I 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 

"For your convenience, we are attaching to 

this letter certain statutory provisions which we 

believe have a direct bearing on these questions," 

Under Article 4989 of the Revised Civil Statutes, 

three or more persons may organize a number of different kinds 

of casualty insurance companies. 

Article 4998 of the Revised Statutes provides that 

any casualty insurance company may be examined by the Board of 

Insurance Commissioners. 

Article 4690a of Vernon's Annotated Revised Statutes 

provides specifically that when examinations are made by ,the 

Board of Insurance Commissioners of domestic or foreign insurance corporations, said corporations are required to pay all 

expenses incident thereto, Article 4911 of the Revised Civil 

Statutes authorizes and empowers the Board of Insurance Commissioners to consult any rate-making bodies of other states for 

the purpose of assembling data for the making of compensation 

insurance rates. 

On July 28, 1942, we released our opinion No. o-4289, 

addressed to Honorable 0. P. Lockhart, Chairman, Board of Insurance Commissioners, in which we held that the examiner appointed 

to examine a foreign corporation which required him to make a 

trip outside the State could collect all of his expenses from 

said corporation and that after same had been deposited in the 

State Treasurg, a warrant should then be drawn payable to said 

examiner for all of the expense3 he incurred on said trip. 

We think said opinion applies to examination of casualty insurance companies and any and all Investigations made 

thereunder the same as it does for the examination of insurance 

companies. 

You are therefore advised that the Board of Insurance 

Commissioners may appoint someone to make these out of State 

trips and collect from the companies examined the actual expenses 

and that the Comptroller will be authorized, upon proper application, to pay the examiner his actual expenses which he collected and which had been deposited with the State Treasurer as a 

result of such trip. 

Our reasons are stated in our Opinion No, o-4289, a 

copy of which is enclosed herewith. 
Hon. J. P. Gibbs, page 3, o-7067 

Your0 very truly, 

ATTORNEY GENERAL OF TEXAS 

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