The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-07-10
AGENTS LICENSE
Law EXPLAINED
There is Much Misinforma-
ton Regarding Same
Says Taylor.

Bismarck, July 10.-1nsurance Com
missioner Taylor in a bulletin just is
sued says:
Much misunderstanding and misin-
formation is current regarding the
statutory provisions in our law relat-
ing to agents licenses. In one quar-
ter t ehimpression prevails that off,
GERS OF q domestic insurance company
may solicit applications for insurance
and issue policies by mere virtue OF
pany.
This is not true. No special privi-
lege or exemption doth hedge about
the officers Of insurance companies. In
their official capacity their duties are
administrative or clerical, as the case
may be; but soliciting insurance and
issuing policies is an entirely different
function. over which the state very
properly has supervision. Section
45OS. revised codes Of 1905, provides
that whoever solicits insurance on
behalf OF any insurance corporation or
person desiring insurance of any kind,
or transmits an application for a pol
ICY. to or from any such corporation,
or who makes any contract for insur-
ance. or collects n premium for in
surance, or In any manner aids or as
sists in doing either, or t~ransactins
any business Of like nature for any
insurance corporation. or advertising
to do such thing. shall be held to be
an aegnt of such corporation to all
intents and purposes" And agents
u have licenses. In this connec-
ton an opinion recently rendered by
the attorney generals department is
submitted:
Bismarck, June s. 1912. Hon. w. c.
Taylor. Commissioner Of Insurance,
Bismarck. NJ. D.-Dear Sir: You
have asked If an officer Of an in
surance corporation may solicit insur-
ance In behalf of the company OF
which he is an Officer without an
agents license.
of section 45O9. revised codes Of 1905.
clearly Indicates hat every officer,
broker. agent. or sub-agent, of any
KIND, except county mutual insurance
corporations of this state, must pro-
cure a certificate Of authority from
the commissioner of insurance before
ne can act or aid in any manner in
transacting the business of such cor
poratfon in placing risks or effecting
insurance therein.
1 therefore believe 1t Is as necessary
Tor an officer to hold an agents IL
sence II he intends to solicit insurance
Tor MS corporation as for an employed
agent OF n company to have such
license. Yours very truly,
&C. L. Young.
Assisting Attorney General.
The above opinion bears heavily M
on another phase of the matter. An
oficer Of a bank, let us say. receives
authority to act as agent for a COM
pany writing fire insurance or hail in
surance or both. The license is then
treated as If 1t blanketed everyone
connected with the bank, whereas. II
confrs authority exclusively upon the
individual to whom it is issued, The
agent cannot delegate authority to
others to represent him. Section 4509
provides that no agent or sub-aeent
OF any insurance corporation of any
kind. except county mutuals, shall ACT
or aid In n manner in t%ransactinr
the business of or with such cor.
poration. in placing risks or affectinp
insurance therein, without first nro.
curing from the commissioner of IN.
a certificate of authority an
provided by law. -"
These requirements may seem harsh
and unreasonable. but they are neces-
sary If the integrity of this great en-
terprise- the insurance. BUSINESS
to be maintained.