THE ATTORNEYGENERAL
OFTEXAS
GERALD C. MANN
-N
ATroRNFzY (fENERAL
Honorable'Charleg Lockhart
State Treasurer
Austin, Texas
Opinion No. O-3855
Re: Would the'3tat~eTreasurer be
reqUlred"or permiti%% 'under
Texas Statutes'to accept the
describe8 deposit by the Re-
public National Life Insurance
Company?
Att In: Mr. Chas. 0. Rice
Dear Sir:
Your letter of August 5, 1941, requesting an opinion-of
this department, upon the above stated question, has been received.
We quote from your letter as follows:
"We hand you herewith a letter which this-depart-
ment'received.today from Mr. George Van Fleet,
Actuary of'Board'of Insurance Commissioners, in
regard to a certain type of deposit which the Re-
public Nati,onalLffe Insurance Company desires to
make with the State Treasurer of Texas in order to
secure a permit to transact business In the State
of Illinois.
"We would appreciate very~much an opinion from
youin regard"to this matter at your very earliest
corivenience, as to whether or not the State Treasurer
would be required or permitted under Texas.Statutes
to accept such deposit for the purpose as above set
forth.
"You will note that this letter refers to an "'
opinion previously rendered by the Attorney General's
Department under date of December 1, 1937.
"For your Information this opinion was written
by Honorable Richard Brooks, Assistant Attorney'
General.under Attorney General WillLam @Craw, and
as we have some extra copies of this opinion, we are
enclosing one of them herewlth."
Honorable Charley Lockhart, page 2 O-3855
The letter from Mr. George Van Fleet, Actuary of the
Board of Insurance Commissioners, referred to in your inquiry,
reads as follows :
"The Republic National Life Insurance Company,
organized under the laws of this State In accord-
ance with the prbvisions of Chapter 3, Title,~78,
Revised ClVll Statutea of Texas of 1925,“iS ‘apply-
ifigfor a certificate of tithorlty to transact bus-
iness In the State of Illinois. Section 111 of the
Illinois Insurance Code requires that in order for
the Republic National Life Insurance Company to be
authorized to transact buslness in the State of
Illinois it must have on deposit with the proper
supervising authority of its home state $100,000
in securittes for the benefit and security of all
policy obligatLons of the Company.
"The Company desires to deposit with the State
Treasurer of the State of Texas $100,000 in s&curl-
ties in order that it may be authorized to transact
business in the State of Illlnols. It appears to
this Department that the matter concerned In this
case Is very similar to the matter about which the
Attorney General rendered an opinion to you dated
December 1, 1937, relative to the Republic Insurance
Company.
"We would appreciate 1t very much Lf you would
give this matter your most immediate attention, and
advise us whether or not it is within the authority
of the State Treasurer of this State to accept the
deposit referred to."
The opinion of this department, referred,to in the letters
quoted above, construes Article 4993, Chapter 18, Tltle,78,
Vernon's Annotated Civil Statutes. Itwill be noted that such
chapter Is applicable to general casualty companies and that
Article 4993, supra, specifically proHdes, in part:
"Only companies organized and doing business
under the provisions of this Chapter shall be sub-
ject to its provisions. * * * *.'I
Under 'thefacts stated above, the Republic National Life
Insurance Company was organized under the laws of this state in
accordance with the provisions of Chapter 3, Title 78, Vernon's
Annotated Civil Statutes. Therefore, we do not think that.'
Article 4993, supra, and the above mentioned oplnl.onhave any
application to the question under consideration.
. -_
Honorable Charleg Lockhart, page 3 O-3855
Article 4739j Vernon’s Annotated Civil Statutes, pro-
vides :
“Any life insurance company, accident insurance
company, life and accident, heaIth and accident,“or
life, health and accident insurance company, organized
under the laws of this State, may at its option, de-
posit with the State Treasurer securit’iesequal to
the amount of its capital stock, and may, at Its
oetIon, withdraw the same or any part thereof, first
having deposited in the treasury In lieu thereof
oth,ersecurities equal in value to those withdrawn.
Any such securities, before being so originally de-
posited or substituted, shall ‘be approved-by the Com-
missioner. When any such deposit is’made, the Trea-
Surer shall execute to the company making the deposit
a receipt therefor, giving such description to such
securities as will ldentlfy the same; and such com-
pany shall have the right to advertise such fact,
or print a copy of the treasurer’s receipt on the
policies it’may Issue; and the proper officers or
agents of each Insurance company making such deposit
shall be permitted, atall reasonable times; to ex-
amine’ such securities and to detach coupons there-
frbm and to collect’Interest thereon, under such
reasonable~rules,and regulations as may be prescribed
by the Treasurer, and’the Commissioner. Such deposit
when made by any company shall thereafter be main-
tained’as long as saLd company shall have outstanding
any ll~abllltgto Its policy holders. For the purpose
of State, county, and municipal taxation, the situs
of’all personal property belonging to such companies
shall be at the home office of such company.”
It will be noted that Article 4739, supra, authorizes
any company named therein, at its option, to deposit with the
State Treasurer securities equal to the amount of its capital
stock. This statute further provides for the withdrawal of
said securities under certain circumstances and conditions men-
tioned therein and the substitution of other securiti,esin lieu
of the original securities deposited, further providing, that
any such securities, before being so originally deposited or
substituted, shall be approved by the Board of Insurance Commls-
sioners . Under the above mentioned statute, such deposit when
made by any company shall thereafter be maintained as long as
said company shall have outstanding any liability to its policy-
holders.
It is clear from the above mentioned statute that any
company mentioned therein is authorized to make a deposit with
Honorable Charley Lockhart, page 4 O-3855
the State Treasurer'under the proVlslons'there6f and that the
State Treasurer is authorlzed~to accept and receive said deposit
and shall execute to the company making-the deposit a'receipt
therefor, giving such description to such Securities as will
ldentlfy the same.and such company shall h&&the right to ad-
vertise such fact; nor print a copy of the treaiur&'s' receipt on
th6 policies it may issue. We think that the'above MntLotied
cbmpany has the'right to make 'the above'tientionedaeposit 'pro-
videa said deposit does nbt exceed the hapital stock bf said
company,'and, as above stated, the treasurer Is authorized to
receive and accept the same. Whether or not thls"“deposit'ful-
fills or meets the requirements of the Illinols~l~w is a matter
on which we express ho opinion. In other words;~we think that
the deposit can be tide under Article 4739, supra, if all the
tiondltionsof said'statut6 are complied with regardless of the
tiotiVe,ofthe dompany which prompts the tender and deposit. Of
boiwse, when said depo~slt1s mad,e'itis subject to all the pro-
visions of the above mentioned statute.
Trusttng that the foregoing fully answers your inquiry,
we are
Yours very turly
ATTORNEYGENERAL OF TEXAS
By s/ Ardell Willlisnis
AMell"Willlams
Assistant
AW:ob:wc
APPROVED 3EP 2, 1941
s/hover Sellers
FIRST A3313TANT
ATTORNEYGENERAL
This Opinion Considered And Approved In Limited Conference