OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

HmorrbY e George H. Bat1 or, Chal.rmnn 

Board of' In aurence ConM asionern 

~untln, Texas 

mar Mr. Butler: Opfnlon Wo. O-7294 

ne: nether under the aurrent apyropriation bill official remmeratlon 

and expense@ lneident 

of out-or-##tata lnsuur 

may WI paid m 

from the Inm 

under Artial e 

Your letter requesting 

upon the ahora subjeot-matter $9 

%xamlnrtlon nt 8n 0u 

atatewn ts are 

eaoh month and 

part of the io 

ienae to the 

fir& aoturlf 

fore pyinft t 

at the end of 

urinlt the earl7 

ves some inconven- 

’ a Artlal e 46QOa 

th I.eg., Ch. 378, 

r under the aurrent appropriaeratlon and expenses upen 

ale 46QOa lnaurred In examaarue from the Insurance ~~amlnatlon 

ed b7 the eramIner’ affldavlt and aplrman of this Board, lrrespeatire of 

nsumn08 ampan under exmlnation has it 

that time paid the aaarued costs to the ~Xnmlnatlon Fund. 

*The Insurance Examination hmd in the State Treamry 

aonRtant.17 containa unused balenoes Of remittaneee from 

out-of-&ate ingurers for the cost Of examination by thl~s 

nepartment, conslstinp: of' 'the otber expensen of the Departmen t of+ Innuranae proper17 allocable to the examination,’ and represents the proportionate part Of the aost 

of the general oterhesd expense of this Department allocated to the various out-of-state companies examinedI HO COIY”*Ic*TIO* >s TO mh CONSTRULD *s A Dl,ARTYINTAL OPINIOH “*LL,s A\pPIOa” ”ml THE ATTOINE EEHERAL ” oil FII1.T Is*IsTANT 
l i+s, time to tj?su3 it., b eOo meDeoeseary s far the 

Comminuloner or hjr examiners to go &to another 

ntato for aonfermces nnd lnrestigationa which are 

no t aoncplete formnl exav:inatisn~ of any one oompany 

hut relate to examination of matter-e of a gmaral 

nature aiieatlnA neveral or al? cmmanies In the 

state alike- Xn such 0as~s it ir imprsatiaabls If 

not IRpoasible to fair17 apportion sml asseas the 

remunerutiou and axpsn,at r*lnnt the amwnies In 

that state who are or may be affected. 

‘Please &vi oe me wbeth5r th4 Cminslmer' II expenses and the oxaainer'e rennmoratlm, and expenees 

In aneh eases may be paid Pram the Iastmmae ExamInation Fund on the retaliatory basis provided In Artfefe 4BUQa uhan reriiied by the examiner’s affIdarit 

und approted ‘by the ChaIrman of the Board, irrespeotire of whether the aompanies Who ara er may he affeated are amassed few rruGh remmeratitm and cllprnse-' 

fau s0aaupaa~ this3 r6quest *it& a rerf fnll 8i~u~anlon 

of the various statntan, appropriations , and departments1 onlnions relevant thereto, for wMah we thank mm+ 

Article &QOa (Rsv. OiV. Stat., Vemou's aodifieat3on) 

is aa ro1tswsi 

*The expeas08 Of all 9Xaminationm Of domestie 

insuranoe aextp*nier made m behalf nf the 6tat.e ni 

TUXSS b7 the chalram of tbe Board of Insursnae 

Comdsaioners or urrder his aathoritjr shelf ha p8id 

hy the corporations examined In au& 88Mmnt as the 

Chairman of the Beard of Insurance Coarmlnnlmers 

shall oertlfy to be just and raanonable~ 

l Awmmmmtt for the expannse of such dontQIatic 

exaWll¶atfen, rhiah shall he sufflaient. ta aieet 011 

the expennee and disEbursementu neeassa~m to aampl7 

with the provislo~a of the lows of fexsr relating 

DAY the examination of insuranae aompaniss and to 

aonrplg with the prerfsicms of Otis Aat, shall be 

nmde hy the Ch&i?man nf the Board of Insuran0e &mal.naienero upen the onrporatlW* or ansoef~at%.ione to 

be exastlned ta%inp: &to aonoideratim annue3 premlum Petreiptu, and/or admitted aasete and/W *na%iranee in Puree; prorSded nrch a~s45~4nt5 f&411 be 

made and anIleated OZIIJ at the tine such examinntlnns pro made. 
%morable George BI Butler, Chairman - p@ge ~3 

nAlX WRS aolleoted hy the Chairmen of the Board 

of In wranae C0wd sdoners , or under his authorItyron 

atmount of the 8oat ai esam~natlonn l ssesseU ss hereinabove prorldsd for shall he mid Into the state 

Treasury to the aredit of the Insurance Examlnatlm, 

hm%; nnd the salaries and expennee of the aatuarr of 

the Roartl of Inauranoe Comlasloners and of the examiners and aaslstantsr and al? other expanses of such 

examiaations, ah811 be pa14 upon the oertliloats of the 

Chairman of the Roar% of Insurance Commlasioners br 

warrant of the ~emptmllor %ram upon suah fund in tbe 

Gtate Treasury. 

aIt at any time lt shall eppear that a%dltlmal 

pro-rata l aseasmmts are neoeasary ts uover all ai the 

expenses and dlalmrsemsnts reqnireQ by law and neoesoary to oosply wltb this Aot, the same abrll tm rnsde, 

am% any wlrplus arising from my and all mah aswasmerits, over sa% above aush expensea and dlabursemmts, 

shall be applied In reduotlau of subaeqttsnt aoaeaamenta In the proportion aosessed so that there aball 

be so asseawd an6 eolleoted the funds newaary to 

meet auoh erpenwa md dlabursaments and no more. 

.Ia wae oi an examimatlm af a campany not orgaaiwd under the low8 of Tesar, rbetber suoh examinotlou 3.8 ma& by tbo Texas autboritl.ea *lane, cm faint- 

'17 with the iasuranoe supewiwry authorities of motber state or ntates, the expenses of sueb i3xaainetloa 

%ue te Texan' part3olpation therein, shall he barne by 

the aomvar~f under examination. Payment of suah ooat 

nhsll be nw¶e by the sompen~ upon prea%ntetiaa of itemlaed wrlttee statement by the Clmlrm~~n, and shall aonslut of tbe examiners’ ramnnerat~im an% iixpeaaesl an% 

the other expenws of the Department oT.lnauranee preperly al.Ioaabl e to the examinatlen. Payment shall be 

mnde direutlp to the Chairman , and all mmey oolleate% 

hg rmesmmt cn forefm camanies for the oost of exfmiln8tim shall be deposited in the Mete Treamry by 

the Chairman to the oredlt of the Inwrauoe Exaalnatlon 

P’UTIQ out of whiah shall be paid, by warrant of the 

htata Comptwf 1 er of Pablfc Aorta on +ouaber or the 

Chairman of the Board a!' Inwranee hnmias~oners~ tbs 

exrmfners' remrmeratlon and expenaecr in tbe amomt8 

detetmlned by the method hereinafter provided, wbsn 

rerlf'led by their afiidarlt amd npproted by the Chairman 8 and said money is hereby appropriate8 for that 
I ” uonorable George IS. Butler, Chairwsn - page 4 

parpew, tbe balanoe, i.f any, to remain Ln the Ineurran# ?Sxasinatlon Fun% In the State Treasury auBjeat 

tn be expmd,ed for the purpotmn as sre sthrr kds 

plso~. there&n. FZxmltneru’ remunoratlon and erp6nsea 

shall he the same as that which would ho paid by the 

hams ntate of+ II oompoay under exam~natian tn persons 

wnductinp the. examinatlOn oi’ a Texas eompan~r dad ttold to do business In that Stnto. Sf there, be no 

rebognlGed aharge for uuah se-ice, the &ainaan 

shall tlx the remuneration and expense 8IloWanoe 

of the oxamlners at woh reasnnshls f lgtve sa ho may 

%etermlae .I 

We eurreat approprlatlon involved la aa follows~ 

.siWw tbe purpose of payiag tbo rorogolnff examhatian apenae and aueh add3ti.onal er suppl,emobnt81 expenw 8s is neoeaary incl%hlt to examia*tlon or lnwramw wmpanlen doalalled outside of Texas, and for 

defraying all other i!ixpauasa neOeasary for the adrinlstrafion of tbe provisions a? Chapter 1BS of the denen1 Iaws of the Regular Sesalrm of the Forty-a4aond 

I,eglalature end Chapter 264 of the 0envx-d Lawe of 

the Regular 156~~141 of the Forty-BDllrtb f.eglslature, 

and any an% a11 amedmtuttu thereto, and se rmen%e% 

by Rsnate 1111'1 a67, Aata a? the Replar Rea8iCm of 

the ?erty-Mxth lJegislaturer 18311, there is he-by 

l ppropr la ted all fees and l swswemts aolleoted adar l atbotitp of said Rxamlnlng Law, such portion of 

tb6 fess oolleoted under Artiele .lRmM Aata lW39, 

Forty-Bixtb T~:egislrturer 6. Bb 104, as may be tramstsrrd by the Life laauranos C~lasinner, together 

wjtb oaf balaneas 8t the end af a preeeding fiwal 

year for each of the l’lwal~ years endlnc August 31, 

19/F,, and Augast 31, 1947.' 

In the course ol Your ecllansnts p err: 

l * + e. The Cnaptrollor has eallod our attentlm to opinion n-4280 above referred, ta and has a%- 

vised Q* that collection from the out-of-stst* oompsnlea aa@ preeeda paymant ta the exsminor. 

gAptla10 46R&1, aa amended by PBnSte Bill -7 

ot the 4Rth Xegis?aturo, @rOri%en in park 'e . l 

and all money col.leete% by assessment on ia~8la, 

companle~ for the cnst ai” etamlnation shall be de- 
~oitodlnthe Btotofreo~b]l the Obolnuo to 

tbo ered~ t af tbo Inslroneo Bxominotion tund out 

o? utiieb ho11 bo pmid, bT rorroat of tbo Stat. 

Comptroller of Publio Aoommta an rouohsr ot tbo 

Cboimon or the noord or 1nawoaoe Cam@lSOioner8, 

tbo a8wtinoro’ cm8morotlon 8nd upenneo in the 

amounts dotermlaod by t&o nothod her~inrikr preride& whoa rerif1.d b y th o lr litld8rit mad OQprored by tlm Cbolmon 1 mad uid *enor lo borow 

op*roprioted ror tbot purpO00, the bolama, it 

may, to remoln ia tllo Iaaroa0. xxomilJotlen mad 

la tbe 2kte Tswoaury ~nb jeot to be upaadod for 

tbo purpouo 80 ore other fundo pl,rrsod tltoreia.* 

The •8ab~ in to be paid OUt Of tbo m &o dir 

tiasplished from out of the l 0torli m0n~ paid bk 

tdm eplllab7 the iaurmloo eompony* A11 moaiao ia 

~09% io tbo cboim'o de7 to oolloct tlw 

ore o,pproprloted apo8itloolly ror that purunto rrea the smounaae eompmEy. men he o&g* 

tb@ -a~#OP’rn ~OUOhhir Oad @ppOT@o aA0 OmdOTitb 

be d&ii*0 thot eol1eoti.m or tbo usrats obom 

en the l tthlorit boo eitbor baa mod0 tron the inuromuo mamony, or that the Caaiodoaer la tbo 

dloabrrgo 0r h$o dut10a till eafloot it. 

'It ia utaltted that me long no tbem.ora rmifloiamt menho in the lCxomtlnotlon ?@nd to pot tdw 

uomlnor'o ~asshar. it io the duty et the Cb&raon 

oleno to oee tbot the aoot fm oello6ted !‘reu the 

uotniaed akmjvony. ond tbot it to not the duty tiP 

the @omptroller, md sorreopandt.n@~ net bio prorogtiro, te ge bobbind the Cboim 8 OppFoTol at 

tb0 uodnbr* i +ouelmr ma rtCidrrit.* 

We or0 in ooeord with your 86noluodtmo t&w wrpreoaed, frem rblob it follewo that faur queotiona sboald be anbered in the l mroro fir o . It i II tbe Immmmee %matlaatSm Rand 

that 1 m opproprimtea for pomont of the ex~oasao lnvo?rod, and 

not the ooxiponont port8 or tbot itmdr to be derived from the 

porM,oalor ummluotioa or uomlnotiaaor MI oeaaunt of whleb a 

alain lo preoented.