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Untitled Texas Attorney General Opinion
O-5706
| Tex. Att'y Gen. | Jul 2, 1943
|
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Case Information

*1 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 Rer Can common school dis- County Attorney tricts and, rural school dis- Jefferson County Beaumont, Texas

tricts purchase group life insurance for their employees under the provisions B~;i~;:6, Forty-eighth Legis- of House Attention: Mr. Earl Blaok, Assistant

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 ATTORNEY GENERAL OF TEXAS

/s/ Grover Sellers FIRST ASSISTANT

ATTORNEY GENFRAL By /s/ C. F. Gibson APPROVED: OPINION COMMITTEE C, F. Gibson, Assistant BY: BWB, CHAIFMAN

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Case Details

Case Name: Untitled Texas Attorney General Opinion
Court Name: Texas Attorney General Reports
Date Published: Jul 2, 1943
Docket Number: O-5706
Court Abbreviation: Tex. Att'y Gen.
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