The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1912-07-09
AGENTS LICENSE
Law IN N. DAKOTA
COMMISSIONER or INSURANCE
TAYLOR SAYS THERE is MUCH
INSTRUMENTATION REGARDING
INSURANCE AGENTS LICENSES
IN NORTH DAKOTA.

Insurance Commissioner Taylor in
a bulletin just issued, says:
Much Misunderstanding ami misiu-
formation is current regarding he
statutory provisions in our law relat-
ing to agents licenses. In one quar-
ter the impression prevails that olli-
GERS OF a domestic insurance company
MAJ solicit applications for insurance
and issue policies by mere virtue Of
their official relations with such COM
pany.
This is rot 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 th9 case
may be; but soliciting insurance and
issuing policies is an entireIy different
function, over which the state very
properly has supervision. Section
4508, Revised Codes of 1906, provides
that Whoever solicits insurance IN
behalf of any insurance corporation or
person desiring insurance of any kind,
or transmits an application for d policy
OF insurance, other than for himself,
To or from any such corporation, or
who makes any contract for ~isurance,
or collects any premium for insurance
or In any ann aids or assists in
OAAAA GALAASA a vi "a OAOA-
Eess of like nature for any insurance
corporation, or advertising to do such
thing, shall be held to be an agent of
such corporation to all intents md
PURPOSES And agents must have IL
censes. In this connection an opinion
recently rendered by the attorney gem
erals department Is submitted:
Bismarck, June 5, 1912. Hon. w. G..
Taylor, Commissioner Of Insurance,
Bismarck, N. D-Dear Sir: You
have asked If an officer of an in
Surance corporation may solicit in
surance in behalf Of the company of
which he is an officer without an
agents license.
It Gems to me that the language
of section 4509, revised codes of 1905,
clearly indicates that 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
he can act or aid in any In
transacting the business Of such corr
poration In placing risks or effecting
insurance therein.
I therefore believe it is as necessary
for an officer to hold an agents license
IL he intends to solicit insurance for
his corporation ag for an employed
agent of the company to have such
license. Yours very truly,
(Signed) C. L. Young,
Assistant Attorney General.
The above opinion bears heavily up
on another phase OF the matter. An
officer Of q bank, let us say, receives
authority to act as agent for q 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, it
c~onfers authority exclusively upon the
individual to whom it is issued. The
agent cannot delegate authority to
others to represent him. Section 1909
provides that no agent OF sub-agent
of any insurance corporation of any
kind, except county mutuals, shall act
II aid in any nne in ~transacting
the business Of Of with such cor
poration, in placing risks or Affecting
insurance therein, without first pro-
curing from the commissioners Of in
surance d certificate Of authority as
provided by law.
These requirements may seem harsh