The Laws of Texas, 1927 [Volume 25] Page: 390 of 1,111

                                
:374        GENERAL AND SPECIAL LAWS.
SEC. 3. To insure the adequacy and reasonableness of rates
the Commissioner may take into consideration experience gathered
from a territory sufficiently broad to include the varying
conditions of the risks involved and the hazards and liabilities
assumed, and over a period sufficiently long to insure that the
rates determined therefrom shall be just, reasonable and adequate,
and to that end the Commissioner may consult any rate
making organization or association that may now or hereafter
,exist.
SEC. 4. The Commissioner is hereby authorized and empowered
to require sworn statements from any insurer affected by
this Act, showing its experience on any classification or classifications
of risks and such other information which may be
necessary or helpful in determining proper classifications and
rates, or other duties or authority imposed by law. The Commissioner
shall prescribe the necessary forms for such statements
and reports, having due regard to the rules, methods and
forms in use in other states for similar purposes in order that
uniformity of statistics may not be disturbed.
SEC. 5. In addition to the duty of approving classifications
and rates, the Commissioner shall prescribe policy forms for
each kind of insurance uniform in all respects except as necessitated
by the different plans on which the various kinds of
insurers operate, and no insurer shall thereafter use any other
form in writing automobile insurance in this State; provided,
however, that any insurer may use any form of endorsement appropriate
to its plan of operation, provided such endorsement
shall be first submitted to and approved by the Commissioner;
and any contract or agreement not written into the application
and policy shall be void and of no effect and in violation of the
provisions of this Act, and shall be sufficient cause for revocation
of license of such insurer to write automobile insurance
within this State.
SEC. 6. Nothing in this Act shall be construed to prohibit
the operation hereunder of any stock company, mutual company,
reciprocal or inter-insurance exchange or Lloyds association
or to prohibit any stock company, mutual company, reciprocal
or inter-insurance exchange or Lloyds association issuing
participating policies; provided no distribution of profit or dividends
to insured shall take effect or be paid until the same shall
have been approved by the Commissioner; and provided further
that no such distribution shall be approved until adequate
reserves shall have been provided, such reserves to be computed
,on the same basis for all classes of insurers operating under
this Act.
SEC. 7. It shall be unlawful for any insurer, as defined in
this Act,'or its officers, directors, general agent, State agents,
special agents, local agents or other representatives, to grant to
or contract with insured for any special favor or advantage in
dividends or other profits, or any commissions or divisions of
,commissions or profits to accrue thereon, or any compensation or