Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
HOmrablo 0. P. Lookhart, Chalmim
Board of -e ColJmd.sslol#rs
Austin, Texas opiniou NO. A o-6
Dear sir:
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 annuals premium, or may It r0present something lass than On 0nnu01 premium? In this OOnnOotIon, the GOneral Rules OS Texss Automobile Casualty Menu01 promulgated by 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 00nditIOns ior vriting a polloy on a SIX moptb8 bssis In whioh oasb the premium shall bo 55s ofea l nnuOl prOmIum. WOuld on0 Installment IA the first oaae or th&prOmIti for the 8Ix months polity Inths aeoond 0800 qwslif+y as a 'premium' under this f3eotIonl
“(~3) The. Oen~ral Mutual Insuranoe Company proposes to write both ~Iw and 000sualty Insuranoi,.
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
'Ioo oompidip orgmlsod under this Aot shall issue polIoIeb*~r transaot 0ny business of Lnsur- ano0 unless It shall oOmply.vIth th0 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~ \rpon whioh 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 inauranoe upon not less than three hundred separate risks eaoh within the m0xl.m~ ain@ risk aesoribed herein;
HOA. 0. P. Lookhaltt, Page 3
"b) 'J&O bsxlmum sbglo rI8k* shall not m- oeed tv6nty per oent. of tha admItted assets, or thrwytImesthbaverageI?iak~ena paroad of the IAmmAQo IA form, wbIabov.r la the groat*F, ala reIAsumA0~ taking &foot 0ImultaAeous thepoli~boSqdeduat+d indotomdnhq &?!i.i- mum single. risk;
"(0) Fw the $urposo of traasaotlnng workme~'s ocaaponaatlonIrmmmoswho~~ sbllhacn ap- p11oatiana frm at lwat iiitJ loyoraforlaaur- aAn0 onuhioh poliol4Ba arm to be l swd oovwi.r4g 7
not 1000 thaA tvo m e@~o~ uohauoh ~lagbebeingoonsiderabae~te~akt.urd
tbaplwvi8IoM tithoegardto maxImum sIx@a risk Sh@l.tAOt applyi
s"(d)- It'shall bavo oollaotad a p??eadw in totalofvhloh advaaoeupon~*appl~imtion~the premium shall IjB bold In oash or soaurltles Zn vhiohstoak f~.and~8ual~.insua'anoe oompanies are wader tha Tear80 lav authorhad to Invest. It 'ahallhaveandatallthas maIatalnaashaxl in-
vast& assets of not lass thsn f%fty fhauspad dol-
IASUZWO~ oampany and not 'time*he oompany shallhave asset8 or sumlu8 in _ 108s&imlatthaAIaraqul~fortha Insuranoo of polIoies ala the traAsaotIQA of busiruas UamA or-
SMll oua*tit%ngP4Y t!ss:%tL telyrqmtawhoondi- tioA to tbm Board of IMuraAoo COIIDdss:ioAers, llblah may IA its.disorat1an azdaP a ral.nauraIloe of tha . . ‘ outotazdinglIabflities of the oo~in8-a 0th~ : ocmpangtru~aotingbu8~88 inthis State -proocHb
to a llquIdat1QA of tba Sam."
T& l bma utiale sets .fd awtaln oomdI~fonr -oh mustbafulfllladbyamutualbasuranoa
una.r chapter. 9, ntle 78 of. said cQaQllsafoAers to write IAsurano.. with
by the Be-of - tion risw, prw~dad for IA P-s'+ (0 thouoeptIonofo~ *4 Hoq. 0. P. Lookhart, Page 4
suoh OOmgaAy Shall ISSUe Sim,U8AOOuSly, Or h8v0 in fOr00, at lesst tvemtppolIoIos to at least tvedy mmbexv for tha 88nw. kind Of -A00 UpOU AOt 108s th8A ths bailA& AWbOl! Of thI'e0 huodred.~ep8lute siSk8. 'Ilu80 wt k~besed upm hono fide ap- plMetl0na for mtsil Lrswnor?. Ue f&xl a0 provlsIon or language in the. law. ,au$hfels lrAsmam* condssIoAers to
?D8AOQ OOAtX?klOtS ialQmofappllmticm8f~poUales of baumnoe almultaneoualy Is6ued~olr In iem.
'Wo.qmte fro53 Wosda and Ptirasea, Vol. 36, Pomprnent xdltion, i?.: pj48
175 0. P. %OOkhal’t, &S&3 7 HOA.
2. The texa “pa-emlum” as used In Paragraph (a) of said statute, which provides for the oolleotlon OS 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~lon to be wrItten oa~e sir mc~~ths baais and vlthla va1I.d regulation of the Baaw, will wt ~fhe z+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 l as4tts of not- less th8A &WOAty ThousaAa Bollars.
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