OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
HOmrablo 0. P. Lookhart, Chalmim
Board of -e ColJmd.sslol#rs
Austin, Texas
Dear sir: NO.o-6A
opiniou
Re:
stautes, and re-
1944, requesting
tbo follOlag three
Of 8 OOUtl'8Ot With the
Hon. 0. P. Lookhart, Page 2
"(2) Under Seotlon (a) of said Article
48608-7, must the ~prdmium oollsot0d in advanoe
represent an annualspremium, or may It r0present
something lass than On 0nnu01 premium? In this
OOnnOotIon,the GOneral Rules OS Texss Automobile
Casualty Menu01 promulgatedby the Boerd provide
for paying premiums In monthly Installments,and
the first payment must be at lbast 16 2/j per osnt
Of the sstimatsd tot01 annual prsmium, and provide
under oertaln 00nditIOnsior vriting a polloy on
a SIX moptb8 bssis In whioh oasb the premium shall
bo 55s o fea lnnuOl prOmIum. WOuld on0 Installment
IA the first oaae or th&prOmIti for the 8Ix months
polity Inths aeoond 0800 qwslif+yas a 'premium'
under this f3eotIonl
“(~3) The.Oen~ral Mutual Insuranoe Company
proposes to write both ~Iw and 000sualtyInsuranoi,.
Under Seotlon (d)~oS said Artiole 48608-7, what'
amount of ~oash and Invested assets* Or surplus
must it hsve to be lioensed and oontInu0 In bu&
noas, fifty thousand doll&r0 or ssventythousand
dollars?*
Article 48608-7,Revised Civil StatutOa, to'whioh
your question0 relet0 pr~~Idesr
'Ioooompidiporgmlsod under this Aot shall
issue polIoIeb*~rtransaot 0ny business of Lnsur-
ano0 unless It shall oOmply.vIthth0 oonditlona
f011cMng,~Or until the ROE&l haa, by fOrma li-
OOAS~ authorItt&It to do so, vhioh lloOn~e ho
shall AOt isaIm until the oorporatfoA has oomplled
with thy follouing OOAditiOM:
"(a) It Oh011 hold bona SldO OpplIOOtfOM
fop IMUZWLO~ \rponwhioh it shall I~~u~sintultan-
eoualy, or It sh011 have In Sor00, at 1005t tWOntY
polio160 to at leaat twenty membOrs SOL the O~m0
I&XI of inauranoeupon not less than three hundred
separaterisks eaoh within the m0xl.m~ ain@ risk
aesoribedherein;
Page 3
HOA. 0. P. Lookhaltt,
"b) 'J&Obsxlmum sbglo rI8k* shall not m-
oeed tv6nty per oent.of tha admItted assets, or
thrwytImesthbaverageI?iak~ena paroad of
the IAmmAQo IA form, wbIabov.rla the groat*F,
ala reIAsumA0~ taking&foot 0ImultaAeous
thepoli~boSqdeduat+d indotomdnhq &?!i.i-
mum single.risk;
"(0) Fw the $urposo of traasaotlnng workme~'s
ocaaponaatlonIrmmmoswho~~ sbllhacn ap-
p11oatianafrm at lwat iiitJ loyoraforlaaur-
aAn0 onuhioh poliol4Ba 7 lswd oovwi.r4g
arm to be
not 1000 thaA tvo m e@~o~ uohauoh
~lagbebeingoonsiderabae~te~akt.urd
tbaplwvi8IoM tithoegardto maxImum sIx@a risk
Sh@l.tAOtapplyi
s"(d)- It'shallbavo oollaotada p??eadwin
advaaoeupon~*appl~imtion~the totalofvhloh
premiumshallIjBbold In oash or soaurltlesZn
vhiohstoak f~.and~8ual~.insua'anoe oompanies
are wader tha Tear80lav authorhad to Invest. It
'ahallhaveandatallthas maIatalnaashaxl in-
vast& assets of not lass thsn f%fty fhauspad dol-
IASUZWO~ oampany and not
'time*he oompany shallhave asset8 or sumlu8 in
_ 108s&imlatthaAIaraqul~fortha Insuranoo of
polIoies ala the traAsaotIQAof busiruas UamA or-
SMll oua*tit%ngP4Y
t!ss:%tL telyrqmtawhoondi-
tioA to tbm Board of IMuraAoo COIIDdss:ioAers,
llblah
.. may IA its.disorat1anazdaP a ral.nauraIloe
of tha
: ‘ outotazdinglIabflities
of the oo~in8-a 0th~
ocmpangtru~aotingbu8~88 inthis State -proocHb
to a llquIdat1QAof tba Sam."
T& lbma utiale sets.fd awtaln oomdI~fonr-oh
mustbafulfllladbyamutualbasuranoa
una.r chapter.9, ntle 78 of.said
by the Be-of - cQaQllsafoAers
to write IAsurano..with
thouoeptIonofo~ tion risw, prw~dad for IA P-s'+ (0
Hoq. 0. P. Lookhart,Page 4
suoh OOmgaAy Shall ISSUe Sim,U8AOOuSly, Or h8v0 in fOr00, at
lesst tvemtppolIoIos to at least tvedy mmbexv for tha 88nw.
kind Of -A00 UpOU AOt 108s th8A ths bailA& AWbOl! Of thI'e0
huodred.~ep8lutesiSk8. 'Ilu80wt k~besed upm hono fide ap-
plMetl0na for mtsilLrswnor?. Ue f&xl a0 provlsIon or language
in the. law.,au$hfels lrAsmam* condssIoAers to
?D8AOQOOAtX?klOtS
ialQmofappllmticm8f~poUales of baumnoe almultaneoualy
Is6ued~olr In iem.
'Wo.qmte fro53Wosda and Ptirasea,
Vol. 36, Pomprnent
xdltion, i?.:
pj48
175
HOA. 0. P. %OOkhal’t, &S&3 7
2. The texa “pa-emlum” as used In Paragraph (a)
of said statute, which provides for the oolleotlonOS a pmn.lum
in adtanoe, do08 AOt MOSS88~ily mC8A 8~ annual pl'emium. The '
premium for a polioy baabd upon a bon& Sldo applloa~lonto be
wrItten oa~e sir mc~~thsbaais and vlthla va1I.dregulation of
the Baaw, will wt ~fhez+e@maat of the statute.
3. Befeiyamutual iASUFMQlt Ow OA Ol?@iAita-
tlan und&Cbap~er 9i’2%L~ 78, V..A. C. S. may ba iSsUed a
perEltt~n%tebqthf~~knd ocmsualty IAsuraAae,ItmsthaYe
a aurpltur.lA aaah or~%Amdied las4tts of not- less th8A &WOAty
ThousaAa Bollars.
wxtfo
.c