R-497
Eon. George B. Butler, Chafnrmn
Board of Insurance Commiss%onars
Austin 14, Texar Opinion No. V-296
Attention: Hon. 0. Y. ICeetch, Be: The legality of
Aotuary charteriq a life
insurance company
under Art. 4752,
V.C.S., to issue
annuities O
Dear 8ir:
In conjunction with the sublisrion of Articles
et Inoorperatlon of the Coarunltq Life Insuranae Company
of San Benito, Texas, fsr appreral and certitfcation by
the Attorney General under the provisions of Chapter 3$
Title 76, V. C. Sar you request an opinion as follows:
*In our review of the instruments we
noted the stated purposes of the proposed
corperation to be, in part, 'to grF;an,fr-
chase and dirpeae oi annuities. 1
4752 stated that oompanies organized under
its provisions ‘may tissue, oombined or sep,-
lrately 9 life, accident er health insurance
policies. D e1 Is the footlance o? annuity
contracts within the meaning of these pro-
visfons?”
As a general rule the courts have held that ln-
surance does not include annuity contracts, The two are
different and clearly distinguishable. This is succinctly
stated in the case ef Daniel, et al v. Life Insurance Com-
pany of Virginia (Cit. App., Austin), 102 S. W. (2dJ 256,
as follows:
-From a careful examinatien of the an-
‘thorlties upon the subject, it Is quite
manifest that in general parlance insurancr
does not include contracts of annuity. This
has been the invariable holding. wherever the
subject has reached the court for decision."
Hand George BP Butler, page 2# V-296
‘.I’ While 4nnufty ao~ntracte are dfif’erent f?4m foa
suranqe contraota, neverthel*,rr a oompeny w%th charter
power to issue beth types ai contraots would be within
the meaning of the provislona or the quoted language of
Arttole ‘4752~
In order to gaii~ $ho #&ear fnteat of the Leg-
islature we must loeb not only to the language quoted
from Art ! ole 4752, b& alO.3 to~the ~Sviaiess of the oth* ..,
er Article8 under Chap&e4 31, *file fSo We have amaPnea
the entire Chapter and ni 40 pNhfbftion, express or
implied* whfoh preoludes a &xnpktnyeuoh a# this one fron
issuing annuity oontraots b Nat&e@~,wo Pint%,bxpress rro-
ognitfon by the Leg$slaPuSo t&4% sndh aarilparitea will. JP
gage In the buafneaa ot qnrrlli$y eolStT&Ot8~. Afiiola 4416,
Chapt’er 30 Tit10 7Qg V. 0, 9, provide8 fn )ePtp
to be a co
oharter fnvo
The LsC;lelatWa b this definftion shows 8
clear intent that thfs T n3 ng shall pervade the entfro
Chapter and shall be app, ied wherever ths term “life
Thus the Y.angs\aQ quoted from Arti-
company”
ale 4752, ‘$hg$ 3, Titi4 78 r4adfng: *$~ a .t may lsiaep
deabined OF seperatelyo life& acOfdent or heaPt@’polf~
o.lesO A o ow inoluaes the $asuan~e of Weft e&ntraotap
sinoe au0 bu0iaerss is e% resaly a part of’ t o bwhas
of p~lrptises *peratfng ude2 @hapter 3* !PiIil! !?a+ VnP&
SUNNARY
An Ifnsuranoe company brgaafzed Ond*r
Chapter 3 i Title 78, V, C. S. 1 with a char%
ter purpose among other? to WQrentS purchase
and dispose ,of annuitfeo” is within the mean%
$n$ of the provisions of Article 4752, V. Cb
so I reading: “may issue, combined or sep4ia’
atelyl life4 accident or health insurance
.
Eon. Georgm B. Butler, page 3, V-296
pollcias, . . .* Art. 471‘3, Chapter 3* Tltla
78, V. C. 9.
.