OFFICE OF THE ATTORNEYGENERAL OF **TEXAS** AUSTIN

Honorable D. B. Barrow' Chief Eramiwr and Chlef Clerk mrd 0r 1n8uran4e aolnal88ion4r8 Austin, Texas

Dear Sir:

ph appears in Seotion 9 by the 46th X~gidatare, 4 oQexat~one OSmutual *allems~clatlo~ tn Texee. 4of the osrtlfioate mu4t be statea in& mob portionerof the by-l.W6 ion a4 umy aifeat the iaauranoe artierrin any mstsrlel way1 and 4m4ndment4 to the by-lawn whloh tight atfeat 8ua)h right4 of n~~mbersmust forthwith **ba** mailed by first-olaes mail to eaoh oertlfiaslteholder 4ffected. In 4480 of acsntroresaytheburden of **proof** shall be oa th4 aonpany toprOYe the aaandmeritwas mailed to th4membrr. Peaahoertlfioate 

### mat provide that ft eh4ll ba inoontsrthble. atte3!

/XOU. D. ‘i;. Earrow, page I!

havlnfiiieenin for04 during the llletlme of the ineured for a period of two years from date of Issue. except fornon-payment of eseesmwnte~ provided, however. any araoaletlon may iseue a certificate providing 4benefit leea then the mxlmum benefit asmee in the iecb of the oertlfiocte in o&se of death of themember byhis own h-a while ehne or insane. It shall imio ~roribe that in 06184the 4.~4of the insured.la &esstated, the amount of **fkranoe** ehall be that which the premium aotually paid would puroharle at the oorreot age, baaed on rate@ in for04 at the time of thedeath of the lnrured. No aertifiohte issuea by such association, nor any application 

### for the certlr5,ohteshall contain language 

### orbe in suoh tone 48 to mislead the appliocmt 

### or thepolioyholaee as to the type of Insuranoe afforded.
We have',underllnedthe portion oftt&4 whlah we are partioularlp oonoarn4d. “~111 you plnaes ailriseif, under this the lau, amutual aassaament ineuranoe _. 

### ,-

paragraph with
provision of almoo

### lat1on __._ may 14eue a polioy provlQing ior abemrlt 1088 thpn the nmxhwi benerit in 0484 of death rromn&litary or naval service in time ofwar, or in aa8e 0r death while ri‘diogin an airplane, euuh dsath **ooourring** after two gsars rrom date OS issue.* Yi;uhave eorrsatly quoted the pertinent provisions of Seotion 9 of Senato Bill 135, 45th Leglelature of Texas, and cod.iriedee Section Y ofArticle 5058-1, %ernon*8 hotat Texas Civil Stetutee. Such provlelone are applicable to ..zutual

aseesement'lnsur~~cs arsoolatlone. iire laauraiicaaompenle4 organ$zed and operating under

.chapter 3, Titie 78, Reviee& Civil StetuZee, mey **plaos ’** **exoep** tlone ir.their poliolee ror **ViOlctiOEs** or conditions or th4 polioy relating tonaval end mliltarp services In time ofwar. see Seotlbn 3 ofJWiicle 4732, Vsknon'a tLrsiotate6 Texas Clvll Statutes, which raaL9 8.6follower

.?Thetthe policy, or pollay an8 appllcatloa, shall constitute t$e entire oontraot between the partlee snE ekal.1be lrcontestable not later tfxmBan. D. B. Barror;,page 5 

# I i.

two years iron Its data, except for nonpaymnt

of predinia; snd v&lch provision my or may not, at the option of the company, **contain ac**  **exception ror**  **tiolations of**  **the conditions**  **of the**  **policy** relating tonmal szibnillltaryservicm Id tlze of war.' Iiowever,Texas court4have repeatedly held that mutual aesesstmnt lifelneurance oorponations are governed only by the statutes pirtloularly applioabls to them as such and that the ~4n4ral~insuranar laws rrlatfre to life insurance oomp4nl44 0rganha under Chapter 3, Tltle 76, Revised Ciril Statutes, 4x-4 inepplloable to **mtual a44484xent**  iii4 inauranoe **aompani40.** Se4 the follo~lng oases: Banker8* it;:& Loan Asa'n Y. Bond, 112sS,W.(g$] Bankers' Life k Loon &ia'n v. Chase, ll4 8. if.

(aI) 974 General Li&I~JlNl~44 co. v. Potter, l.24f. 'x.

The oourts of'Texas havs.slso bsld that tutual a88e44mnt life .In4urano4companiesmay plaoa reaeonebl4 Umltatlonr on their liabilitle4 in their po1i.ci421 Jworided mulw are not prg3ee the tollming 44844: hlblted by otatute anpliaablr to them. Imperinl Life 1~4uro~c4 CorapanyY. Thornton, 1SS

a. E. (2d) 298 Emkera* **iire** k Loan Asstn v. **Chase,** 114 3. 3.

-(24) 374 Benkern' Llte SCLoan ABB'~ Y. Don&, 11s S. u.

(Zd) 1001 Clearly section 3 of -4rtiale4792, V?rnon'a Annotated Civil **Stctutes; mpra,**  applicable to life lnsur4nc4 oorppmi44 generally, has no application tomutual ae4essment liie,in4Ur41144 eonipanlas. $4 must, therefore, look to theprovialons of Section 9 of Senate Bill 135, supra, for our,adswer to thi8 qU44tiOA, 44we hnve been unable t@ find any othqr provieion of law appllaabls tomutiialasee44,mnt life insuranOe companies and applicable to th4 question baiore ~4, other than Seation 8, supre.

**It i8**  **CUT** OpiAiOA that S4OtiOA 0 Of s6IlRt4Bill Ii%, supra, 14'al44r and unembiguouo.

## 2%&

I BOA. D. B. Barrow, peg4 4

It IS our opilllon that raid section olserly provldee that the oertlfioato or polloy of insurance muat provide that seII;d Skall be iAOOAt4fJtabl4,after **having** been iA for04 for two years, eroept fornonpayment of asassamente~ thie 1s limited oniy by the providon relative to suicides while sane or iA44A4, 4Ad by the provIa relative tom.l.8-8tatem4At of ag4, eta. hi6 84OtiOA **daee** not OOAtaiA 4ny prOYiS0 relative to the death of the insured duriAg war, military or naval eervico or a* a result of airplane hazard e404s to 4xoept &d ri8ks from the lAooAtret4bility feature of the poliay **after** the polioy has been.iA for04 for two yearr. The statute ia plain, and vr,fJaAnot read ouoh pro~ision8 into it.
You are,~tbsrcforr,rsspeotfully advi-44tlthat it 18 the 

### opinion of thl8 Department th4tyour pu4sti4n rhould. b4.4Aawered in the mgative, and it Is ao enswkred. **Yours** 

### very truly **ATTORNEY.**

GElW3AL OF TEXAS.

ATTO- GENERAL .
wnm