OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Ii~rablo Walter C. laodwerd,
E0erd of In6cranoaCdPlairsionero
Austin, %x44
dssortbd hate b.oea
ed in r4ttlu4nt OS
nation OSt&4 Highway
, a ibCiQPaCP1 IWU~S’WN~
Cr th4 &WQVidQn5 Of
Revricwd C%ril 8trtder
4 that the bulk of WI4
a writtea oa a mttlal
IIP QSmSt Q&883,nbhh COnt4a-
t es perc4mt or the prdum dll b4
oh end the balma la alae *pad
5klXa4at5, the tirst to mature one
moBth from the s?Swttve date of the polioy.
It vat elm faua4 tht UaQald n0t4 lnatall-
IuntEmm8inla a l4 la54t6 or th* & XOb en& e
after th4 sr~lratfon of the polfay on4 that
trot4 b&lamer l- Swquantly io 4XC458 es un-
6arn4d pra&a5 wkea poliofer ere oanoel6d.
Xonorebl8 aalter 0. woobard, Fag4 8
"It la the Qraotio4 of tha Sxobange In
ulsposlng af unoollaatlbl~ not4 balaaaen on
*~tpi~rd p411010~ an6 n4t06 in 81100ma or UO-
oarned pmmlumn on conoel4d p4lloIeu to treat
th4n III returned Qres.iums by ruanlng onaorro-
Pients to the polloI4s, nhioh states lc rubstance
thst the premium shuuld hare b44n th4 amount
lotlmlly 001180t.u. This pmctIo4 Iran ths 4r-
ra0t 0s ~au0in.g *groec premium r404IpW rrori
wbleh Oooupstlcn Pax 0omQutatIons we ma44 4n6
reduoee *earned pr4mItuzs* rhloh are us4d In
adoulating clsim llsblllty r4r ;corkta4n*a Commpon-
utlon and fubllc Liability loare by the D!bedule
*P' ronruls.
-It 18 the aont4ntlon of the ShahaM that
4 pr4mlum is n*Ither reoolred no r larns4 it col-
leotion Of In premltn note ir not mad., Avon
though oot4rqo ir furniah~. Ph4 .sxamI~~r#
tak4 the ponltlon that a $rdiu~ fs reosIv4d
wh4n fh4 %rohanm lcoeptr either oarb or netes
or both in eettlnmeat af the QrdUB an4 IUrnishro
the cornrage ~rorldml In the polioj; and that
f&ilUrO t4 plk0 OOli~OtiOn 0s l LLOIA artW tirelOh-
h6 RUOh0079ZVl@ 4008 aOf CMlX'Y4 t0 X'44UO4'IJTOU
gnwmlumr444iptd. Tbo mamIaer0 furthat oonknd
that a QrdUr tr urn06 rlmn ths Kxaherrge ha0
rwma30b the 04vsr8ga proribad tn th4 Q41107, 4nd
S6i~re to Bake collection of II not@ aQo4pkd in
fiaiaeat thenof 6448 sot redrroeIt8 prsniua earn-
.
-Twcj qusstlcns arlw cut cf the r4eIt44
grao-
tices. naaa4 thin 04partnwnt:
aQvIo0 Irirat, it
'CrQE8 Pr6miun R~oeipts', ¶a uaee in Art1010 7064,
Tit14 78, ~ovIs44 Gi~ll sktUOb&i Of Taxm, COnlM-
Qleter that pramiums bata been raosIr~Q whoa note6
ruoh as thorn4 4esorIb84 Elsreln hare bun l8eaptcl4
In aettl4tront of the pranltm aooount. (Thoa4 n&48
are oarrled 66 sdmittmd lcseet4.)
wmc4n4, IS, In your opinion, greafuru Mate
bun aorned uhen oovcrre@ QrovId4d In the Qcltoy
has boon Surnishrd to ~mtredo aho ZeIJ. to nati
prbBiUB h4tO ~Jfdtkiltl."
780 ,.i
Ifonorablle Xalter C. Boodwerd, P8ge 5
14 g0ur rirrt question 83~ refer to krtlcle 9064,
Title ?0, ~evI60d ~lrll statute8 4: Texas. Fa essum that
YOUhave reterencs to Article 9064, Title lZ2, F4rn4neS
knnotated Civil Ctetutss, which reseri am followar
Yvarg Insurance oor~orntlon, Lloyd*6, pJr reolpro-
cala, nnd eny other organization or conoern trsnssotln~
the buvlness or Zlre, marine, nmrlae Inland, aooldent,
cr4dIt, title, lIr66took, rldellty, guornnty surety,
0nsu51ty, or any other kind or character of in51~8noe
burIne85 other than the business ot life Insursnoo,
ana other than fraternal bewit s6eocI6tlone, within
this 2tete at the tirPs or filing Its annucil stat4nont,
shall report to the Board of Induranoe Oo~~Iado~re
fbd gross aawunt of prwaiums r4ceIoed upon property
r*loocted In this Sate or on rl&sd,ocated In this
5trt.o during the prmoedlag pm, &cl etaoh of ruoh la-
suranoe carriers shall pay an 4auualtex upon suoh
gross pr4miam receipts a6 roil4w8t ehall mvm t4f 4r
three ond trentpfirs on hundredths (3.25) .I?& out,
QrOlided, en? suoh Imumno4 oarrl4rs 6oing two
that
(al or aor kinds of lnwrei3oeburIn458 horein mUerred
to 8ball pey th4 tax herein lrrled P on it8 grosr prun-
Ium rcoalpte whew rnr’srro4 to In th 4 P lau ahnll b4
the tot.61gors amount of Q~~BI~BBreceived on 480h
and everr kind of 1nsursao4 or risk writton, 4xoept
premlrme m4ivea from other 1104nasd 001~ nler ror
r4lmurnnoe, lsrt~ return pr0mlummand dir im 44nd8 paid
polioyholderr, but th4re shall be n@ 444uotfon far
pr4mIurPapaid for rrlnsuramm. The grams premlum Fe-
o4ipt8, as above defined, shall be reported an4 shown
88 the premium reoalpts In the re’port to the Bosrd of
Insuranc4 GcmnIsoi:~ers by the Insuranoe oerrI4r8,
upon the worn stetsmentli Of Ore ($2) prinolpel otiIosr8
or euoh oarrlerc. Cp;.;n reoelpt by the Bowl cif Insur-
anob G6mmissicmers of the sworn atatenmtt, oho*ing
the gro8e pr8mI~ r406dptB by suoh Insurance Oarriers,
,,the i3orrd ol’ Ineuranos CommI56Ionsrs ahall. asrtlfy to
the Eerlte Treaeurer the umouut of tax66 duo by 4aoh
Insurance aarrI4r, ~hloh tar shall. be paid to tb4 Stats
Treaeurer on OF before the let of bfimah roZlowing.and
th4 Treeaurer ah611 Is6ue hlr receipt tc eueh aerrfar
which e51all be evidence of th4 payment ot euoh taxes.
RG euoh Inmurenae carrfer shallreoeire a permit to do
business in this Ltirte until all auoh taxes are paid.
If sny such Iasurcnce csrrie- * &all heor a6 much es one-
Pourth of It& entire 6s6ete, EC ehowu by raid sworn
~tat”xm~;e~“~~-.~~~ :; ;,“I,“; all of tha followin& 66Our-
ities: -tata, bonde of thle Stats tr
or &ny auunty, iSiO6rpoXVitEdoity Or town 0r this r:tate,
or other prcperty in thl6 State in whleh by law suob
Honorable halter C. Woodward, Pago 4
ineuranca carriers aay invest their funds, then the
annual tax or say such insurahoo oarriers shall bo
one and one-fourth (It) per oent of ita said gro8s
preaiu~ reoelpts; and if any such lnsuranco oarrier
shall inveet as aforesaid as xuoh as one-half of its
aase I!8, then the annual tax or euoh insurance oarrler
shall be five eights of one per cent of lte groa8 prem-
ium reoaipts, as above defined. ho oooupatlon tax
ehail be lovied on insuranoe oarriers herein rub)oeted
to a gross proalum reorlpt tax by any county, oltr, or
town. Ali autuai fraternal benevolent aoeoclations, now
or herearter doing business in this State under the
lodge system and representative form of gcvernoynt,
whether organieed under the iaws of this State or a
roreign Ltate or oountyy, are exeapt from the prorlaion8
or thi8 hrtlole. The taxes aforesaid shall oonetftutr
11 taxes coilaotlble under the laws of this State
7 against atiy suoh lnauranoe oarriers, exoept the main-
tenanoe tax provided for uader rrtfole 4908 and the
tax on promlIMp reoelred under Aorkmen*r Qoatpenaatlon
Ihsuranae policies, ae prorldad for in Heue Bill Xo.
471, Chapter ZS, General and &peclal Lawa, Torty-filth
Legislature, Bagular Seasion; taxes prorlded in Eouse
Biil ho. EM, Chapter 126, General an6 Speolal Laws,
Forty-Sirth Legislature, Regular Session; and Senate
B1l.i 77, Chapter 336, General and Speoial Laws, Fortg-
filth Legislature, Re&ular 6ession; and nc other tax
ehall be lerlod or oolleoted from any lnauranao oar-
rler by any oouaty, oity, or town, but this law e&all
not be construed to prohibit the levy and oolleotion of
State, County, and munioipal taxes upon the real and prr-
sonal property of such earrler. Purely oo-operative or
mutual fire ineuranor oompanlee oarried on by the members
thereof solely for the proteotion of their own property,
ah4 not for profit, ahall be exempt from provlaionsof
this law; however, foreign aseessmnt oaeualty ooapahlee
admitted to do bueinses in Texas under Chapter 8, Title
78, Wevised Civil Statute8 of Texar of 19E6, shall also
pay a tax of three and twenty-itvo one hundredths (8.65)
per sent of their gross ~exlum reoelpte from Taxao bwl-
neae, aa such rooelpts are herein defined. Provided, how-
ever, ii any emoh oompang shall have an amount equal to
one-htdf of the gross amouxktof assessments, 6~08, prWdAUM,
Honorable salter C. modward, Rgo 6
or ether amount8 oolleotad ira polloyholdrrr within
thle State during th8 pr80edi9g,yearr 9s 8hom b7 th9
sworn st9twent herein required to be Siled, lnrrrted
in any or all of the above-mentioned 89ourltle9, then
the annunl t..sx of suoh campmy nhall be two (2) per
cent of its ~fd reoeipts for suoh preoodlng pertod,
end if suoh ccmgwmy ahall have invrsted 88 lfo r o uid
an amount equal to the pou8 9auwnt of muh reoaiptr
for the prroedlng year, a9 8han by raid 8wora rtato-
rent, then the annwl tax of 8uoh oompmy 8hal2 be one-
lmli or one per oent of it9 uld reoe1ptm.w
Art1018 5032, Vernon*8 AMOtataUCivil SthtUt98, rud8
in part a9 r0ii0w8:
*Any o9rtI~Io9t9or suthorlt; ahall oontlnuo in
atroot until th9 mu oertifloutm of authority bo l8-
wed or 9p9oirioaiiy refused. The 9oh9Uulo of r9e9
ret out in ktlole 89&O, 10 iar 99 pertlaant, 9h9ll
apply to rsoiprooal exohmager 99d their htforzta~m in
faot. Said mxohango8 8h9ll pa7 a tu or thrw and one-
fourth (8 l/4) per o8nt on 8l.l pr8mlua8 oollmoted, u-
oept ilrb and workmen*@ ocsp9nsation pr8ml988, md9r
the provisions of kxtlcle 7064, Uerisod Clvll Btatute8
of Texas, lWS, an maendmdby HOUIJOBill No. 6, Ghaptor
498, EN&J* ?%O, ArtSal. 4, AOtS or the Third Called 808-
alon, Torty-fourth 199116,a8 am89494 Aot8
1989, yorty-tlith Lo Xou8e 1#U~ Ho. Ul, 890-
tlon 1, ae -9d k6t9 19219, llortpmlxth L9gi9latw9,
HQUWBill 190. SW, aubjoot to r9duotlcPI b7 %nvertmant
In TeXaU 9eourltlss 99 therein protiaod; and exalumga9
wrftiw workuoo~9~00mpenuatfon lnrtmnce rb9U p9y a
tax or one-hrU (9) of one ( 1) per cent of the work-
men*9 ooapenutlon premlumm ooll9otedaider the prorl-
9ione of Artlole POtMa, Retired Oivll Ststut88 ot Tuna,
1988, e8 99aotsd by 80~90 Bill Uo. 8, Ch9ptu 406, Rg9
eO40, Artlole 4, Aots ot the Third &119d 898810~, forty-
fourth I,egl918ture, 19R6, a8 aa9nded Aota 1989, Forty-
tiltthLegislature, by House Bill Ilo. Ul, Seation l-b,
aa 9manded Aota 1939, Forty-sixth L9gI8laturr, Bouso Bill
Ho. 587; end a further tax of three-Sltth8 (3/5) ot on9
(1) per oent or 9uoh Z9mrer mount a9 the Board Q? Inour-
anoe Commia9lona9 shy a9e999, on workmen*9 Wap9il99tion
premium oollsoted in thlr dtate under the proviaiona ot
2prgter M, motion 1, Aot9 oi r937, Forty-ilrthr I.@9l9-
.
783 :.Y
honorable Walter C. Woodward Page 6
"Provided furth@C, that ah odditio8al tax of
one-fifth (l/a) or one 1) per omnt or suoh lesser
amount es. the
__ . Board.- of. nauranoa Conuaiealonsr9 say
assess snail DB paza my euoh exchanges on gross prem-
iurns oolleoted for motor vehiole inmuranoe under the
provisions oi Chapter 853, Acts of the Fortieth Leglrr-
leture, as smeoded Acts of 1937, Forty-rifth Legisl9-
ture by senate Bill No. 77. Aata 1915, p. 2698 Aoto
1939, 46th Leg., p. 417, # 7."
The word Wgro99" is derinad in the oaee of Fire AQ-
aooiation OS Ehlladelphia v. Love, 108 S. W. 158, by the Su-
preme Court. he quote from this case as followa:
"The word ~groam~ is defined: *Whole2 entirea
total; without deduotioo. * 'k'mbmter~m Diotlomry; Soott
v. Hartley, 186 Ind. 846, ab h. B. 886. T& lengaap
undrr oonmfderation in the statute iat *The gro99 amount
of premium9 reoaited In the state.' There ia no U-
bigulty in the language of the statute, and there 8a8
be no doubt a6 to what its ordinary Prsaning is. The
rule governing the interpretation of 9uoh languafheg
thus stated In Chwnbero Y. Bill, 86 Tex. 472;
l9.nguags19 plain and unambiguow, there is no room ror
oon9tru9tion. It 19 never admissible to resort to 8ubtlm
and forced oonetruotlons.to limit or extend the mea90
w Of 1&ll&JUa@. hnd, where words or expremelon8 have
aoqulred a definite laeaning in law, they mu8t be 90 ex-
pounded.' Under the rula or interpretation itret quoted
there ia no room for OoMtruOtion of the lmgua#p oi the
mtntute. It just simply suran9 that the entire mumre-
oeived by suoh insurance oompanlem am premiplps in this
State ehould be the basis upon whioh to emtiarate the
oooupatlon tax required to be paid by suoh companie8.
If, however, there were an7 want OS. oertainty in the
language used, the Legislature derined the term in
theme words: *Gross premium reoeipt9 are snaermtood
to be a premium reoeipt reported to the Cosiuiemioner OS
Insuranoe and Banking by the inmuronoe oompanies upon
the 9worn rtatenent of two principal orfioers OS suoh
oompanlem.~ The premiua rearipte required to be re-
ported by the ofrfosrs of the fnmuranoe oompaniee ar8
the gosa premiuma reoeived by ths ooapany in this
state. Theretore, takcing the Zanguiig9 oi the entire
provision into eonsidsration, it means, as stated be-
liouorable W6lter 0. woodward, Peea 7
fore, that the b6e:e upon rhioh the tax 16 to
assessed la *the gross pnaiua reoelpte,* the
whole amcunt reoelved, without deduotion or abet,
plcnt . -
The tome Rpremlut5~, ~esee6amentW, 91epoeitm, ei
aa used in the law of insurance in oonneotlon wlth the worn
*notow, refer to the lmtnmente given in pl6ce of payment,
or in payment, in whole or in pert, of in6urenoe premium6 or
66606mmlts. They mey oonetltute aotwl payment, or mere evl-
denoe of a debt, and refer to prdume or areee6mentr parsed
or ourrentlp due, OYto rall due in the ruwe. (Couoh on In-
eurenoe, seotlon 681)
rfs above etntetld a premium noteamy oonetitute pap-
Tat or It JMY merely avl&enoe 6 debt representing the prm-
In detenulnlng lgtc Woh al660 6 partlouler note f6118,
the'teet 16 the intention oi the p6rtiee. (Dunoan v. United
lvhrtu61 Fire In6uranoe 00.. 264 6. W. 1110)
Ubere premium6 are peyable %n advenae end the pollay
end the eppllo~tion aonetitute the aontraot, the aooepknoe of
;hz premium note lneteeid or oash aSfoot a payment 0r the pnm-
. (Amlceble Llte fn6. co. v. mite, 38 s. 7;. (2Q) 660)
In vlaw or the forego authorities, you ere teeQeot-
ruiy adViSed thet it is the opin"r: on of this Departanent that
the term "grooe premium reaclpte* es used In krtiolee bOS2 and
7004, ~pre, nenn6 end inaludee all premiums roaeived whether
in oabh or by note, uhloh erreOt6 6 pejrorent Of th0 PraalUn.
Bore we are ooaaerned with the propoeltlon of whether or not
the notes ,6emorlbe8 above aonetitnte or effect a payment Or the
pemium. Xe believe thnt uafler the ieots stated, the not06 In
gueetfon erfeut a peynsnt of the pre5lume.
,/’ In er16wer to your eeaond question, you are rurther ed-
..keaU that lt is our opinion that the pre6&upo(Ih6ae been e6rned
when ooverage provide& In the polioy h66 been furnished to the
aesnred, notwithctandlag the f6at the aeeured fails to make
the premium note paym6nte.
Xonorabl,e Walter C. W00bmd, R&O 8
Tmasting that tha r0r06cag fully enenerm your in-
quiry, veaare
Yours very truly
APPROVEljNOV
20; 1940
,
ATTORHEYGENERAL OP TEXAS