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.ntialfoaturos 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 **hompl** tallsod **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 thesamlao-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.10in good health md fm from tit 0 lffoats 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 eabro d

o nly up o n l uthor~zntlen o f0Aiau~ao d phyafalnn or aurgeoa, uorS Fwrgency Ambulanao Service In the arent of acaiduxt.
Ubotner n eantrmct lo OBO of lnrw~or la to **bo do**  **taufao4 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**  rutlamI tier l pwnr 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&roe** fag to Lahmnl.fy or rrlmburs4 tlm hd4.r for losm W-6 In hnvl ubeen

l o r v.4 bym a n st aul sao~

bslozqlng t o a ao t he r o o )- 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 at

,or roo tin g

o fthe m in d*

o f the jnrtly, um ull the rc,rcgolJig **cnavntlr~** rlorntm.**Ve c$ot.**  **fraa 7g**  **Am. SW.,**  **Pm-c. 3.**  Page 471

'nw ou t ho rit~o* lPO 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 am

### 080 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 att h. b

Lute,

ny lsaoai8te la locordmce with 

### ltr prevloianr 

### cad iDmen lmoorparoteacw ror My oae armore oftb followin# purporort



### '1. to laouro up wraoa ogalMf baally lnjlq, alaablemuator death rut¶ltYJag trw uraibmtrad~laotai8rbbratnrultiag from dlaeaae.
'0

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xt uloar4 **rppeon** 

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### eaabotea **8y the**  **8hulma hrrwnl**  **awpel would**  **omte** 

### em\motual 

### rl g kt oa 6e r rhieht ba l ppllaant 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 f or l o 08 f r88 a r t at.6

l m t l r oadf l y e oe o rt afnmb l e, l a w ou l 4 b e t2u 

### paymeat of mummy.
Suob l avi aes~

a8 v o ulA tn r uul emd



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### oabtnot in Q w r tlaa laa6 4 e neaeuar y

b m r o n o fdi o ahl am nt o ultbg ha be&laeldo nt **er dame.**  It **ia t&la**  **wnv w**  

### thgenaf, that 

### auab dl*abilityvi11 not a0 ooekw withim t&-em**tmot 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 hu ol mor an d ultra vl.r.0 +m t he port or a a6 ru wnl aorparotloa.

IpI8 O hCl 6 c o n.vu. Motorist*’ ?! P VO ilad SumaFt inth4 uoo of Allln, flu. lluue or Awrla. Ino., 734 XT. 71s. ngHonornble 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 lrite 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 **Stet** utae, 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** loah 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,

ln8um n a e c o m pa n y,

la ol dm nt 

### 1neutnneeoompany. llfrn 

### ane aooldent, bmalth ad cccident, or life, horlth and aooldent lnmwanoe company,

or a88ooIatIolr,

or org*nl~atIon,

looal 8t UtUil a id U8 OO i a t hQ, Olí 8t8tO Vide mtUd l 8- 8OCiatlOtt t0 do 80 88 h8mb prwlbd, or MT 

### 9umon vho 8hrll 8olIolt 

### life, hulth or aoel**dUtt** fU t ua n c 0 OXí l t (I8 UI a@ttt for Ulr POP8,,,& Or iPr=0. 8m Or th88oOiati~ 

## not authorlrv6to do bwiAe88 in TOXa8t l l l, a8 h 0- b & UVtid Od **8ha11 b**  **guilty Olp**  **8 ti8daUlCr**  **WI, UpOn**  **OOfI~lOtlC% 8hd.l**  

### be find "y mum‘
not in lXC.88 of 

### Fir. Bumlnd Dollarr ( 500) au 8hall b h8Zl-d 

### frOr -OdVbtg a **11OOSk8e** a8 M 

### lnutronce8gont 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 O W p Mi.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& OPti**itUt 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** 

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