OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN

Hon. GeorgeH. Sheppard Comptroller of PublicAccounts Austin, Texas
Dear Sir: OpinionNo. O-1698

Re: Compensationof Actua I)epartment

on examination By your letter of Novembe

in the InsuranceDepartment the fact situation reflecte your letter,which facts Fleet, Actuary in

Board to rssist Life Insurazc Mr. Van Fleet of Insurance CoImnissionhe Chairman of the an insurance cclapany towit, the American It appears that. October on this out ars that the rate of day, the examinercs remunerahome state of the company nducting the examination of o business :!.n

that state.

ars that Mr. Van Fleet was inadvergular Exomination Division payro91, or the entiremonth.of October, and

It seems that the warrant' for be issued in order to work an adjustment auned to be due Ur. dayshe served as examiner, Van Fleet for the eight and the emount actually paid him for themonth of October, inbluding the eight days he served as examiner,under the item appropriated for the payment of the Salary of the Actuary of the Examining Division.Hon. George II.Sheppard,Page 2

Senate Bill 397, passed by the 46th Legislature, Regular Session, 1939, provides the method of compensating examiners of this State who conductexaminations of insurance companiesnot organizedunder the laws of Texas. That Act provides in part ns follows:

"Examiners' remunerationand expenses shall be the same as that whichwould be paid by the home State of a companyunder examination to persons conducting the examinationof a Texas company admitted to do business inthat State." This provisionhas been fully discussed in our Conference OpinionNo. 3075, dated August 3, 1939 with which you are familiar. The questionwas likewise inci.denMly involved in our Opinion NO. O-1471, addressed tothe Honorable Walter C. Wooaward, Chairman, Board of Insurance Ccuumissioners, under date of October 14, 1939,with which you are likewise familiar.

Your question,however, does not involve the method of computing the canpensationor the availability of an Qpropriation for thepurpose of paying the compensation of examiners conducting examinations of insurance companiesnot organizedunder the laws of the State of Texas; but your inquiry seems~

to be concernedwith thepropositionwhether the Actuary of the Edamining Division assisting in the examination of an out-of-state insurance companymay be compensated as an examiner, rather then as Actuary, for such period of time as he may actually engage in such out-of-stateexemination.
Your question, it seems, is explicitly answered by the below-quoted provisions appearing in Senate Bill 397:

Where the Chairman of the Board shalldeem it advisable.,

he may commission the Actuary of the Board, the ChiefExaminer or any other examiner (r employee of the department,or any otherperson, to conduct or assist in the examination of any oompany not organizedunder the laws of Texas and allow them compensationas hereinprovided, except .that they may'not be otherwise compensated during the time they are assigned to such foreign company ex&- ination.*
It follows that during the timeXr. Van Fleet, the Actuary of theExamining Division, was by commissionHon. George I?. Sheppard, Page 3

of the Chairman of the Board assisting in the exam&nttion of the out-of-state insurance company referred to, he %Q~S permitted to be calpensntedfor such services in the manner provided in Senate Bill 397. Of course, for the eight days he served.as, in effect,Examiner, he could not, under the provisions of Senate Bill 397, be compensated as "Actuary";but we do not feel that the inadvertentpayroll certificationwhich reported him a? serving as Actuary during the entiremonth of Octoberwill or shouldprevent the account of your Department from being corrected to show that for eight days of suchmonth he actually served as "Examiner,"under the provisions of Senate Bill 397, nor does it, in our opinion,prevent the adjustment of his compensation according to the actual fact situation.

Trusting that the foregoingadequatelyanswers your inquiry,we are
Very trulyyours ATTORNrEY

GENERAL OF TZXAS

BY R. W. Fairchild

Assistant

A?PRCVED DEC '7,1939 /s/ Gerald C~.

Mann ATTGRBBY GENERU OF TEXAS