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repealed,the chartergrantedunder the statuteis not revokedunless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