OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Hon. George H. Sheppard 

Comptroller of Public Accounts 

Austin, Texas 

Dear Sir: 

Opinion No. O-1698 

Re: Compensation of Actua 

I)epartment on examination 

By your letter of Novembe 

in the Insurance Department 

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 entire month. of October, and 

It seems that the warrant' for 

be issued in order to work an adjustment 

auned to be due Ur. 

days he served as examiner, 

Van Fleet for the eight 

and the emount actually paid him 

for the month 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 conduct examinations of insurance 

companies not organized under the laws of Texas. That Act 

provides in part ns follows: 

"Examiners' remuneration and expenses shall 

be the same as that which would be paid by the 

home State of a company under examination to persons conducting the examination of a Texas company 

admitted to do business in that State." 

This provision has been fully discussed in our 

Conference Opinion No. 3075, dated August 3, 1939 with which 

you are familiar. The question was 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 canpensation or the availability of an Qpropriation for the purpose of paying the compensation of 

examiners conducting examinations of insurance companies not 

organized under the laws of the State of Texas; but your 

inquiry seems~ to be concerned with the proposition whether 

the Actuary of the Edamining Division assisting in the examination of an out-of-state insurance company may be compensated as an examiner, rather then as Actuary, for such period of 

time as he may actually engage in such out-of-state exemination. 

Your question, it seems, is explicitly answered 

by the below-quoted provisions appearing in Senate Bill 397: 

Where the Chairman of the Board shall deem 

it advisable., he may commission the Actuary of the 

Board, the Chief Examiner or any other examiner (r 

employee of the department, or any other person, 

to conduct or assist in the examination of any oompany not organized under the laws of Texas and allow 

them compensation as herein provided, 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 time Xr. Van Fleet, 

the Actuary of the Examining Division, was by commission 
Hon. 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 calpensnted for 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 inadvertent payroll certification which reported him a? serving as Actuary 

during the entire month of October will or should prevent 

the account of your Department from being corrected to show 

that for eight days of such month 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 foregoing adequately answers 

your inquiry, we are 

Very truly yours 

ATTORNrEY GENERAL OF TZXAS 

BY 

R. W. Fairchild 

Assistant 

A?PRCVED DEC '7, 1939 

/s/ Gerald C~. Mann 

ATTGRBBY GENERU OF TEXAS