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 OS mutual *allems~clatlo~ tn Texee. 

4 of the osrtlfioate mu4t be statea 

in& mob portioner of the by-l.W6 

ion a4 umy aifeat the iaauranoe 

artierr in any mstsrlel way1 and 

4m4ndment4 to the by-lawn whloh tight atfeat 8ua)h 

right4 of n~~mbers must forthwith ba mailed by 

first-olaes mail to eaoh oertlfiaslte holder 4ffected. In 4480 of acsntroresay theburden of 

proof shall be oa th4 aonpany to prOYe the aaandmerit was mailed to th4 membrr. Peaah oertlfioate 

mat provide that ft eh4ll ba inoontsrthble. atte3! 

/ 
XOU. D. ‘i;. Earrow, page I! 

havlnfi iieen in for04 during the llletlme of 

the ineured for a period of two years from date 

of Issue. except for non-payment of eseesmwnte~ 

provided, however. any araoaletlon may iseue a 

certificate providing 4 benefit leea then the 

mxlmum benefit asmee in the iecb of the oertlfiocte in o&se of death of the member by his 

own h-a while ehne or insane. It shall imio 

~roribe that in 06184 the 4.~4 of 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 the death of the lnrured. No aertifiohte issuea by such association, nor any application for the certlr5,ohte shall contain language 

or be in suoh tone 48 to mislead the appliocmt 

or the polioyholaee as to the type of Insuranoe 

afforded. 

We have',underllned the portion oft t&4 

whlah we are partioularlp oonoarn4d. 

“~111 you plnaes ailrise if, under this 

the lau, a mutual aassaament ineuranoe _. 

,- 

paragraph with 

provision of 

almoo lat1on __._ 

may 14eue a polioy provlQing ior a bemrlt 1088 thpn 

the nmxhwi benerit in 0484 of death rrom n&litary 

or naval service in time of war, or in aa8e 0r death 

while ri‘diog in an airplane, euuh dsath ooourring 

after two gsars rrom date OS issue.* 

Yi;u have eorrsatly quoted the pertinent provisions of Seotion 9 of Senato Bill 135, 45th Leglelature of Texas, and 

cod.iried ee Section Y of Article 5058-1, %ernon*8 hotat 

Texas Civil Stetutee. Such provlelone are applicable to 

..zutual aseesement'lnsur~~cs arsoolatlone. 

iire laauraiica aompenle4 organ$zed and operating under 

. chapter 3, Titie 78, Reviee& Civil StetuZee, mey plaos’exoeptlone ir. their poliolee ror ViOlctiOEs or conditions or th4 

polioy relating to naval end mliltarp services In time of war. 

see Seotlbn 3 of JWiicle 4732, Vsknon'a tLrsiotate6 Texas Clvll 

Statutes, which raaL9 8.6 follower 

.?Thet the policy, or pollay an8 appllcatloa, 

shall constitute t$e entire oontraot between the 

partlee snE ekal.1 be lrcontestable not later tfxm 
Ban. 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 to nmal szib nillltary servicm Id tlze of 

war.' 

Iiowever, Texas court4 have repeatedly held that mutual 

aesesstmnt life lneurance 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, 112s S,W.(g$] 

Bankers' Life k Loon &ia'n v. Chase, ll4 8. if. 

(aI) 974 

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

The oourts of' Texas havs.slso bsld that tutual a88e44mnt 

life .In4urano4 companies may plaoa reaeonebl4 Umltatlonr on 

their liabilitle4 in their po1i.ci421 Jworided mulw are not prghlblted by otatute anpliaablr to them. 3ee the tollming 44844: 

Imperinl Life 1~4uro~c4 Corapany Y. Thornton, 1SS 

a. E. (2d) 298 

Emkera* iire k Loan Asstn v. Chase, 114 3. 3. 

- (24) 374 

Benkern' Llte SC Loan ABB'~ Y. Don&, 11s S. u. 

(Zd) 1001 

Clearly section 3 of -4rtiale 4792, V?rnon'a Annotated 

Civil Stctutes; mpra, applicable to life lnsur4nc4 oorppmi44 

generally, has no application to mutual ae4essment liie,in4Ur41144 eonipanlas. $4 must, therefore, look to the provialons 

of Section 9 of Senate Bill 135, supra, for our,adswer to 

thi8 qU44tiOA, 44 we hnve been unable t@ find any othqr provieion of law appllaabls to mutiial asee44,mnt life insuranOe 

companies and applicable to th4 question baiore ~4, other 

than Seation 8, supre. 

It i8 CUT OpiAiOA that S4OtiOA 0 Of s6IlRt4 Bill 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 for nonpayment of asassamente~ thie 1s 

limited oniy by the providon relative to suicides while 

sane or iA44A4, 4Ad by the provIa relative to m.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 e40 4s 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,fJaA not read ouoh pro~ision8 

into it. 

You are, ~tbsrcforr, rsspeotfully advi-44tl that it 18 

the opinion of thl8 Department th4t your pu4sti4n rhould. 

b4.4Aawered in the mgative, and it Is ao enswkred. 

Yours very truly 

ATTORNEY. GElW3AL OF TEXAS. 

ATTO- GENERAL . 

wnm