c . 

THE,QITORNEY GENERAL 

OF TEXAS 

Board of Insurance Commissioners 

Austin, Texas 

Gentlemen: Attention of Mr. H. E. Wassell 

Opinion No. 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 stated question has been received by this department. 

Section 23 of Senate Bill No. 135, Acts of the 46th 

Legislature reads as follows: 

"Section 23. Burial Association. 

"Any individual, individuals, firms, copartnership, corporations or associations doing the'business of providing burial or funeral 

benefits,~ which under any circumstances may 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 organize under 

provisions of Chapter 274, Acts of the Fortgfirst Legislature, 1929, and amendments thereto; and shall operate under and be governed ~by 

Chapter 274, Acts of the Forty-first Legislature,1929, and amendments thereto, and this 

Act. It shall be 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 funeral benefits, which under any circumstances may 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 specifically provldes that 

Burial Associations shall organize under the provisions of 

Chapter 274, Acts of the 4lst Legislature 1929, and amendments thereto; and shall operate under and be governed by 

Chapter 274, Acts of the 41st Legislature, 1929, and amend; 

ments thereto, and Senate Bill No. 135, as passed by the 46th 

Legislature. 

Section 29 of said Chapter 274 reads as follows: 

"The provisions of this Act shall not apply 

to labor unions, domestic orders or associations 

which do not provide a death benefit of more 

than one hundred and fifty ($150.00) dollars, nor 

to the associations which are now described In 

Article'4857 Revised Statutes 1925 nor any society 

or association If any, heretofore legally operating state-wide on an assessment basis under any 

charter heretofore granted under any valid statute 

of this State.” 

Section 21 of Senate Bill No. 135, Acts/of the 46th Legislature, speclficallg repeals Section 29 'of said Chapter 274 

and reads as follows: 

"That Section 29, Chapter-274; Acts of the 

Forty-first Legislature, 192, (Page 563), be 

and~ the same Is hereby repealed, insofar as 

same is In conflict with the provisions hereof relative to burial associations." 

Artic~le 5056, Revised Civil Statutes and Article 568 of 

the Penal Code specifically definB Insurance agents. 

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

"Hereafter when any person shall.desire 

to become an agent for a life insurance compaw, 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 statewide mutual association, soliciting or 

writing insurance in the state of Texas, as the 

term agent is elsewhere defined 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 such 
Board 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 local mtual aid association, statewide mutual association, or any other company, 

association or organization therein named, soliciting or 

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.Chapter 247, and amendments thereto, 

and Senate Bill No. 135; Acts of the 46th Legislature. Therefore, it is apparent that it was intended by the Legislature 

that agents of Burial Associations should be 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/Ardell Williams 

Ardell Williams 

AW:AW:wc 

APPROVED OCT 2, 1939 

s/Gerald C..MAnn 

ATTORNEY GENERAL OF TEXAS 

Approved Opinion Committee By s/BWS Chairman