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THE,QITORNEY GENERAL OF TEXAS

Board of Insurance Commissioners Austin, Texas Gentlemen: Attention of Mr. H. E. Wassell OpinionNo. O-1443 Re: mst agents of burlal.associatlons under Senate Bill 135, Acts of the 46th Legislature,procure licenses?
Your request for our opinion on the above statedquestion has been received by this department.

Section 23 of Senate Bill No. 135,Acts of the 46th Legislature reads as follows:

"Section23. Burial Association. "Any individual, individuals,firms, copartnership, corporations or associationsdoing the'business of providingburial or funeral benefits,~

which under any circumstancesmay be payable partly or wholly in merchandise or servic.es,

not in excess of One Hundred and Fifty ($150. 00)Dollars, or the value thereof, are hereby declared to-be burial companies,associations or societies,and shall organizeunder provisions of Chapter 274,Acts of the Fortgfirst Legislature, 1929, and amendments thereto; and shall operateunder and be governed~by Chapter 274, Acts of the Forty-first Legislature,1929, and amendments thereto, and this Act. It shallbe unlawful for any individual, Individuals, firms, co-partnerships, corporations; or associations, other than those defined above, to engage in the business of providing burial or funeralbenefits,which under any circumstancesmay be paid wholly or partly in merchandise or services.' Chapter 274,Acts of the 41st Legislature, 1929, comprises Articles 4875a-1 to 4875-31, iriculslve, Vernon's Statutes, and applies to local mtual aid associations.

Senate Bill No. 135,Acts of the 46th Legislature, refer-c -

Board of Insurance Commissioners,Page 2 o-1443

ferring to Burial Association specificallyprovldes that Burial Associations shall organizeunder the provisions of Chapter 274, Acts of the 4lst Legislature 1929, and amendments thereto; and shall operateunder and be governed by Chapter 274, Acts of the 41st Legislature, 1929, and amend; ments thereto, and Senate Bill No. 135, as passedby the 46th Legislature.

Section 29 of said Chapter 274 reads as follows: "Theprovisions of this Act shall not apply to laborunions, domestic orders or associations which do not provide a death benefit of more than one hundred and fifty ($150.00)dollars, nor to the associationswhich are now described In Article'4857Revised Statutes 1925 nor any society or association If any, heretofore legally operating state-wide on an assessmentbasisunder any charter heretoforegrantedunder any valid statute of this State.” Section 21 of Senate Bill No. 135,Acts/of the 46th Legislature, speclficallgrepeals Section 29 'ofsaid Chapter 274 and reads as follows:

"ThatSection 29, Chapter-274;Acts of the Forty-first Legislature, 192, (Page563), be and~the same Is hereby repealed, insofar as same is In conflictwith the provisionshereof relative to burial associations." Artic~le5056, Revised Civil Statutes and Article 568 of the Penal Code specificallydefinB Insuranceagents.

Section 1 of Article 5068b as amendedby the 44th Leglslature, 1935, reads as follows:

"Hereafterwhen any person shall.desire to become an agent for a life insurancecompaw, accident insurance company, life and accident, health and accident;or life, health and accident insurance company, or association, or organization, local mutual aid association, or statewidemutual association, soliciting or writing insurance in the state of Texas, as the term agent is elsewheredefined in the law, he shall In such form and giving such Information as may be required, make application to the Board of Insurance Commissioners for a license to~act as such agent. After the Board of Insurance Commissioners shall determine that suchBoard of Insurance Commissioners,page 3 o-1443

person is of good character and reputation, it shall Issue the license to such person in such form as it may prepare.' Under Section 1 of Article 5068b, supra,any person who desires to become an agent for a localmtual aid association, statewidemutual association, or any other company, association or organizationthereinnamed, solicitingor writing 'nsurance in this State, as the term agent is defined by~law **is** required to make application to the Board of Insurance Commissioners for a license to act as such agent; after the Board determines that the applicant is entitled to such license, the Board shall Issue the license to such person. And,~as above stated,Burial Associations are.required' to organlze-'under

the provisions of Chapter 247; Acts of the 4ls.t Legislature and amendments thereto,,and shall operate under. and be governed by said.Chapter247, and amendments thereto, and Senate Bill No. 135;Acts of the 46th Legislature. Therefore, it is apparent that it was intendedby the Legislature that agents of Burial Associations shouldbe licensed.

Therefore,

)In view of the foregoing authorities,you are respectfully advised that It is the opinion of this department that agents.of Burial Associations are required to procure licenses.

Trusting that the foregoing fully answers your inquiry, we are Very truly yours ATTORNEY GENERAL OF TRXAS

By s/ArdellWilliams ArdellWilliams
AW:AW:wc

APPROVED OCT 2, 1939 s/Gerald C..MAnn ATTORNEY GENERAL OF TEXAS Approved Opinion CommitteeBy s/BWS Chairman