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OFFICEOFTHEATTORNEYGENERALOFTEXAS 

1 ; 

- AUSTIN 

OROVER SELLERS I_ 

ATrOINcv GLWcn*L ! 

I 

Honcrablo Ri-ynn Bell, hector 

&tar'TransportatiOu Dltlslon 

amroad c~misfiion of Texas 

'r;:~in, Tcxos 

_I 

. 

Pear Mr. Bell: Opinion So. C-0770 

A. 

49th Legislature, 

whether or n 

of said Bi1.l , which relates~ to the firnisbing of scia insuranoe pollciefi, reads as follows: 

‘0 0 0. The Commissi0n may accept fn lieu 

of t!le filing of the origdna) policies Of fnqwanOar a certificate of jnuurancc, jn such form 

as :-0~ be prcsorlbed by the Cox--isdon, which 

,~ 

certlflcate, when filed ~1 th tho COmmlssionr 

will bind the obllgor thereunder and satisfy ., 
. . 

honorable Bryan Boll - page 2 

the rcqulrements of this seotion as if the 

.I: 

:. 

originnl pollcle5 of insurance had~ boon fil0a.n 

i 

TTndndor the plain provisions of tho. above-quoted see- \ 

tion of said Act, the Railroad Commissi@n Is not rcquirod to 1 

occcpt cortificatcs in lieu of the ariglnal policy but mny.do ; 

"0. If the Commission aooopts a cortifioatc,of insursnco In , 

lfcu of the orlginsl policy, It mu& be In such form'ond con- '-' 

tain such data as the Commission requires or aomnnds. Of 

course, tho Convnlsslon oould not require ony unreasonable 

condition to be contained in 5oid oertificate. 

While your lettor does not reveal the fact, in the " 

confercncc which I had with you and representatives of ahat -: 

I undorstood to be some of the in5uraaco cOm?nnies, you wantc:! to hnon whether the Railroad Commi56ion Could require tho 

certificate to contain the provision set forth ‘In Form 8%, 

that ‘~t.he csnoellatian would not take effeot 'until thirty 

day5 after receipt of this notice by tho Commission', and 

vhethor, if tho notloe of aanoellation conta~ined 6aid clauso, 

it would necessitate ohanglng the provision in the ia6uranco 

policlee to the effeot that the company could not cancel.*-the 

policy without mailing a written notlco thereof not less than 

thirty days before the cancellation would be affective. 

It IEi our opinion that the Railroad Commission can, 

if it desires, require thirty or Moore days' actuoi notice 

. 6here it has and does accept the oertifiaate fin 3ieu of the 

orlglnal policy. 

It ii further outi opinion that t.his wouP,d not in any 

way affect the original policy of insurance; neither.~.would the 

policy of Insurance have to ootitain Guch a clau5e. 

The provision iu the polioy , as we undorst6nd 6W?J0t 

Is that it oannot he cancelled without mailing a.rioti.ce to the 

holder of the policy not less than thirty days.hefore the cancellation shall become effective. If the Railroad Commi~~lo~ 

has a certificate of insurance rathor than the. policy, under 

tho Act in ~quostion it can roquiro the company to give the Conmis5ion aotual notico not less than thirty days prior to tho 

cancel3atlon. In other words, undor tho law, the policy must 

contain 6 provision that samo Cannot be cancolled un~tll'the 

holder thereof, or the beneficiary named therofn, has boon 

maifea a notioo not less than thirty days prior to its candel1ztion. This policy, however, Is not deposited with the Rallrood Commission; If in lieu thereof It aaoepts a oertificate, . 

under the provision5 of said dot It aan require that f-t hnve 
Ilsnoligble Bryai3 Bell - p&e 3 

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. . . .> t. 

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more 

furc 

ibad 

s: 

than tho thirty days' notice spoolfled In tho policy beknwcould bo cnncellod; insofar as it affootsthe RailCommission and those for whom it acts. 

As ae construe tho Act, tho Pam or the contents of 

%he orlgwfnal lnsuranoo polloy doos not need to be changed from 

the regular standard form used, If it Is filed with the Rallrood Conimissi~,. If, liowever,. the origIna policy Is not 

fllod, then the Commission would have tho right undor the 

statuto to require the insurance company to give tho Commission full thirty days' actual notico before the polloy 

could bo canoelled. 

. Very truly yours 

BY 

Gee. V. Barcus 

Assistant 

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