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### 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 ~thelii~lusion of thFphr&se ncausedby 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 receivedby this office.

.,

.., ,Se&tion5, Article 4682b,Revised Civil Statites reads as follows:

"Ihaddition tb the duty of approving izlbssiflcations

and rates, the Cominissloner shalX.prescrlbepollcg forms for each kind of lntirance'unlformin all respects except as necessitated by the dlfferent plans on ijhich the various kinds of insurer% operate, and no insurer ijhall

thereafteruse any other @rm In writing automobile Insurance In thSs State; '. provided, however, that any lnsurer,maguse any form.of endorsementappropriate to Its p~lanof operation,provided such endorsement shall be fIrsi5tiubmitted

to and approved by the.Coql$- sloner; and a* contract or agreementshot 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 shallbe sufficient
cause for..revocation of license of such,Fnsurer to write automobile insurancewithin this State."

Section 13, Article glib, Revised Civil Statutes reads as follows:

'Beforeany permit or certificate .of public conveni&nceand necessity~~may be is,ved ~to*,any-'motbr

carrier ahd before any motor'carrier may lawfully operateunder such 'permitorMr. A. Reagan, Jr., April 11, 1939, page 2 O-403

certificateas the case may be, such motor carrier shall file with the CommLsslonbonds and/ or liisurance

policies issuedby some lhsurance company includingnutuals and rdciprocals Op bonding compang~'authoFlz6d by law to transact business in Texas in anamount tb be fixedby the Cotiisslon-under such rules atid regulations'
as it may prescribe,which bonds and Insurance policies Shall provide that the obIlgoi+thereinwill peg to the extent of the fbce amount of such insurancepolicies and bonds all judgtients which may be recovered against the'~motor carrlsr so fiIing said Insurancepolicies 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

judgmentswill be paid by the obliger in said.

bonds and insurancepolicies lrrespetitive of the solvency or insolvency of the motor cariT6r, provlded, however, such bonds and policies shallnot cover personal Injuries sustainedby the servants,agents or employees of suchmotor 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 jurisdictionwlthcrut the necessity of making the insureda 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 suchmotor 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 explratlondate of the-existingboiids and policies, file such renewal policies and bonds so as to provide contlnuous andunbroken p?2otection to the piibllc tiavlng

legal claims against"suchmotbr carrier, and in the event such renewalbonds and policies
are not so filed, the Commlsslon,after notice to the motor carrier, and hearing,may, wlthinMr. A. Reagan,Jr.,

### April 11, 

### 1939,page 3 O-403

its discretion if it shall find and determine that the ends of justicewill be better subserved thereby, cancel such permit or certificate for failure to furnish and provide such bonds or insuranceas hereln required.

"Eachmotor carrier shall also protect his employeesby taking out workmen's compensationinsurance, either as proviaed by the Workmen's Compensation Lawsof the State of Texas, or in a reliable~lnsurancecompany'authorizedto write workmen's compensation insuranceapprovedby the Commission."

-. -, Section 5, Article 

### 4682b,supra, Imposesupon the Board of Insurance Commissionersthe duty of prescribingunlform policy and endorsement'.forms forwriting all classes of automobile Insurance in Texas. The Board of Insurance Commlssioners In compliance therewith has prescribed standardpolicy forms Including statutory"endorsementforms for attachment to Dolicies covering trucks and busses operatingunder a certifl-, cate of convenience and necessLty from the Railroad Commission of 'Texas.
Sectlon 

### 13,Article qllb, supra, specificallyprovides that such:

"Bonds and insurancepolicies shall provide that the obligor thereinwill pay to the extent of the face amount of such Insurance policies and bonds all judgmentswhich 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 occurrfngdurIng 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 occurringduring the term of suchbonds and policies, caused by accident and arising out of the ownership,- marntehance oruse 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 occurringduring 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 "causedby restrict and limit accideht" In the statutoryendorsement forms the liability of the-obllgor to the extent that It Is contrary %Jthe specific language of Section 13, Artble qllb, supra.

You are respectfullyadvised that It Is theopinion bf'thlsDepartment that the inclusion of the phrase "causedby accident" in statutoryendorsement 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/GeraldC. Mann ATTORNEY GENWAL OF TEXAS