October 25, 1962 

Mr. William A. Harrison 

Commi~sionar of Insurance 

State Board of Insurance 

Austin, Texas 

Opinion No. WW-1457 

Re: Whether the adoption of (1) a 

standard, textbook on propertycasualty insurance or (2) a 

standard textbook with revisions 

on the subject of propertycasualty inclurance will satisfy 

Section 7 of Article 21. 14 of 

the Insurance Code and related 

Dear Sir: queetion. 

You have requested the opinion of thie office whether or not 

the adoption by the State Board of Insurance of (1) a standard textbook 

on property-casualty insurance of (2) a standard textbook on the subject 

of property-casualty inaurancc with certain revisions made by the 

State Board of Insurance would satisfy Section 7 of Article 21. 14 of 

the Insurance Code which refers to a “manual of queatione and anewers 

published under the direction of the Board of Insurance Commissioners. ” 

Secondly, you asked whether or not the State Board of Insurance would 

be authorized by Section 7 of Article 21.14 to charge a fee representing 

the cost of such a textbook from persons interested in preparing themselves for the agent’8 examination. 

In the past the State Board of Insurance haa published an 

inexpensive mimeographed manual of questions and answer8 in compliance with Section 7 of Article 21. 14, and dirtribution of thir manual 

har been made without charge. However, the Board feelr that the 

prerent manual does not contain all of the information necessary for 

the applicant for an agentr license and contemplator rome extensive 

changer. 

In answer to the first que.stion it is the opinion of thir office 

that the State Board of Inrurance may either adopt (1) rome standard 

textbook on the rubject of property-carualty inrurance, that contain8 

querrtionr and anawerr ar provided in Section 7 of Article 21.14, or 

(2) the State Board of Insurance may adopt a standard textbook on 

property-casualty insurance with revision8 by the State Board of 
. . 

Mr. William A. Harrison, page 2 (WW-1457) 

Insurance made in its text which contains such questions and answers. 

The only requirement of Section 7 of Article 21. 14 in this respect is 

that the manual, or whatever the type of publication, be published 

under the direction of the State Board of Insurance. The type of manual 

or book to be published under the direction of the State Board of 

Insurance is apparently left to the discretion of the State Board of 

Insurance. There is no requirement that the manual or book be entirely 

prepared or prepared in part by the State Board of Insurance or its 

employees. 

In answer to the second question, it is the opinion of this 

office that the ‘State Board of Insurance may not charge a fee which 

represents the cost of each manual or book. Section 7 of Article 21. 14 

does not authorize the charging of such afee, and such authority is 

not generally implied. See WW-1285. Section 7 of Article 21. 14 does 

not require that the State Board of Insurance make a gift of the said 

manual to the prospective examinees but only requires that it shall 

be made available for the use of the prospective persons to prepare 

for the examination. Availability of these manuals or books on a loan 

basis to the prospective examinees would be an adequate compliance 

with Section 7 of Article 21. 14 by the State Board of Insurance. 

SUMMARY 

To comply with Section 7 of Article 21. 14 of the Texas 

Insurance Code, the State Board of Insurance may either (1) adopt 

some standard textbook on the subject of property-casualty insurance 

that contains questions and answers as provided in Section 7 of Article 

21. 14, or (2) adopt a standard textbook on property-casualty insurance 

with revisions in the text and questions and answers made by the State 

Board of Insurance. The State Board of Insurance may not charge a 

fee for this publication. 

Very truly yours, 

WILL WILSON 

Attorney General of Texas 
Mr. William A. Harrison, page 3 (WW-1457) 

By: BOB E. SHANNON 

Assistant Attorney General 

BES: ms 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

Robert Lewis 

Frank Booth 

Fred Ward 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Leonard Passmore