Untitled Texas Attorney General Opinion

THJCAIT~RNEY GENERAL OFTEXAS HonorableGeorgeB. Butler,Chainnan Bond of Innunmoe Camniasloners Au&in, Texae Dear Sirr oplnlonIlo.O-7002 Rer May the Bankers StandardLife InnuranoeCanpany,a ntatewide mutual Mneonment ocmpsnyop- eratingunder Oh. &, Art. 5068-1, T.A.C.S.,and amendmenti,which wan or&lnally lmoorporehed an a FraternalBenefitSoolety,emend its purponbolaune in order to lnalude the lasuanoe of health and aooldentpoliolemin addition .to thevritlng of life insurailoe polioier? The subjectof your lnqulryis the BankersStanda Life Ineuranoe Cclapanyof Dallae, Texae, ae pointed out in your letterof December 15, ' 1945, originallyipoorpomted ae a BraternnlBenefitSociety,Chapter 115, General Iawn of the 26th Legislature,Acts of 1899. We quota the followingportioneof your letters wattoriginallyenaotedby the 43rd Isglelature,Aate of 19339 Ch. 245, with a&ealuentemendmentsto Section 6,:notmaterialherein to aorneider. In Section 14 of Article 4859f, it Is ,expreeely providedthat "the ohsrtereof all oorporatloneoomplylngwith thle Aot are expreaely oontlnuedln force during the ternw of eaid ohartereeubjeotto the pro~lslo~ hereof." In Section 19 the artioleprovldeethat thle Aot qhall In no wiee affeotor apply to oompanlesoperatingae looal~utual aide, a.8fraternalbenefiteooietlee,reoiprooalezohangee,and etc., and except ae expreeelyprovided,no lneuranoelaw of thle State shall apply to oorporatlonsoperatingmder the Aot, and no law.herafter enactedehall apply to them unleae they be expresslydesignated therein. Ae to the repeal of the Act of 1899, the rule in Texae 1~ to the sffeot that where a generalstatuteprovidingfor a oorporationlo Honorableporge B. Butler,page 4 (o-7002) repealed,the chartergrantedunder the statuteis not revokedunless there la a qpeolal provlelonln the repealingetatuteto that effect. State ~8. Texas Mutual Reserve Life InsuranceCcrmpany, 51s. W. (26) 405, rev. on other @xmds, 58 9. W. (26) 37. We fall to find any pro~lelonunder Artlole 4859f, Chapter 8A, Title 76 of the statute8authorlr;lng an amendmentto a oharterof any oanpanyoperatingunder the provlelonaof that chapter. The purpose olauee of the Aot ~88 to bring all of thoee omnpanleeor aesoolatlonsto which the Aot le applicableunder its provleloneor have their chartera forfeited. The ohsrteraof all oorporatlonmoanplylngwith the Aot and doing buelnesathereunderare expreaelyoontlnuedin force during the terms eet forth ln maid oharter,but tvubjeot to the provlsloneof the Aot. In this oonneotionwe find no prohibitionin Art. 4859f to sash mutual assesementlife lneuranoeoompanleewriting aooldentand health lneuranoe providedtheir ohsrteraauthorleethem to do 60. The ohtsrterorany amendmentatheretoof tbeBex$keraStandard Life InauranoeCcmpanyare not before ~8, and we are informedthat euob ocmpanyhas been issuede licenseby your deparlmentand operatingunder Chapter8A and Article 5068-1,end amendmentstheretofor many years by owip4lng with lta provlalons. In view of the foregoingprovlalona,we may aaaume that such ocmpauyW(LBlegallyqualifiedand licensedto operateunder Chapter 6A as a mutual assessmentlife insuranceocmpany,and in the absenceof any evidencethat such operationle Illegalor detrimentalto the public interestssuch ocmpanymay exercisethe rlgbtto emend its charter ln keepingwith the provisionaof.~Art. 4838,whioh providesthat euoh aorporatlonshall have such other powers (LBare neoeesaryand Idoldental to carryinginto effect lta object and purposesand Article4839. It is not believedthat the Legielature,in the treatmentof such aasooiatlonsslnoe the Act of 1899 end preaervlngthe oharter righta of those qualifiedunder Chapter 84 of theRevised Statutes,intendedln anywiseto limit eny originalcharterpowers and the rlght to emend the same 80 long a the amendmentdid not seek to enlargeav give more liberal powers to the aeaocietlonthan 18 grantedunder the orlgiealact of incorporation. It la thereforethe opinionof this departmentthat the Bankers StandardLife InsuranceCcmpeny,Dallas,Texas, operatingand licensedunder Chapter8A, Title 78, V.A.C.S.es a state-widemutuelaeaessmentocmpanyis authorizedto emend the purposeclauseof Its charterto Includehealth and accidentbenefits in connectionwith the Issuanceof its life insurance policies. Yours very tn14 '1833OPIRIOR APPROVEDJAR 25, 1946 AlTORUEYGERERALOF T5As CaaSIDERBD /a/ CarloaC. Ashley BY /a/Vim.J. R. King NVDAPPROVRD FIRST ASSISTNiT Wm.J.R. King n?Imm!ED ATTORlVEIGl!WERAL Asalstent cmCB UJRK/JCP/de