 

hnp;.enlng Of the V6q OWXtlngenCy pMVlded egelnet. In holding the contract in controv6reJ one of lneurenao. elmllar ln 

nature to that lnvolred in Phyalclan'a Defense Co. VI. Cooper, 

Inc. cam.. (C. C.) 188 Pod. 832; Id. (C. C. A.) 199 Pod. 5'6, 

560, 47 L. R. A. (I. 3.) 390. the court. rnther than follov 

tho reasoning in thnt case. beeed ltr decielon on a etetutnry 

provlelon declaring it levful for a company to vrlte lneurence 

for the purpose. song Others, of insuring ovners of autonobllea against "much loeeos Se l rite out of the ovnershlp, operation, or meintsnence of the wee." 

It l peolflcelly eppoara thet the oontreet here InVolvea 

la la8ued 0Vor tho new of and as the set of a primto corporation organlted end oxlmtlng under the goner81 lav for the purpose of wageglng in and oarrylng on an undertekFng buelneee. 

The oontmot axproeely states that the contracting perty la the 

3hannon Funeral Cha9el by and throu& Its Vice-Prmeldent end 

Osneral Wanagor." In Vlov of this fsot. the Board of Insurance 

Corrmlealoaem has no nuthor:ty to take eny prohlbltory ectlon 

9thOr than to r6port promptly and in detail to the Attomey tineml, ee'povlded in Article 4i58?, Vernon’s Annoteted Civil Stetutae, any Violation of lav lulatlve to the buelneee of lneumnce. 

As to the apeclflc latter before us It vould reaSonably be ln 

line vlth the dutler lnpoeed upon the B>erd by eeld etetute to 

80 advlee the oorporet:~ in queatlon of Its oarr*ng on an lnaumnco buelneee ln vlolatlon of It8 charter end Should Said 

COr~retlcm o.mtlnue to issue l oah contrecta. report ln detail 

4uoh Violetions to the Attomoy General. 

Article 5'0~. Vernon’s Penal Code of Texea. IA part, 

imovlcler: 

"Any peraon vho shell act ne e life, health 

or l ocident lneurenoa agent without hevlq Itrst 

obtained e license es herein provided, or vho 

shell eollclt life. heelth or nccldent l~bur~ce 

9r ect a6 n l:fe, heolth or ccc!dent. agent vithmt :xv:ng been opyointod and ClcsiEnrted by aomc 
,.- 

Honor8ble 0: P. Lsakhut, 

ln8umna e c o mp a ny, l a o ldmnt 

1neutnnee oompany. llfrn ane aooldent, bmalth ad 

cccident, or life, horlth and aooldent lnmwanoe 

company, or a88ooIatIolr, or org*nl~atIon, looal 

8tUtUil a id U8OOia thQ, Olí 8t8tOVide mtUd l 8- 

8OCiatlOtt t0 do 80 88 h8mb prwlbd, or MT 

9umon vho 8hrll 8olIolt life, hulth or aoeldUtt fUtua nc 0 OXí l t (I8 UI a@ttt for Ulr POP8,,,& Or iPr=0. 8m Or th88oOiati~ not 

authorlrv6 to do bwiAe88 in TOXa8t l l l , a8 

h0-b & UVtidOd 8ha11 b guilty Olp 8 ti8daUlCr 

WI, UpOn OOfI~lOtlC% 8hd.l be find 

"y 

mum‘ 

not in l XC.88 of Fir. Bumlnd Dollarr ( 500) au 

8hall b h8Zl-d frOr -OdVbtg a 11OOSk8e a8 M 

lnutronce 8gont for a perI0d of at lea8t tvo 

(7) y8U8: 

It 18 fttFth.r OPC ViOV that 8Uob ~r8OlU 8OlIOiting 

thll tm of oontX=ot Vlthout b.b~&! 110M0ad br tb ltpl~~~nom 

Dsputmant or vlthout having bout duly aJtpolntod au4 do8lgttat.d 

l @ttt by 8OT 001 Ol'loII Or thU 8JBOOFfid OWp M i.8, l 8 di8- 

olowd ln your letter, i8 aubj*ot to the pmnlty provldmd for 

in Article 5701 of Vornon*8 Ional &la of tua8. 

t In M8v.P to m requut. thOMfOF0, it 18 t& OPtiitUt Of thi8 60-t that th. 8Olidting ti i88U4 Of t& 

rrbolULCW8OWiC+O~tnOt de8Orikd OOlUtitUt.8 tb dOla( Of 

aa W-0. bU8iSU88 a 8UOh aOt8, b.w titl'0 V1lW8, 8UbbjeOt8 

8aid oorpontion to an lnqulry into it8 ohutu rlght8 W the 

AttOl’Jle~ hmti Of TUa8 U&d tb tea Of rush a8tim l 8 VOUhi 

ti lWOO88al7 8d PFOpr lULdCF hi8 OOIl8tltUtiOXld 8UthOrltJ.