The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1912-07-11
Insurance Notes of w. C
Taylor, Ins. Com. N. D.

Much misunderstanding and mis-
information is current regarding the
statutory provisions in IL law re-
lating to agents licenses. In one
quarter the impression prevails that
officers of a domestic insurance com
pany may solicit applications for in
surance and issue policies by mere
virtue of their official relations with
such company.
This is not true. No special privil-
eye or exemption doth hedge about
the officers of insurance companies.
II 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 s~olicits in
uranc on behalf Of any insurance
corporation or person desiring in
surance of any kind, or transmits an
application for IL policy Of insurance,
other than for himself, TO or from any
II corporation, OK who makes n
contract for insurance, or collects
any premium for Insurance, or in n
manner aids or assists in doing either.
o. ~transacting any business of like
nature for any insurance corporation,
Or advertising to do such thing. shall
he held to be an agent OF such corpora
tlon to all intents and purposes. -
And agents must have licenses. In
This connection an opi,llrn recently
rendered by the A%ttorne, Generals
departn g 1T is submitted:
Hon. W. G. Taylor, Commissioners of
insurance, Bismarck, N. d.
Bismarck, June S, 1912.
Dear Sir: You have asked if an
officer OF an insurance corporation
may solicit insurance in behalf of the
company Of which he is an officer
without an agents license.
1t seems to me that the language of
Section 45O9. Revised Codes of 1905.
clearly indicates that every officer.
broker, agent, or sub-agent, of any
Insurance corporation Of n kind.
except county mutual insurance cor
poratlOns of this state, must procure
a certificate of authority from the
commissioner of insurance before he
can act or aid in any manner in tran
sacting the business of such
tlon in placing risks or ~effecting in
surance therein.
therefore believe it is as necessary
for an officer to hold an agents
license if he intends to solicit insur-
ance for his corporation as for an
employed agent of the company to
have such license.
Yours very truly,
(Signed) G. L. Young, Asst. Atty. Gen
The above opinion bears heavily
upon another phase of the matter.
MI oAASoi " a. pduh, loG us say, re-
ceives authority to act as agent for a
company writing fire insurance or
hail insurance or both. The license
is then treated as if it blanketed every
one connected with the bank, whereas.
it confers authority exclusively upon
the individual to whom it is issued.
n agent cannot delegate authority
to others to represent him. Section
1909 provides that no agent or sub
agent Of any insurance corporation of
any kind, except county mutuals, shall
act or aid in any manner in transact
ing the business of or with such cor
poration, in placing risks or affecting
insurance therein, without first pro-
curing from the Commissioner of In
surance a certificate Of authority as
provided by law.
These requirements may seem harsh
and unreasonable, but they are neces-
sary ii the integrity Of this great
enterprise the insurance business
is to be maintained.