Hotiorable George Van Fleet, Actuary 

Board of Insurance Commissioners 

Austin, Texas 

Dear Sir: Opinion No. O-2652 

Re: Article 4752, Ve6ndh% Aniibtated‘~ ~' 

Texas CidiI'Stdtutel '-~ LImited Capital 

Stock Compahies --tiriE:hljr or weekly . . .,~ 

Pr'emlums Plan - Single Premlum Plen. 

Your request for opinion has beeti~i%~I~~~~Md carefizllg considered by this department. We quote from your request 

as follows: 

uYour opinion iS respectfUlly &quested as 

to'wtiether Wnot a limited capital stoCk life, 

health afia acclaent insu~anc~'company;~organlied 

andoperating rn this State and subj'i3ct tb.th'e 

provisltiiis of AtitibX 4752 of our statutes; is 

authorized to issue a single premium policy. 

_ 

"I Bm-eficlosing 8 photostatic copy bf~such 

Kpolic~, ana we request your opinion about this 

matter. _, ,,~~ 

-'Article 4752, Vernon's Annotated Texas Civil Statutes 

reads as follows: ^ _. 

"Companies may b6 incorporatd. in'the maiiner' 

prescribea by this-.chapt& for the-'lticotiporbtloti 

of life, accid&nt and health~iiisurance compaiiies 

generallg,/which shall have~~.powep ~onlg to ttian@.~~ 

ikit btislness withlil this'state, atid'to ~w?l'ce'iiitiartince onl?T On the'weekly'br'mbtithls oti‘emiutis rrlⅈ 

and to-t&titie ti6 pblicg'protiisfng to.pay^'mor& than 

one thou's&fid~ 13611%~~ iKth&-ev&t 'Of d&at% 6f"the 

insiii-&i friim ii~tui%l'c~us6s, nbp tioi+e'th&nW-t*o thotisana doll&rs ins the'- ev'ent of. a&atK'of f&y. . 

tigFson Tr6m acc'ragfital. CaU'8es,~ which majr'issiie,' 

cdmb'iiiea'or'separ~tiily, Lffe, 'accia'ent“or-.health 

ltisi%rafic&~~poLZcl~s wfth not less ~th&i anon actii81. 

pald'up capU%l of twetity-fLve th6tisand'.dollars. 

All stich~cbmpanies '$hall'b‘e's~bj~dt'to till the ~~ 

laws regulating life insurance companies in this 
- . 

Bonorable George Van Fleet, page 2 o-2652 

State not Inconsistent wlth'the provisions of this 

article. Such companies shall not"be permitted 

to invest their assets in other than Texas Securlties as defined bg'the laws of thIs~State~regulating the Investments of life Insurance companies.' 

(Underscorlng ours) 

We thlnk'that the term ‘"weekly premiums plan" as used 

in Article 4752; siipra, means a-~planof insurance where 

prhmlilms are contracted to be paig eaEh week and that like- ~" 

wise a "monthly premlums plan rr means's planof insurance where 

premiums are contracted to be paid each month. ". 

Article 4752, supra, is clear and unambiguous: It is 

the-.oplnion of this department that limited-capital stocky insurance companies sunder Article 4752, supra, may write insurance only on the weekly ormonthly prem‘iums'plan. 'Insiirance~. 

written by a Iimited capital stock~compahg on an "annual premium plan" or a "single premium plan" or any plan otherthain'. 

the "weekly or monthly premiums plan", would-be Ln clear violation of Article 4752, supra. Your question is therefore 

answered in the negatlve. -. 

We have carefully examined the photostatic--copy-of a-.~. 

policy of Texas-'State Life Insurance Company of Dalles, Texas, 

a~ limited capital stock company subject to the provLsions'of 

Article 4752, supra, which you enclosed in-‘your letter, upon 

which pollcy'you desire our opinion. We call your attention 

to the following provisions of said policy: 

"This 'Walker Plan'.Slngle Premium Divifiend -' 

Policy' is issued at age-. vears in consideration of the application therefor, the execution 

and delivery of a Walker Plan Single Premium Note 

bearing six per cent per annum“lnthe amoiint~ of 

Dollars, calsulated 

on multiple-'monthly premium payments, and the 

payment in advance to'the Company of the first 

twelve months' interest thereon of 

Dollars. ..(Said sum being-'interest under this 

Walker Plan is not refundable,) 

"After this Policy has been in force.~one 

full year and the interestdue on the Walker 

Plan Single PremTum Note for the subsequently 

twelve months shall have been pa1.d and~on each 

anniversary'thereafter sudh~'.divldends and/or 

credits as shall have been apportioned by the 

Board of Directors to thlsPol'icy shall at the 

option of the Insured by (a) paid in cash, or 
Honorable Qeorge Van Fleet, page 3 0 -2652 

(b) used In reduction of Walker Plan--Single Premium Note, or (c) left with the Company--to 

aboumulate to'the-‘credit ol the policy atsuEh 

rate of interestas the Board of Directorsmay 

determine." WhLle this Policy Is In~for&e'an& 

,.~ .~, ~. before ~efeiiltifi'the~ paJrment'of.any~~interest 

due‘siMh.ahdui&latea diviaends~ may be~wlthdrawn 

in cash upon-'any annlversary'of the.pijllcy if 

nbtpald or applied beforehand, or-shall be 

payable~upon ldaturlty.of'this ~PoliCy 'to the. 

person entitled to receive'the proceeds. If 

iio option Is selected the dividends will be 

applLed under option (b). 

"All interest payments onthe' Walker Plari'~ 

Single Premium Note-'afterthe flrstare atwand 

payable monthly in advance at the Home Office 

of the"Company in theCIty df~DalIas, Texas, or. 

to's de^signated collector on-"or before aate'due; 

but ~ln any~case only‘% exchange for the Company's 

reheipt therefor, '"signeti by the Presldent;VlcePre5ldent,Jecretary,'Ass'Lstant~ Secretary or' 

Treasurerand countersIgned bysuch collec'tor; 

The"mod-e of interest payment may be ~changed'tb'~ 

tbree~months, six months or twelve months ih advance, but except as herein provlaea, the payment 

of any interest on the Walker Plan Single'PPemium 

Note'or installment thereof shall not maintain the 

PollCy in force beyond the date when the neistin-' 

terest payment or installment there of is payable. 

Any unpaid portion or installment of such interest 

payment on a Walker Plan Single-'Premium Note for 

the policy year during whLch death of the Insured 

occurs will be deducted from the sum payable under 

this policy. Upon default in payment of any interest on any indebtedness secured by this Policy due 

subsequent to the first' twelve months' interest 

hereuiider,'this Poli cg shall be~null and-void-'and 

all" payiatints forfeited to the Company except as 

herein provided." 

_- ..,- It is clearly apparent from a reading of the abode 

quot.s&portions of the policy~'that'Texas State Life InsuranBe,,. 

Companyis writing insurance upon a"'plan other than'the %eek- l~. 6r, mijiithlg~.prem~ums planq ,I.L It is therefore the~'bpiniofi-'of 

this-a~epartment that Texas Stete'Life~ Insurance"~Company hii's-‘~- 

noauthority to write insuran'ce upon the "Walker Single Premturn Payment Plan," as outlined in said policy. 
Ronorable George Van Fleet, page 4 o-2652 

Very truly yours 

ATTORNEY GENERAL OF TEXAS 

WJF:AW:wc 

,. 

APPROVED AUG 28,, 1g40 

s/Grover Sellers 

FIRST ASSISTANT 

ATTORNEYGENERAL 

By s/W% J. Famiirig 

Wni. J :'Fannlng 

Assistant 

Approved Opinion Committee By s/BWB Chairman