OFFICE OF THE ATTORNEY 

AUSTIN 

GENERAL OF TEXAS 

:Snmablo ii. I.. Thoarr, iQ+esident 

iio.xd cf tiegent 

Atdts Teachers ,colleger of ToFoxAllao, Taxar 

2ear .iirr 

Tour letter of J 

0rri00, roads 08 r0uons: 

slon to oLeok into this &roup pollay 

ooqlainte registered by tbs. prodour c0114g0a. Dr. Zircn iii. hhitloy, 

t Toxos &at0 Texherr College at 

not Batisf~led with the favorsblo~raport 

ag one or his bollerr and hlred e pluntber 

who diooorersd that the boiler In questloa was la e rather preoarious condition. Dr. il. x. 

Xoreloclc, ?residmt of Al KOUJ 5tst.e Teaobers’ Collqa 

at blplno, sent me a CO?J of a letter Monday which 380 

realed thet 3!~insgeotlon scrvica had not been a&tQS@Elt!ler 

eatkiiaatorg. 
*You zay be Interested to loclrn that tb4 

Cezieral Inauranco C0ai,iany of ,:zarica has subsltted 

a 3rosd 9ors polIc7 at 8. sao,ller rrte than we are 

now ohrlxgad by the %rtford Coa?an7, even though 

this latter Coa?ahy IS 1I:iited In Its proteCtIon, 

aud in a great .no~y instacces, .Lheir deductibles 

would xuke It Is~osslblo for us to zvoover losses 

razglng under ~l,OOO.GG In some oases and uober 

3500.00 In many othora. 

‘This matter wasdlsouased wlth Judge Zeaver H. 

3akor on sy reoeht trig to Austin, and his letter received today, states that his Uepsrt.r.tat*s appraIsa1 

of the General Insurmc4 Coa?aoy oi Aerloa Indioates 

the cosgauy le solvent and reliable .~ In f Ict, Is one 

-t the outstanding oom~anios In our tuition. 

*Judge &ker suggested thnt before treriatarrlng 

this Insuranoo to the General Iosurauoe Company OS 

&erioa, that I ‘ascertsta whether or not tha BoarU 

of Alegents has the authority to pay the prasluu!. 

This question was Introduced due to Locate Cococrrent 

iiesolutlon No. 3, kots of the 31th ;eglslsture, Ssooad 

Called &ssIon, Whlqh 1~ 4ifeot, prohlblts the purohise 

or fire inwroaoo upon buIldIuge and contants belongIsg to the Xste aud Its ~rarlous InstltutIons, exoa?t 

the Unlvereltg of Texas aad Its braaohos. 

*Bowever, Zud&e Sellers, this policy 1s temcd 

‘3oIler 5xplosIon and i:ersonsl LIabIlIty Inaurauce* 

rather than rlre Insurance protection on our buildings, 

aad since the policy was issued February 13, 1943, Sor 

a serlod or threo years acd preslun payuents hare elready been made, It seem?. tirrt it would be parziIssIbl4 

ror the 3o.zd to have the above polloy oauoelled, uuearned promims retusded, and 91&a the >roteotlon wlth 

ths General lnsuranoe Co!npaBy of knerloa. 

4”Zhe preniuns 011 the hrtford Steam BoIl4r policies 

for limited coverage for a three ytnr terzn are trl.,SSS.SO, 

whllo the Bread Fona policy subaiitted by the General Inmrai?c4 Company of Anerioa mounts to $1,555.00, whioh, 

as you will observe, gives us greater proteotlon for a 

s.miler 9resIusi. 
-. 

120 

iIoaorJble ii. L. I'hom.s,, k:ee 3 

"It la zuy reaomendatlon, since the present 

protection is ln3d.equat.e at euch a hi& rate and 

nenlce hei not been satisfactory, thnt thlu buslnee8 be transterred to the General insurance Cornpany oi .&aerica, and I would like to asaertaln lf 

there 1s any r&awn why thi8 azy not be done.” 

The first matter taatthl8 departmit m8t deter.ol?le 

ln order to anmer your quhtlon 18 whather the said Te-1ahers 

i;ollege8 hive the authority in the ilrrt place to take out and 

hold suoh lneuranoe polioler on their hollers. 

In Opinion No. O-1100 issued from this de?art?ent in 

1939 to 0. pu, Stake8, Cashier, Tera8 Prison System, it wa8 held, 

mng other things, a8 follow8: 

WTh18 otiloe on February 14, 1939, in Opinlqn 

No. O-201, held that the State 3okerd of %althwas 

unautharlzed to h8UrO iitat.0~ property ln it8 po88e8- 

-8lon~agnln8t 1088 by fire unlees a 8peOifiO approi 

prlatlon hsd been aade for that parpose.- Thl8 opl,nlon 

wa8 hottoaed upon the projxmltlon thst the Le&lslgture 

bud ln demte~conourrent Resolntlon Xo. 3, passed at 

the sqoond oelled cession of the 37th i4gidlature, de- 

'olrred lt to *be the rlied policy oi this atate to 

carry it8 o%n lmiir?nce upon pub110 buildhI& and eoateht8, and that no lnauriurce pollcleo shall be taken 

Out upon any Of the pub110 bulldln.~ and Content8 

thereof l * ** Oplnlon No. O-842, dated lda: 25;1939, 

hold8 that the Comnl8elonor'of Agriculture ha8 no authority, in the absence oi a 8pSCiriO appropriation for 

8uoh pWpo8e, to pay the preeium on a fire or casualty 

in8UranOe polloy 188Ued on oertaln liv88toOk owned by 

the Aate. An atallrrble lrpeoltlo approprletlonto pay 

the'premiua on any kind .or a polloy isoubd in favor. 

Of the State uould araoant to a Irubrequent deoleratlon 

of p01log by the Leglrlature end would, to thst extent, 

repeal the plfog announoed by the l98OiUtiOn above 

referred to.* 
Eonoroblo fl. L. Thomas, P%e 4 

In Oplnloa Xo; O-l81 lroaod Ey tbir d0pUtmat ha 

1939 to thi Honorable Oeo. H. Sheppard, Coovtroller of Publio 

ioOoUnt8, it Wa8 held thntt, 

. . 

We are not herelzk deolarlng the purpose8 for 

whloh a departamnt mny expend lta ooatlngeat ttUId8, 

but in the amtter 0r inrunmo rlaoe the polloy 0r 

the State ha8 b eel n xpreoeed bf th0 &gi8latwO, we 

do hold that in the abaeace ot'e rp0oltlo l pproprlatlon for tbat purpo8e, you ue not aathorlsed to 

i88ue *arrange ror the p4fsbat af inrurano* prehlaa8.* 

In Oplnlon MO; O-3000 to the Eonocable II.- A. Tu&er , 

deoretary, Board 0r hgsnt8, State ~‘te.zio~m Collegrr, of datr 

~r8brI&rl 6, 1941; 8 OO?y Of 8&I- b&g rtt8ab6 hf?Pm, it Wa8 . 

held: 

*Thlr drpsrtiwmt ha8 repeatebl~ ma that no 

iamranoe polloler rhall be taken oat upon an7 ot 

the pub110 4a11dlo~ Oi f&l8 State, uor upon the 

.oontsntr tharrof. Tk r8mon for thlr holdlo& 18 

etated .ln our OplnlomBo. O-164 ad 0401, ooplrr 

or rhloh are l nolo8ea tar four lnforme~lon~ thsmrare, you are advl8ed that the preafum ror rlre 

lnouranoe, or boller lnouranoe oanaot '%e pa out 

of the loos1 oollege rund or aol other fUd# mm 

the oolleger.* 

. 

Upon Oereiui ln8peotlon~olC the approprlatlon bill in 

regard to raoh eolkger a8 named hereln for,the ye&k beginning 

Septeder 1, 190 aud ending aogo8t 31,. 1946, 41 oontslned la 

the Oeaeral and Bpeoial Law? Of Texao, hot8 o? the 48th Leglr- . 

l&we, Regulkr Samloa,‘we find oo rpeolflo~ approgrlatlon tar 

the porpoee of pay1n.g holler lnauranee premiaw or perroaal 

llablllty lanruranoe promlaa8. Therrrore thlr department mist 

agala hold that a0 ruoh ia8urmOe poileje8 rhall be takea out 

by the Tersr Stetr Teaobr8 College8 ln qaentlon. 
i 

Wo will not here 60 into the sabJeot'a8 to what 

aotual beueiitr 8uoh'oollegor of the State would derive irom 

8uoh polloler, ii ailowed to hold 9a,sm, a8 we do not hare the 

laouraaoe polloles in Que8tloa berore u8 iOr Iarpeotloa. ROWever, we rlU rd8r yoa, ror jour owls lnformdlon, a8 to tho 

worth of 8aaa to Oplalon Ho. O-llO0, part8 oi rhlch l e q uo ted 

herelrkbovo,, and. to a sopp1eAeo.t to #aid oplnlo~, eople8 id 

uhloh a r eí l ttaohd hereto. 

I& .tleu oi our tulin6 hereindove, it 18 obvloar 

thi+..aOt ha?&5 &+Or$t~ t0 take oht. and hold the. flirt polIor 

$I% qUb8tiO@4 8&d OOu8gl8 r Oa lU(Ot L h r vl o tithorlt~ t0 Oh8060 

to l notheP~pol10~ of. 9 dlrruont OOLI@BQ~ inmrIa& the 8%~ 

rubjoct matter. 

. 

Sn. @grd .to JOU~ troublba ia obt9Inlng proper into ouz Oplaloo llo. O-&O, la uhlo attention li, oalle6 to tho 

.pbOtiOXl Of the bOilW8 ti SdOr'fM l6aio t0 the 8Uppl8SlOnt 

raot that the’tabes Comml8916ner ot Terar'lr ohnrged ylth the 

rO8J?Ontibfiitt Of haVla6 all bOilqr8 ti TOX&8 Uqaootod at 

oortala bh88 or intorvel8, 8nd l w8 know or ao.roaron r4 that, 

Uep’ertaent 8hoUld not. properly ino sot t&o Stato boilrr8 in the 

8am aanner that bolleN0r all pr f rata lndlrlducr38 are b8peoteb." &ad do to Opinion No. O-3000, ,a whloh it V88 

hold %ith reioz%nOi to ..eo8t8 inoldent to $ha irr#prOtlOn of 

boll8r8, it 19 OUT opinion that the 8aae aay b.ji?dd by the 

yarlour OOU0608.- 

Ia Opinion Yo. O=ll5+, a sopr or mm& being i&xohed 

heroto, it VI89 hold, in regud TV th0 TeI98 Ptil8Oa SJ'8tem, that 

th0 itea 0r expenro lnourred la tha l mp 

Y 

ma t or l uthorlzed 

pw8on8 to. lnrpoot the bollere of tha 878 em my be paid out of 

tho genarel au port end malntatinoo or aontlngant l x ~p mro item 

0r the rpptipr f etloa. We 8oe ao realon jfhy this 8houLd riot 

apply ln mgati.to the TtihU8 Ooll0g09.1~ qlbi8tloa. 

xn r:Cgrrd to. your iotter of Fohruat7 3, 1944, &I& whloh 

you inquire farther in thl8 *tter a8 iollow8r 

-Ir moo flad that we UO not have tlw aubborlty 

to Q&Y ror th~lr premiaa, I 8s roadaria& if wo oaa 

otnoel the exlstin pal10 9nd reOoler'on"a 8horttern PatO ba8i8. #hlr pofloy will huglo ~beon in 

ror& ono year Pebyt 8th and war purohamd on a 

three year bi3810.. * 
. . 

Honor~ble~R. L. ThorPar, prge'd 

.YO will &v8 te quote you the general~miler of law l pp1faable 

to 8uoh polloio~ and, to al6 your detsrulnatfan of thlr problca,- 

give qur opinion nsaorrtifly oirowarlkd br our ‘&ok of pertlneot faots. 

ln Volume g4, Totar Jurlrprudonoe, on page 749, it 

18 aaid thatz 

: 

*Property and llqbility inruranoe goliole8 

urually oootaln provirionr rolatlng to their reiolrrioti or aaaarUatlon by ,ofthdr party, dqmadot&~ upon arrtala oonilitionh" 

on page 951 or raid Volurru B1 'Pbs, Jar.,. It ray88 

-A8 a gearral rule, a poll07 of inrurapoo . 

say Ia ornorllad by'mutaal agreooent.of the partier, ln6agrnWntly or the teras.or tb aontraat, 

and notrlthrtanding a rtandard poliay provl8ioa 

for eaaae1latlon rttsr aotioa, although ,to have 

thi8 l tieot the rind8 ot the part188 mast have 

mot on oanaiUatlo.oa.~ 

. . 

ias 8& no tiason kiy, ,pllder eomi or the provlrionr 

oi thr next above ret out rUlO6 01 &au, fou uoald not be allowed to canoe1 th8 poliaf or poliolep~and rcoavrsr any l uah 

part or the premium aa 18 unmrnad. . 

~Boplig tilr full; adviser you a8 to all yoirr quertlons oa this ~rub#aaf,’ we are 

Tours vorr truly 

A88lrtant