Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
S&rah 29, 1939 ITOn. Ekrt Ford, kdminiatrator Liguor Ccntrcl RORl-d
6ustin, Texas
Liquor ooatrd1 uly 1lmltat.tion en fl8 02 Taxa@ a8 bond8 thay sotild Liqlior aontror on the abom atat- 8 Bapartmant. loi theTexasLIquQr thlsAet&all beg 1 not oansal amy surety bond etp uompaay shall bats paid and iull sll‘@ ita liablllty upon the St&#k%s the dats of #aId . Thaw heldem of all pslnita. QX- 8 and wtab and bear retailers, aball be qaqufrad to make bonds in aams of not le6a than One Tbouaand Dollars ($1,000) (IX- Thousend Dollars (#25,000). oeedfng Twenty-Five ~The Board 3.n 1t.a~ dieoration may fir the amoant of bond wbiah shall bo mqtilre&for #oh olasa of psrmitte6a. All bond8 requlnd of per- mittese shall. ba payable to the Stata of Tax48 *2 %I% Ford , i!aroh 29, 1939, ape 2 son. the arpllnant
conditioned that so lone. GS na wJ.11 r,ot vio- holds such pemlt unrevoked late any of the laws of t!ils State ralatlve to the traffl.o in, transportation, sale, or ds- livery of liquor or any of the valid rules, or regulations of the i5oorG, and ir. the ease of suah pemittess as are regtiired to account for taxes and fees t!:et suoh pemittees will account for any pay all permit fess and tax48 14vl4d by thla Aat. All bonds raqulred or pemitteee shall be payable in Travla Coanty, Texas. In all ln4taho48 where other perml~~ 4r4 raquirad, lnoidantal to the operation ot a buslnear for whiah 4 basla pennit is pro- oured, tha Board may in its disore~ion aoaept on4 bond to mpport all suoh penalts~ in ruob amounts a8 it may requ%re..~
Art1014 $ClS, Revlsad Civil Ststutas, prorids among other thin@:
"(0) Thin kinda of lneuranae'to bs ar- faoted, whioh kinds oi fnsuranoe may be as r0ii0ns :
1. Irka lnuuranoe, rhioh tam shell be aonstmad to Inelude tornado, hall, oMtp and flaatsr luauranoe.
2. Autonoblla immranoe, whioh term @hall be oonatruad to include Sire, thsft, tram-. portatlen property damaga, oollision llab%llty d and torna o lnsuranoa.
9. Llablllty lnsuranoe.
4. Warlns insuranoe.
5. Aocidsnt and health insuranae.
6; Burglary and plate glass insuranea, I. Fidelity and surety bonda lnsuranoe, 8. Any other kinds of Inemanoe not above speoltled, tha making or whioh is not othemlse utilawful -in this State, sxospt life lnsnranae.*
Ron. Bert Ford, Zaroh 29, 1939, Page 3 5017a, Revlscd Civil Statutes, reads aa follone:
"The underwi-iters at a Lloyd's shall not aswme nor write lnsuranoe obligations in Texaa nor for citizens of Texas, nor covering property locited in Texas which prodace a net premiia income ii: exoess of ten times the net assets or such underwriters, and if at any time ths liabilities aesumad upon auoh insursnoe shall produoe a net prealum inoon greatar than ten times auah net asaeta than no further lnmuranoo obligation ahall be assamad nntll the net aaa4ta have be4n inoreand so 4s to admit of addltlonal inauranoa 4bllg&lona uhlah will p@3gos a prs- miuu inoome not gmater than tan tl&& suoh net asset; provided that whan th4 net azaeta at a Lloydta.khall equal the am of mqnay rhioh dll be raqulred of a atook imauranae aompany doing the 44~4 oharabtsrs~of bualneas In Texas,.then his limihtiona up4n tha rolnma of bnslnaas to ba wrlttsn.sh4l.l notrpply rtwther; provl.dad ttu- thar that if in the Judgment and dlsaret~on of the Board of Insuranoe Commissioners suoh under- writers (at) a Lloyd.8 ah411 have atfeoted 'r4ln- suranoa, or other a4ntraots, wlth responalble and solvent lnsursnoe oarrlars reduolng the nat linaa at risk oarried by auoh underwriters at e Lloyd's 80 that their aperations 4r4 safe and their solvenoy not in danger, than suoh Board aey ranaw or extand the lioenses of suoh undar- writers, lrrsspeotive of this limitation.4
Artiola 5017e, aupra, llmlts tha amount of In- aur4no4 obligations that an undaruriter of a Lloyd*% ah411 aosuma a'right in T4xas for 4itlzens of'T4xaa -_ ~_. or oorerlng 3roparty looated in Tares whloh produo a nat pramium 3.noonrs in ex4asa of tan tLmes ths net aa- sets or suoh undsrwritara. This statute, by Its Ian- guag4 or terms, does not'llmlt tha amount of bondo that such undsrwriters msy write nor does it imply euoh ll- lactations by its provisions. Horever, under this 8ta- tuta suah undsrwrltars have th4 right to reinsure with responsibl4 and aolvant insuranoe oarrlere, rsduolng the net lines at risk oarrl4d by suoh undanrrltera *4 fion. ?krt Ford, Lfarah 29, 19S9, Page 4 80 that their operetiona are sere end their solvency in danger; provided, that 5f in the judgment and disaretlon of the Roard of Insuranoe Comlssi~~ners suah reinsurence 18 neoessery. ,A8 thSe applies to iRSUP enoe obli@.lms WC csnnot oonatrue this statute as applying to bonds that such underwriters may write wiiioh are required by Section 16, 1 ci the Texas Liquor Contr4 Aot.
You are sespeatfully advised thtit it is the opinion of this Departant that oompenlea organized mdar Chapter 19 of the Ituuranae Law8 of Texna are qunlified to alto bond8 nquired under the Liquor Control Aot and that there 1s no l%mltatlan.on the .-Lawyers Lloyd8 of Toxw" as to the amount of bonds they oan write for the Texas Liquor Control Board.
Trwtiagthat the foregoing anewers your in- quiry, we remala
vary truly your6 ATTOBBBY OF =X-M