39 

OFFICE OF THE ATTORNEY GENERAL OF ‘TEXAB 

AUSTIN 

You have rubmltbe8 

oogly Of eontraot of agoaae 

an08 GoBjwlny ane b;u P 

drtmmlaitq whether m 

lmat8rn LmJ lnBuruno8 

5ent c~e~tlon at 

VSraon’6 Betfre,b Cl? 

W8 deem tt ne 

ulitmlb%8& to n8, and 

relBt1onBhip ext&tlnlI 

GoNpBny UQd @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 ocmpanf offlaer a8 8ra flrvt amtloa4d are riot re8trlotad role&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. 

Agouts are not ropuire4 to k*ep say raoord ulmt8onrr 

In oonneatlon ultb the ooqpany*e bu8lne88. They ara requls8a to 

raport to tke company on 

‘i 

on thh4 torae 8ubmltted in oonneotIon 

rlth their outatandl@ po lola8, 

The agent la not reqtiirod to pro&ooe a aln%aua volume 

of baefnsaa. Xicmever, ii ths barhere 9raduoe4 by 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 apeolfia6 tetritory 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~ioa oi the aompaay whiok IMAY iwreaeo Oompa~'bWine8a. 

Tke 4qewts ato not repuirsd to lnreaetlg44te oLalm0 or 

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 indlvibual pro+la%tioa. 

A6ontr are not5 allowad Umwiira tiooowta for a@wnoor agaiwt mewwd 0oamiB~1ow. But la 8ow f** WABritoriow OW%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 tas 
ao&plttl~'S naee RppwxS in tk8 6dv%rtiSbg Copy, tk0 a&e& 16 

regulr%d to 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 prohibited iroe entering tb% r%nioe of 

any other lilo lnauranos OOmpm~ 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 

-aeouta brokerage oonbXaot8 for 'tbs pl%%ing of i%@tirat% surplus 

bu6lntX38 rpltb other ao~p%ni%s. 

Agent8 maf SOliCit bU8in888 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%f in whloh the agent@ 8oUoit 

bU%in%SS md 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 a gents ax6 not roq ulx o4 to a a d l tired munt 0i 

tlmo aad work on the produotlon of life CL uraao%b~8ln%88. 

And tki% OOarpany 4008 not rUrOi5h a@SltS pII(LD# Of txWnSgort8tlan nor 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 liability at &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~on ot 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 ~rorlelon8 of 

tkie 6Ub-68Otbl, wi%ulill E%ld%%, iaO$adiagt S%niM 

la intentate OosaexaI), periormd ior =%&%a or sin&or 

eny ocmtraat of 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@Dt 
394 

subject to thle ht ualasr and until It 18 ehom to 

tbe aetisfeotlon of the Oom~isrioa that 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 prinOipze8 88 hia aOw in Our IBU8t#kr Wd 8OXVWt 08808 

in detsminlnp. whether 'suah ln&vlUu~l. h88 bow and will eontinuu to be free from oontrol or dlnotioa mef the perforaenoe 02 

8X& W~iOO, both Wdttr this QQ~trPQt'Of 8erV1W R&d iZl i#tOt.' 

M swafWthU& Of the aUthQriti98 6f QthUX atot Span 

Ch%8 8UbjdOt dl8010808 Opln.iionR tmm the SUPIWUJ coput Or QO~Tado, 

Commot:out, north aarollna, Fia8hhgton and Vlr8188lppi upon 

tha oonetruatlon of our or a 8ldl.e doilnitlon of 

*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 the 
mrsble Orville S. Carpenter, Page 6 

,,t$,t88 6Itd the Dlstriot Of fk&USbiS, where etatutes sirnllar 

to ours have been adopted, either by 6pealtlo statutory exemption 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 oollatoral inr0onaatl00 that prior to,tbs 1999 amendrmnt or Artlola 

SZSl-b, Vsmon*r Re~lsd Civil Statutes, tha Terse ~namploxmant Compensation COBJEI~SS~QB had enaoted a regulation exempting 

~wr8noe aompanl~s from aoverage under the Aot. The lQS9 

amz&siant hea provfded 8 naw deflnltlon o f l amplo~nt.* 

The flaprem court or the state of Co&orado in 1ndU8- 

trial COlam$S8iOn VS. Porthuestern LDutual Life Xm3umuxoe Co., 

Bo.Pao. ted) MO, in r~ote oloeely akin to them r0wa hare 

held that the agent8 were aervante of the insurance oompany and 

ldre in l employment* of the aompeey. A oonourring 4eoislon ir 

r0ond in the oaas of mmmp1,oynant C~n8atlon comlg!lion VII. 

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 Cenrllna Supreme 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 statute diffSr8 

from onr Texes statute in it8 dcrflnltlon of w%mp&ymentia 

'pa, d%8tln8tlOn llr tim betWOWl 8OlWULt8 Wld 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: eonstltato the eteeation nor his a~nay l8 in a 

8irikt Ttbhtion to the prin8lpal 118 to 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 8SrViOS 
RQn0Mbl.s Orville 

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

ana sas aflnotiktlona InEO h. 2. 11. 684; 

tie reeognlte tbe ract that thsso caaea era 

prlnolpally oeawa 1nvolvIn~ tort llabillty or tbo employer ror 

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 neeea8ary dseroo or control. over 

the phyaioal oonduot of the mts 1s laoklng to eoastftute him 

8 8ervMt. In etr'sot, the lasursnoe company @rem him a mual 

ef lnetruotlona as to the manner or prepsrfrqg and rtUq eppllcations, but thsreerter relies almmt entirely upon the desire 

of the agent ior oommIsaion8 as a surrm8nt vmtlvating torae 

to keep the a&tat alert to dew prospeots. 

?;e else oall attention to 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 fnsuranoe Ccmmlsmionec, 

rather ,thsa the oompany, deteradam the qualitloatfon~ and Ilaoral 

e&araoter or the agent. Ir the xneuranoe Cosimlrs~on~r rsvoker 

hle lloenee, hie egonay la automtIeaUy ts~lnated. 

,oUr eOiI6tPUO~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 Department of the united S%at(lb haa rsrusod to ertemI 

the oovemago to lnoluds the.a4pmtcl 0r insurmoe aospanlaa. We 

are mere of the dSfteremccr LB the wage or the Pedmral 

Ecohl Security mt and tha Temm tlnemplopnent Cmpsneatlaa 

L8W. Ffowvsr, those rulinpr are pertinent end arcs errtitled te 

oonsldoration In 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 

Coapany vs. Tone, 4 ktl. (Sd) 640, tEe Duprme COW Of Qonneotlout applied the master - msveuat and independent au&fra~tor 

tee, or the aompany~s aontrel of MO aiyonta, Thety, too, did 

not think that eowaiaeion egent8 or a iii6 imoramo ocarpray 

were In the *eeploymnt” of the aompaay aa that teW in dorlnad 

In the Connatrtiaut statute. Bo.r othtsr Rood a~isourrrlons ofthe 
gonorabl4 Orville r3. Carpenter, Paga 0 

tidependant oontraotor and meBter - tlervant reletlonshlp in 

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, advised that 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*s Havlsed Civil Statutoa, 1925. 

Yours vsry truly 

BY 

APPROVEDJ~ 24, 1940