Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Ii~rablo Walter C. laodwerd,
E0erd In6cranoa CdPlairsionero
Austin, %x44
dssortbd hate b.oea ed in OS r4ttlu4nt nation OS t&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 prdum dll b4 oh end balma la alae *pad the tirst mature one 5klXa4at5, moBth from the s?Swttve date of the polioy. It vat elm faua4 tht UaQald n0t4 lnatall-
IuntE mm8in la al4 l a54t6 o r th* &XOben&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- on conoel4d p4lloIeu to treat
oarned pmmlumn th4n III returned Qres.iums by ruanlng onaorro- Pients to the polloI4s, nhioh states lc rubstance thst the premium shuuld hare b44n th4 amount
l otlmlly 001180t.u. This pmctIo4 Iran ths 4r- r404IpW ra0t 0s ~au0in.g rrori *groec premium wbleh Oooupstlcn Pax 0omQutatIons we ma44 4n6 reduoee *earned pr4mItuzs* rhloh are us4d In r4r ;corkta4n*a Commpon-
adoulating clsim llsblllty utlon and fubllc Liability loare by the D!bedule *P' ronruls. -It 18 the aont4ntlon of the ShahaM that reoolred no r l arns4 it col-
4 pr4mlum is n*Ither 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 l coeptr either oarb or netes
or both in eettlnmeat af the QrdUB an4 IUrnishro In the polioj; and cornrage ~rorldml tirelOh- f&ilUrO t4 plk0 OOli~OtiOn 0s l LLOIA artW h6 RUOh 0079ZVl@ 4008 aOf CMlX'Y4 t0 X'44UO4 'IJTOU gnwmlum r444iptd. 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 in of II not@ aQo4pkd thenof 6448 sot redrroe It8 prsniua earn- fiaiaeat
-Twcj qusstlcns arlw cut cf r4eIt44 grao- Irirat, it thin 04partnwnt: tices. naaa4 aQvIo0 '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 l 8eaptcl4 In aettl4tront of the pranltm aooount. (Thoa4 n&48 are oarrled 66 sdmittmd l cseet4.)
wmc4n4, IS, In your opinion, greafuru Mate bun aorned uhen oovcrre@ QrovId4d In the Qcltoy has boon Surnishrd aho ZeIJ. to nati ~mtredo h4tO ~Jfdtkiltl." prbBiUB
780 ,.i Ifonorablle Xalter C. Boodwerd, P8ge 5
14 g0ur rirrt question 83~ refer to krtlcle 9064, statute8 4: Texas. Fa essum Title ?0, ~evI60d ~lrll
YOU have 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 s6eocI6tlone, within bewit 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- shall pay an 4auualtex upon suoh suranoe carriers receipts a6 roil4w8t ehall mvm t4f 4r gross pr4miam three ond trentpfirs on hundredths (3.25) .I?& out, that en? suoh Imumno4 oarrl4rs 6oing two QrOlided, (al or aor kinds of lnwrei3oe burIn458 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 tot.61 gors amount of Q~~BI~BB received on 480h and everr kind of 1nsursao4 or risk writton, 4xoept nler ror premlrme m4ivea from other 1104nasd 001~ r4lmurnnoe, lsrt~ return pr0mlumm and dir 44nd8 paid im but th4re shall be n@ 444uotfon far
polioyholderr, pr4mIurPa paid for rrlnsuramm. o4ipt8, as above defined, The grams premlum Fe-
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 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, iSiO6rpoXVitEd oity Or town 0r this r:tate, in thl6 State in whleh by law suob or other prcperty *4 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 thi8 hrtlole.
The taxes aforesaid shall oonetftutr 11 taxes coilaotlble under the laws of this State against atiy suoh lnauranoe oarriers, exoept the main- 7 tenanoe tax provided for uader rrtfole 4908 and the
tax on promlIMp reoelred under Aorkmen*r Qoatpenaatlon ae prorldad for Ihsuranae policies, 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, 6ession; and nc other tax Re&ular ehall be lerlod or oolleoted from any lnauranao oar- rler by any oouaty, oity, or town, but this not be construed law e&all 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, ahall be exempt from provlaions of ah4 not for profit, 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- ii any emoh oompang shall have an amount equal ever, to one-htdf of the gross amouxkt of assessments, 6~08, prWdAUM, *5 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 l fo r ouid an amount equal to the pou8 9auwnt of muh reoaiptr for the prroedlng year, a9 8han by raid 8wora rtato- then the annwl tax of 8uoh oompmy 8hal2 be one- rent, lmli or one per oent of it9 uld reoe1ptm.w
Art1018 5032, Vernon*8 AMOtataU Civil SthtUt98, rud8 in part a9 r0ii0w8:
*Any o9rtI~Io9t9 or suthorlt; ahall oontlnuo in atroot until th9 mu oertifloutm of authority bo l8- wed 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 Said mxohango8 8h9ll pa7 a tu or thrw and one- faot.
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 maendmd by HOUIJO Bill No. 6, Ghaptor 4, AOtS or the Third Called 808- 498, EN&J* ?%O, ArtSal. 199116, a8 am89494 Aot8 alon, Torty-fourth 1989, yorty-tlith Lo Xou8e 1#U~ Ho. Ul, 890- tlon 1, ae -9d k6t9 19219, llortpmlxth L9gi9latw9, HQUW Bill 190. SW, aubjoot to r9duotlcPI b7 %nvertmant In TeXaU 9eourltlss 99 therein protiaod; and exalumga9 wrftiw workuoo~9~00mpenuatfon rb9U p9y a lnrtmnce tax or one-hrU (9) of one ( 1) per cent the work- premlumm ooll9oted aider the prorl- men*9 ooapenutlon 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- 19R6, a8 aa9nded Aota 1989, Forty- fourth I,egl918ture, tiltth Legislature, 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] *6 :.Y Page 6 honorable Walter C. Woodward
"Provided furth@C, that ah odditio8al tax of 1) per omnt or suoh lesser one-fifth (l/a) one Conuaiealonsr9 say amount es the Board of nauranoa . __ . .- 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 *The gro99 amount iat There ia no U- of premium9 reoaited bigulty In the state.'
in 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.nguags 19 plain and unambiguow, there is no room ror oon9tru9tion. It 19 never admissible resort to 8ubtlm limit or extend mea90 and forced oonetruotlons.to 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 It just simply suran9 that the entire mum re- mtntute. 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 *Gross premium reoeipt9 are snaermtood theme words: 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 Theretore, takcing the Zanguiig9 oi the entire state. provision into eonsidsration, it means, as stated be- *7 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 prdume or areee6mentr parsed or ourrentlp due, OY to due in ruwe. (Couoh on In- rall 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, v. United the'teet 16 the intention oi the p6rtiee. (Dunoan 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 a payment 0r the pnm- ;hz premium note lneteeid or oash aSfoot (Amlceble Llte fn6. co. v. mite, 38 s. 7;. (2Q) 660)
In vlaw the forego authorities, you ere teeQeot- ruiy adViSed thet it is opin on of this Departanent "r:
the term "grooe premium reaclpte* 7004, ~pre, nenn6 end inaludee all premiums roaeived whether es used In krtiolee bOS2 and 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 thnt uafler the ieots stated, the not06 In pemium. Xe believe erfeut a peynsnt the pre5lume. gueetfon
,/’ In er16wer to your eeaond question, you are rurther ed- ..keaU that lt is our opinion that the pre6&upo(I h6ae 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 tha r0r06cag fully enenerm your in-
Tmasting quiry, vea are
Yours very truly APPROVEljNOV 20; 1940
, ATTORHEY GENERAL OP TEXAS