### THEA-~-~RNJ~Y GENERAL
OFTEXAS

HonombleKarvfnHall Catmissioner, Fire I~urance Division Auatln, Texss
Dear Sir: Attention: Mr. Qfrard KWeg, Supervisor, Age&a Lfcenasa. Opinion Bo. O-2565 Rer Should the ImaranceDeparimid of Texas charge BmiHampshire Cmlpaniee a fee of $2. for all soliciting agenta operating out of 

### recording agencies whfah have been appointed by said NewHmpshire ccmpanies?
Your recent requeet for m opinion of thla Department, by letter dated July 31, in which you submitted the above question, Is predicated upon the f011owfng fnfozmation taken thereframt

*Aeoording to information which Theaofffee has been able to obtain frm the @cximfasioner of Immranee of NewHampshdrs, it wouhi appear that for allworking purposes, the NewHamshepe system is 'fdentfealwith that of Kansas and that the z-&l& furnhhed ua by your Department relative to the Km&a matter would a.Uo apply to eompsrnfesdomiefled in HewHampshire.: The outstanding difference in the proceQurc followtd 118

### these two state8 ia Me faot t&t in Kansas, a fee is charged for each imifvfdualj wherese, in HewHampshire, a fee fs charged for the ffrm m a whole; however, from nmerom atatamntamade by the Camnfesfoner of Inmaranbe of RevHampshire, it would appear that cad sub-agent workfng for an agency must have a sepsrate license f"orwhich a $2.00 fee fa charged each eompmy he represents. St ia 0~3"belief that the,esntroversy arises out of the fad that the ageney system of Texas differs 80 greatly from that of New Hmp8hire.
%an all availablla data, it appears that the iGwHampshfre sgatem is W&is Before an indfvfaualmay eolicft or write bueiness, a lieems mast be obtained for him from theIbvHampshire Xnmranoe Departient ba the inmzmxe company. A fei? of $2.00 fs charged for this Picenae. In an agency In which more than one person ccmpr~es the ffrm and Snwhich nmerous sub-agentsHonorable Marvin Hall, Page 2 (O-2585)

are “.pl.oyed, the aaae type of license Is held by the firm and eaoh sub-agent. The same fee ie charged, and the agents ownot produo bwinese for any ocmpanyfor whioh t&y have not been properly lloenaetl. In Texas, on 

### theother hand, a reoording ageaoy irrappointed for variouf~ ocmpauler. The a@tIOY in tUrn, appointtl VWi0u6 EmlioitoX’a, ad rlnoe Texan law rrwirrr curly one of the oompaaler in the agenoy’r offioe to join in ‘#IOappolntamt, It lo quite probable that moot of the oomp~fe~ reprerented by the reoording agenoy have no lamfledge of the mnuber

### or Identity of 

### thesolloltorfa working out 

### of their agenoy’s offioej however, any one of I&I solioitom lioeneed to repPesent the recording agency haa authority to produce business whioh may be placed by the agenoy with any of the ompmfes for which it ia lioenatd.
*Our oontentlm in the premirea Is this: that In-oh ama Texrs oanpany lmustpay $2.00 to the DepartPent of Inanrance of llewHampshire for every agenoy and sub-agent hold- 

### autbority’in the State of NewHapehire to produce business for eald Texao oc@any, this Department mu&, in order to properly etioroe the Retaliatory Law,Art. 4758, exact a simmilarfee again& a HewHampshire sompanydofng business in Texas for all agencies ana solicitors holding authority fn thfs state to prodlice buaineaa faathis state for said NewHanpshfre company. For the purpose of applying thie law, it weuld aseem to ua *at a solfcftor In Texas is t&e came a a eubagent i~lew Hampshire.* Aoeepting the infolmatfpn above quoted from your letter ao correct, that eaoh sub-agent working for a HewHampshfre agenoy is aaaaessed a $2. lieenaa fee charged for each sompanyhe repTeeent8, wdsee no reason whyyour a&ion in applyfng the retaliatory ssaessment on the numberof solfoftora in Texas representing the NewHampshire ccapmy andworking out of fte Texas reaordfng agency, is not proper. For the purpose of applying the retaliatory law, there is nomaterial diatinotion b&seen a sub-agent in NewHampshire and a aolfcitor in Texas. Andtither, the faot that the agent’s U@?JXWJ fee is charged for the agency andnot each individual ccmpoaing the agency does not concern the questian here, involving *solicitors* or “sub-agents” working out of and produoing business through such agenotes. The feeuence of licenses in this respect by the Commission of Insurance in the State of BewHampshire is similar to those issued In Texas0 Section 3, Article 5062a, Vernon’s C~ivil Statutes of Texas, prevfdea in part ae followar

*D0 0The board is authorized to issue licenses to fixma or to individuala engagbg M partiers in the insurance busfsess provided the in-e8 of all peraone interoated in auch firm are nuned fi the lfcenae, and providea, further, that all lioenaed agents must be residents 

### of Texafi

. . . .*

-iHonorable MuMn Hall, Page 3 (O-2585)

Seotion 2, Article 5062a, Vernon"s Civil Statutes, defines the term *solloitor" (LBfollowsi

*Bythe term p6011pitor~ is meant a pemion off4olng with, end sd in, rolioitlng lnmrmos on behalf of a Iaoal Reoordlng &ant, whodoer not rQn ard exeoute policies of inmranot, andwhodoes not maintalxn ocmpanyreoords of such tranMc.t1ons. e e e*
1twfl.l be noted that Section 1 of safd stat&e epeeffioalQ ela.seif%es "aolicftors' a~ "insurance agenta.* While the above quoted Section 2 of the Act lfmfta the autiorfty 0:Psolfoftors in somerespects, their acts in eolfeftfng cmprodunzing Insurance business, au& as befng 

### %a~m0a withapplication 'ble4nk5,proourfug s%(plaii;uresto same, oolleotlng and transmitting premkx@ and deifvering policies &ndreceipts are those generally engaged in by Weub-agenta, * "speefal' agenta, OPby whatever n&me they maybe called.

In ~on~lu~fon, we think our opfnfon O-1997 applicable to the question here presented and it 1s o-tarfurther opinion that your departamnt is authorized to ffih~pgeNewHaxkpshtis eamparnieaa fee of $2. for all eolfoftfng agents ha9ding adharity to solfaft business for said foreign eaupanfes and operating cmt or Texas recording argenefas whfeh have been appointed by said BearHanip~hfreecmpanies.
Yours very trdy
A'PB3YGEIiERALOFTEXAS

B,?/a/ Wm.Jo B, King Wm.JT,R. King Assfatant

APPROVEDAlJG21, 1940
/8/ Grayer Sellera
FIRSTASSISTANT

ATPOFUDX

GENERAL

WRKa~-ds AFPROVED OPIIBIOM col4lmTzE BY/8/ Rg&g. c-