THE AYTOR~EY GENERAL
OF TEXAS
Gerald C. Mann AUUTXN ~LTEXAR
AT-r,,,~NE:S GKNRC:I*Al.
Hon. Shelby EL. Long Opinion No. O-5706
County Attorney Rer Can common school dis-
Jefferson County tricts and, rural school dis-
Beaumont, Texas tricts purchase group life
insurance for their employees
Attention: Mr. Earl Blaok, under the provisions of House
Assistant B~;i~;:6, Forty-eighth Legis-
Dear Sirt
We have your letter of recent date reading as follows:
“We have received the following letter from
W. J, Holloway, Superintendent, Port Neches Common
School District No. 1.6,
“‘The 1943 Texas Legislature passed House Bill
326, which became effective on August 99 1943.
douse Bill 326 amends the group life insurance law
of the State of Texas to the extent that hereafter
‘group life insurance policies may be issued upon
the lives of all employees, as employees of any in-
dependent school district, incorporated city, town
OP village, which has assumed control of the public
school system within such municipality as employer.”
“‘Since common school districts and rural
school districts were not specifically mentioned in
House Bill 326, even though there was no apparent
intention for their exclusion, there is a question
of legality as to whether or not common school dis-
tricts and rural school districts can purchase group
life insurance for their employees.
“‘1 ‘shall appreciate very mush your getting an
opinion for me from the Attorney General of this
State on this subject at your earliest convenience.’
“The Act that he refers to in his letter is
Article 4764a,, R.C.S. as amended by the 48th Legis-
latur e e
“We’will appreciate your opinion upon this sub-
ject *I@
Hon. Shelby K. Long, page 2 (O-5706)
The Act cited (Chapter 349, Acts of the Forty-eighth
Legislature) defines group life insurance within the meaning
of the Act as “Life Insurance covering not less than 2.5 employ-
ees written under a policy issued to the employer, the premium
for which is to be paid by the employer or by tix employer and
employees or classes thereof determined by conditions pertaining
to the employment, for amounts of insurance based upon some plan
which will preclude individual selection, and for the benefit of
persons other than the employer ***.“I
“Group life insurance policies may be issued conformably
to the terms of Section 1 and Subsection 1 of this Act upon the
lives of all employees, as employees of any independent school
district, incorporated city town or village, which has assumed
control of the public schoo 1 system within such municipality,
as employer; such group life policies to be in conformity with
Acts, 1931, Forty-second Legislature. Chapter 101, Page 172 et
seq*, as amended by Acts, 1941 Forty-seventh Legislature, regu-
lar session, House Bill No. 10&l, and as amended by this Act. In
the case of such school systems as employers the premiums upon
such group life policies shall be paid by the employees and no
part thereof shall be paid by said school district employers; but
there is nothing in this Act to prohibit such school employers
from deducting the premiums on such group policies from employ-
ees’ salaries and paying the premiums therefor with such deduc-
tions.t’
It is our opinion that the statute under consideration
does not authorize the issuance of group life insurance to the
employees of any school district, except those specifically
named in the statute, and your question is so answered.
It will be observed that in the case of school systems
as employers the premiums upon such group life policies shall be
paid by the employees, and no part shall be paid by the employers.
Very truly yours
APPROVED DEC 1, 1943
/s/ Grover Sellers ATTORNEY
GENERALOF TEXAS
FIRST ASSISTANT
ATTORNEY GENFRAL By /s/ C. F. Gibson
APPROVED:OPINION COMMITTEE C, F. Gibson, Assistant
BY: BWB, CHAIFMAN
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