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## THEA~TORNEYGENERAL OF TEXAS

Honorable J.P. Gibbs Comniissioner, Casualty Insurance Division Board of Insurance Commissioners Austin, Texas Dear Mr. Gibbs: Opinion No. O-7067 Re: May the Board of Insurance Commissioners appoint an examiner to go out of the State to investigate certain foreign companies which are licensed rating organizations and doing business in Texas; if so, would the examiner be llmltea to $4.00 per day maximum expense .’ Your letter, which reads as follows, has been given our consideration:

“An occasion has arisen ih which It has become necessary for the Casualty Actuary and Title Director of the Casualty Insurance Department, to go in person to foreign states to consult with and examine Into the affairs of certain foreign companies and IicenaeU rating organizations, for rate making purposes.

“In connection with this and any similar occasional situation which may arise, we desire your opinion upon the following questlonsr

“I

. May the Casualty Insurance Commissioner, Casualty Actuary or a Director of the Casualty Insurance Department lawfully make such trips, examinatlons, consultations and Investigations?

“2

. In the event of an affirmatlvs answer to Number 1, would aald Commlssloner, Aotuary and Director be llmlted to the $4.00 per day maxlnUm travel expense allowed by the present Biennial Departmental Appropriation Bill (SB 317, Act 1945, 49th Leg.), 01” would said parties be entitled to charge actual OXpenses incident to the examlnatlons, consultations and investlgatlons?Han, J. P. Gibbs, page 2 0-7067

"Foryour convenience,we are attaching to this letter certain statutoryprovisionswhich we believe have a direct bearing on these questions," Under Article 4989 of the Revised Civil Statutes, three ormore personsmay organizea number of different kinds of casualty insurance companies.

Article 4998 of the Revised Statutes provides that any casualty insurancecompany may be examinedby the Board of InsuranceCommissioners.

Article 4690a ofVernon's AnnotatedRevised Statutes provides specificallythatwhen examinationsare made by ,the Board of InsuranceCommissionersof domestic or foreign insurance corporations, said corporationsare required to pay all expenses incident thereto, Article 4911 of the Revised Civil Statutes authorizesand empowers theBoard of Insurance Commissioners to consult any rate-makingbodies of other states for the purpose of assemblingdata for the making of compensation insurancerates.

On July 28, 1942,we released our opinionNo. o-4289, addressed to Honorable 0. P. Lockhart, Chairman,Board of Insurance Commissioners, inwhich we held that the examinerappointed to examine a foreign corporationwhich required him to make a trip outside the State could collect all of his expenses from said corporationand that after same had been deposited in the State Treasurg,a warrant should then be drawn payable to said examiner for all of the expense3he incurred on said trip.

We think said opinion applies to examinationof casualty insurance companiesand any and all Investigationsmade thereunder the same as itdoes for the examinationof insurance companies.

You are therefore advised that the Board of Insurance Commissionersmay appoint someone to make these out of State trips and collect from the companies examined the actual expenses and that the Comptrollerwill be authorized,upon proper application, to pay the examiner his actual expenseswhich he collected and which had been depositedwith the State Treasurer as a result of such trip.

Our reasons are stated in our OpinionNo, o-4289, a copy ofwhich is enclosedherewith.Hon. J. P. Gibbs, page 3, o-7067

Your0 very truly, ATTORNEY

GENERALOFTEXAS s/ Geo. W. Barcus

Geo. W. Barcus, Assistant. GWB:rt Enc. 1 APPROVED

FE3 6, 1946 a/ Carlos C. Ashley FIRST ASSISTANT ATTORNEYGENERAL APPROVED

OPINION COMMITTEE By WJF, Chairman