. . 

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 Carrier 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' carrier may lawfully operate under such 'permit or 
Mr. A. Reagan, Jr., April 11, 1939, page 2 O-403 

certificate as the case may be, such motor carrier 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+ therein 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 lnjury 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 cariT6r, 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 necessity 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 renewal policies and bonds so as to provide contlnuous 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 O-403 

its discretion if it shall find and determine that 

the ends of justice will be better subserved thereby, 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 insurance, either as proviaed by the Workmen's Compensation Lawsof the State of Texas, or in a reliable~lnsurance company'authorized to write workmen's compensation insurance approved by the Commission." 

-. 

-, Section 5, Article 4682b, supra, Imposes upon the 

Board of Insurance Commissioners the duty of prescribing unlform policy and endorsement'.forms for writing all classes of 

automobile Insurance in Texas. The Board of Insurance Commlssioners 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 provides that such: 

"Bonds and insurance policies shall provide 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 durIng 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 - . . . 

O-403 

phrase "caused by 

accideht" In the statutory endorsement forms restrict and limit 

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