Texas Attorney General Opinion: WW-879 Page: 4 of 8
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Hon. William A. Harrison, page 4 (WW-879)
In 1954 the Supreme Court of Texas had occasion to interpret
the effect of Article 9.27 when i was contended that the title insurance
companies and title insurance business were subject to the regulation
of Article 1.19 of the Insurance Code. Speaking for the Court, Judge
Hickman stated:
" We agree with the holding of the Court of Civil
Appeals that that article (Article 1.19) has no appllca-
tion because Article 9.27, Chapter 9, of the Insurance
Code, relating to title insurance companies provides
that no provision of the Insurance Code, except Chapter
9, shall apply to title insurance companies or business
unless expressly mentioned, and we find no such men-
tion in Article 1.19." Board of insurance Commissionu
ers, et al, v. Title Insurance Associathion of Texas, et at,
Tex. , (1954), 27Z S.W2d 95.
We find nothing in Article 2 1.14 of the Insurance Code, dealing
with agents and agent's licenses, that would indicate that such article
is any more applicable to title companies or business than was Article
1.19 in the Title Insurance Association of Texas case, supra,. Indeed,
when it is noted that Section 3 of Article 21.14 expressly prohibits a
corporation from being licensed, while Article 9.22 provides that cor-
porations may be appointed as "representatives of title insurance camn-
panies, the conclusion is inescapable that the Board may not require
such "representative" to be licensed. The long standing administrative
interpretation by your Department is consistent with this conclusion.
In light of our answer to the first part of your Question 2, the
remaining portions thereof become mroot.
'With respect to your Question 3, you are advised that the pay-
ment of commissions and the allowance of discounts by "representas-
tives" appointed by title insurance companies constitutes a violation
of Article 9.22 of the Texas Insurance Code both on the part of the title
insurance company and the appointed '"representative." We again quote
Article 9.22 in order that here it may be conveniently analyzed:
'BNo commissions, rebates, discounts, or other
device shall be paid, allowed or permitted by any cmrn-
pany, domestic or foreign, doing the business provided
for in this chapter, relating to title policies or under-
writing contracts; provided this shall not prevent any
title company from appointing as its representative in
any county any person, firm or corporation owning and
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Texas. Attorney-General's Office. Texas Attorney General Opinion: WW-879, text, July 11, 1960; (https://texashistory.unt.edu/ark:/67531/metapth267491/m1/4/: accessed April 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.