### 39

OFFICE OF THE ATTORNEY GENERAL OF ‘TEXAB **AUSTIN**



### Youhaverubmltbe8 oogly Of eontraot of agoaae an08 GoBjwlny

ane b;u P drtmmlaitq whether m lmat8rn LmJ lnBuruno8 5ent c~e~tlon at VSraon’6Betfre,b

Cl?

W8 deem tt ne ulitmlb%8& to n8, and relBt1onBhipext&tlnlI GoNpBnyUQd @aal

‘ponbroa, r **eontraot** mbslQt8d la

d tram a ltudy of Ch8

### 392

**1s the4**  **agect** ru~iehtb6 **ua own**  **otfiue b**  **rry iwry**  **tk*** OoPp~'6 nas8 on that offlee Qoor If ho bs8lr88,**bat he**  **la not**  rawire to by t&a aoargan$, 8aad tblr 18 el80 trao of 

### llatlne;r l.n t*lephalo

xUmctorles.
The agent wing swh ocmpanfofflaer a8 8ra flrvt amtloa4dare riot

re8trlotadrole&y to the **tmn6wtlon or**  **OOO*PUY** btislne88

therein,80 lon& 08 b&r u88 or it doar not interterm wltb ttus

aompenp8 **buslnssa.** Ot ooiw80, it he mrnI8h.8 hl8 own 

### OfflOe,

he 18 at liberty to u8e it in say SIUUW l&hat he 8~8 at. 

### Agoutsare not ropuire4 to k*ep say **raoord** 

### ulmt8onrr In oonneatlon

ultb the ooqpany*ebu8lne88. They ara requls8ato raport to tke company on‘i on thh4torae 8ubmltted in oonneotIon rlth their outatandl@ po lola8,

The agent la not reqtiirod to pro&ooe a aln%auavolume of baefnsaa. Xicmever, ii ths **barhere** 9raduoe4by any maln **agent** lr 8eewd by tbn soajwny ln8u#lol~nt to jrutlfy 

### the oontlnaanoe of tho contraat,the wntraot I8 t*mibat*d. 

### MO ytent Is reuulmd to, 

### In my manner, awowt 

### for hla Mae, nor la hr repulmd~to aover &my apeolfia6tetritory

### aPalgna$ to hla **at** any **tlae.**

Tbo o&ant is not requrfre& to rfdti u9 afiy **lnformtlon furnIshed**  blm by tba aompany, **but** t,he oo anil foeslbla,fumisb to lta **a6aats** mob =+G **y dew,**  **when possible**  olmstlon ln the po8- res~ioaoi the aompaay whiok IMAY**iwreaeo Oompa~'bWine8a.** 



### Tke 4qewts 

### ato not **repuirsd** to 

### lnreaetlg44te oLalm0or te teke 8ny l

otioo whatsoever ia oonasotlon wltb cilaiam.
Th% oompany

### doe8 not sponwr 8~188 .Oanrpai(as, & in oontwotion therei8ith orret prlaar und bomume a8 a rpeolal Ln6wmaent to sgsnta to 1noreari Ck8lT indlvibualpro+la%tioa.

A6ontr are not5

allowad Umwiira tiooowta for **a@wnoor** 

## agaiwt

mewwd 0oamiB~1ow. But la 8ow f** WABritoriowOW%8 thtr ooanpany

wilt 

## aealrt

ita agtmts by makin& t;hpapp direat 3~6nf~.
&ents am peraltted to a&vezttirti la **their** awn wa8 without sutmlttin$Ek% copy to the 0oaQaayr 3owsver, is tasao&plttl~'Snaee RppwxS in tk8 6dv%rtiSbg Copy, tk0 a&e& 16

regulr%dto eubrclt the copy to tke oempany for Its approval before It is published. This reqolramnt IS ma* In orda that the Owpeny may be aa8Uxeb t&t 119 raiSxOQr%Sent*tiW or Ei8habing St&tteWW5t

i8 9ubll8hd in o6woOtion with it8 bUSina88.
Agcnte en prohibitediroe entering tb% r%nioe of any other lilo lnauranosOOmpm~ or taklag 8ppllo~tion for lnsur- ~108 wfth my other llte inauauao%conpmy **without** ths wrttten 8onS%Zlt

02 the **00-w.** Ag%nts, **bowovr, are**  **pormltted to**  

### -aeoutabrokerageoonbXaot8for 'tbs pl%%ing of i%@tirat% surplus bu6lntX38

rpltb other ao~p%ni%s. **Agent8** maf SOliCitbU8in888 In suoh wnner es tdA%y delr%xe, *nd the contraots or the oompeny 8~16 tke rulrs w+ern l gway organization do not petit the company to 

### aad xegubtlons 

### governing tbo 

### munn%fin whloh the agent@ 8oUoit bU%in%SSmd carry on tb%ir %%ttvlty. Tb% 8(eDtS WY %OW ti @go 8% thay plea88,and ar% not dlmated or OontrO~sb %S Eo WhW ttsy ok811 8oliolt rot 1n%uswno%,nor %8 to tke nnner in vbioh thej mka such SOlieitdiOn.

Tke age nts ax6 not roqulxo4 to a ad l tiredmunt 0i tlmo aad work on the **produotlon** of life CL uraao%b~8ln%88.

And tki%

OOarpany

4008 **not** rUrOi5ha@SltS pII(LD# Of **txWnS** gort8tlannor exsraiss oontrol ~av%r the m%8n8 ol'

traruportrfioo. rel%ateb by suoh a@mts. day eXp6We SOPor tl'MSport8tioP 18 that of the agonth

The liabilityat &UthW%St%33 US. lnSUl'~O% w t9X M%qphyWnt **t8388 UpOU**  W%g%S paSO t6 8W poadrol OlId UgWt8 tening **una%r** like **aontrat3ts** d%p%mls uptui an %p~lloat~onot the 

### pwtloular Saets present t6 

### tho portirrcmt prOVfdOn8 

### of OUX bNQ.
Axticrle

mal-b-19 (&I (11 rwQ* a% follaw8:
r*Lm@o~nt* **subJ%ot to**  the othar ~rorlelon8of tkie **6Ub-68Otbl,** wi%ulill E%ld%%, iaO$adiagt S%niM la intentate OosaexaI), periormd ior =%&%a or sin&or eny ocmtraatof l-dim, rrlttw or am& or9Nu or ia9li%d,provldod tht any seniors perionoslr by m lndioidual for wages shall be deem4 **to** be CMDp&P@Dt394

subject to thle ht ualasr and until It 18 ehom to **tbe aetisfeotlon**  **of** the Oom~isrioathat 8oob inditidual &AS bow and will **aontloue** to be rrw rx!o* oontral or **d~rwtlcna** over the perf~xmnos of rue& I)eX'liOeb,

both UUber **bf8 OoEtreh**  **of 8OS**  **’ VifJe** **and In**  fad.'
%a oennet s8Oep8 tbs SOaCrhl8iOn that the hgl8krttUW ~twda4 and that we 8hould oona1d.w and Qo88lb4 crpply the ooaSW b4W prinOipze888 hia aOw in Our IBU8t#kr Wd 8OXVWt 08808 in detsminlnp. whether 'suah 

### ln&vlUu~l. h88 

### bow andwill eontinuu to be 

### free from oontrol or dlnotioa mef 

### the perforaenoe 02 8X& W~iOO, both Wdttr this QQ~trPQt'Of8erV1W R&d iZl i#tOt.'

M swafWthU& Of the aUthQriti986f QthUX atot Span Ch%8 8UbjdOtdl8010808Opln.iionR tmm the SUPIWUJ coput Or QO~Tado, Commot:out, north aarollna,Fia8hhgtonand Vlr8188lppi upon tha oonetruatlon of our or a 8ldl.e doilnitlonof *ith ml8tlon to the **ufnwp10ymnt** Coqp4nratloll Law.%&oJraot*

We learn frm the kpialon of Cbiei SIiatios Maltbrlo **of** that **“ cupxwu**  **aourt or**  Gwnwtlsut **132 Ip.**  **tf. rlfa**  **sac. co.**  **vu. Tons,**  6 ktl. (Bd) 640, tht in appmdaatelg tuw&p-nine crf themrsble Orville S. Carpenter,Page 6

**,,t$,t88 6Itd**  **the Dlstriot**  **Of fk&USbiS,**  where etatutes sirnllar to ours have been adopted, either by 6pealtlo statutoryexemption **or** administrative ruling, llte **lnrurenae** agent8 **oorpematsd by**  **aosmis8lor8 are**  examptwl. Thsrs are, however, **rive state8**  **I holding**  **that they**  are within tha **8tatute. ke**  **know from**  **oollat** oral inr0onaatl00

that **prior** to,tbs 1999 amendrmntor Artlola SZSl-b,Vsmon*r Re~lsd Civil Statutes, tha Terse ~namploxmant Compensation

COBJEI~SS~QB

had enaoteda regulationexempting ~wr8noe aompanl~sfrom aoverage under the Aot. The lQS9 amz&sianthea provfded **8** naw deflnltlon

### of l amplo~nt.*
The flaprem court or the state of Co&orado in **1ndU8-** trial **COlam$S8iOn**VS. PorthuesternLDutual Life Xm3umuxoeCo., Bo.Pao. ted) MO, in r~ote oloeely akin to them r0wa hare held that the **agent8** were aervanteof the insuranceoompany and ldre 

### inl

employment*of the aompeey. **A** oonourring**4eoislon ir**  r0ond in the oaas of mmmp1,oynantC~n8atlon comlg!lionVII. **Jerrexeon s.**  **L. Ins.,**  co., 2 S. 6. (26) 624 tEtoz-'th, Ciroltna 2upram8 Court). Eowever, =a ooqwldar the ai88CmtiiIg opinion cif Ywtioe &n&ill of the Earth CenrllnaSupreme tlourt a muah 8trorrg~r

ehtl more logloal opinion. W&are abh to differen-, .tlab o\lr

OOneltI8iOS

troa? that ln the two SS8Ss above mentioned, for th0 rM8OS that ti both Of #088 8tate8 tha statutediffSr8 **from** onr **Texes statute**  **in** it8 dcrflnltlon of w%mp&ymentia
'pa, d%8tln8tlOnllr

tim betWOWl 8OlWULt8Wld iRd~8lld~t oontnotore in the'Sis-8tetemmt of the Law or Agenor, "I&ipea&ant~Contraotor,* p. 468. We think it mollt appropriate **to** thohs **solution** Of OUF QUS8tiOn rhSn it 8Sv, "AS S@BS$ rha **18** not **eubjsot** to oQntro1 as to the wnrmr in uhlch he **~8rtorm8** the eats whleb:

eonstltatothe eteeationnor his a~nay l8 in a 8irikt **Ttbhtion** to the prin8lpal 118to 8UOh 

### oondw% as 01)(1 who agree8 only to eooompli8bmmS phy8loa;l rStit8. POr the **purpose** oi **datemining** liablllt~, ~they azy, **both** independent

eontraotors

. . .I

T&4 aontrol of t&e phT8iSal aonduat or thr inditldaal le prs8ant in Wie ease oi a.a4tryant, but **leow** in tha OS,80 of en lad8pemdeat oantrwter. Qarter aobUoation6, Zne. .V8.Davi8, **(Tax.** CiV. .App.)6@ S..,W.ft%) 6H), WhW the Will of th6 QT **ploy4r** is represented~~wly **a8** to the ~r88ult

or tha vork and not e~ to the ~sSSB by whioh'it i8 oartied 6ut.m the 6staihJ **lnvolTeb in**  **its &mrf%?mimaa,**  the psr8an randeringtha 8SrViOSRQn0Mbl.sOrville

is 5x1 independent**oontmotor.** LO?? **:GAf** Giy co..vu, Kel+y,

ana **sas** aflnotiktlona In EO h. 2. 11. 684; tie reeognltetbe ract that thsso caaea era prlnolpallyoeawa 1nvolvIn~tort llabilltyor tbo employerror the aotx 0r an IndepenCent obntrnotor or servant. 8. **Carpenter,** Page 6

In the ease or the lnmxanoa **agentec** under oonnlderacion, In our oplnlon, that neeea8arydseroo or control. over the phyaioal**oonduot of**  the mts 1s laoklng to eoastftute him 8 8ervMt. In etr'sot, the lasursnoecompany @rem him a mual ef lnetruotlona

as to the manner or prepsrfrqg and rtUq eppllcations,but thsreerterrelies almmt entirely **upon** the desire of the agent **ior** oommIsaion8 as a surrm8nt vmtlvatingtorae **to keep**  **the a&tat**  alert to dew **prospeots.**

?;e else oall attentionto the raot that **the** agents muat be liceneed,riot **by the**  **lneuxanoe oompar.~y,**  but **by the**  9tate or Tuna lndiaotlng**to** us that **the** &ate treata the oooupatiacof **solloltin~** inauranae as i **budma InQepsndent**  **of** the ampany the agent hay represent. Th,e fnsuranoeCcmmlsmionec, **rather** ,thsa

the oompany,deteradam the qualitloatfon~ and Ilaoral e&araoteror the agent. Ir the xneuranoeCosimlrs~on~r rsvoker hle lloenee,hie egonay la automtIeaUy ts~lnated.

,oUreOiI6tPUO~iOB Ot ths intWprStatiOA t0 be **(iVen** 8estlcm 14 la) ll).ti thla? InnsEyros

lq nq) without preoedant. **Wader** raeits

riailar to the preseat raotual sftuetlon,ohr Tratsury Departmentof the united S%at(lb haa rsrusod to ertemI the oovemagoto lnoluds **the.a4pmtcl** 0r insurmoe aospanlaa. We are mere of the dSfteremccr LB the wage or the Pedmral Ecohl Securitymt and tha Temm tlnemplopnent Cmpsneatlaa L8W. 

### Ffowvsr,

those rulinpr

are pertinentend arcs errtitled

te oonsldorationIn arrlvln& at a pr~prsr oonstruotfaa

Of our A(rt. Eo, elao, realize that eaoh rullw mitt depend cm the fnatcl surrounding ths reletionahfp batwsen the ooa~peoy **and** agent.
In the oaae 0r **mrthwestern** rutcml Lit8 Ineuranar Coapanyvs. Tone, 4 ktl. (Sd) 640, tEe Duprme COW Of Qonneotlout applied the master - msveuatand independent au&fra~tor tee, **or** the aompany~saontrelof MO aiyonta,Thety, too, **did not**  think that eowaiaeionegent8 

### or a iii6 imoramo ocarpray **were** In the *eeploymnt” of the aompaayaa **that** teW in dorlnad In the Connatrtiaut statute. Bo.r

othtsr Rood a~isourrrlons

of **the gonorabl4**  Orville r3. Carpenter,Paga 0

tidependant

**oontraotor** and meBter - tlervant reletlonshlpin **ULt~loyrseat aoiqpoaaation**  **mittare, 444**  Zieehtngtoa Beoordor pubmhlng Co. v8. Erimt, 91 Pea. (gd) 7lt3; T4Xa6 Co. vt#. (Bbg.l.80,

et 81, 187 '0. 880.

You an, themforo, advisedthat under the faotr &&tted to us that the age&, Sam Pondron,a0a all agent8 @ez a llke contraot with the Eouthtostem Llre fnsuranoe C-y are sot in tha Vmploy'sasnt* or thet ocmpany a8 thet km i,e

derlxmd In hrtlole 58%1-b, Seotlon 17, Submotion ,(g) (1).Varaon*sHavlsed Civil Statutoa,1925.

**Yours vsry**  truly



### BY

APPROVEDJ~ 24, 1940