### THE ATTORNEY GENERAL
OFTEXAS

Honorable George B. Butler, Chairman Board of Insurance Commissioners Austin, Texas

Dear Sir: OpinionNo. O-7004

Re: Interpretationof Set, 2, of Art, 5068-3,Vernon'sAnnotated Civil Statutes.

We have received your requests for our opinion on the hereinabove captioned. matter, and we quote fromyour first request as follows:

"Underthe provisions of Article 5068-3, Section 2, after the mortuary funds of the assessment associationhave become the property of the corporationreinsuring the membershfp of such association,may such fundsbe lawfullydisbursed by the reinsuring corporation for all of the followingpurposes:
"10 for payment of valid claims outstanding and arising thereafter from policies Issuedby the legal reserve company to the members of the assessmentassociatfon,
"2o to set up the legal reaerve on new policies issuedby the legal reserve cornGang to the members of the assessment association,
"3D and to pay their actuarialportion of suchmortuary fund to members of such association who refuse to accept the new policies offered them, and who make request thereforwlthin sixty 

### (60)days from the date of reinaurance?
"Ifyour answer to the preceding inquiry is in the affirmative,may the Board of InsuranceCommissioners lawfully refuse ,to approve a proposedplan and agreement on the soleground that suchproposed, plan and agreement provides that themortuary funds belonging to the associationmay be disbursed for ail of the three purposes specified In the precedingHon. George B, Butler, page 2 O-7004

inquiry and compel said associationand reinsuring corporation to agree that the mortuary funds shall be alsbursea for only one or two and not all of such speciffedpurposes or for some other or dlfferent purposebefore the Board will give its approval as provided In said Statute."
Set, 2, Art, 5068-3,V,A.C.S., reads as follows:
"The sums of any mortuary fundsbelonging to such association shall thereafterbe effectually the property of such organizedand converted corporation or corporationrefnsuring themembership of such asaociatlon,but may be disbursed for payment of valla claims outstandingand arlslng thereafter from policies issuedby the legal reserve company to the members of the assessment associatbnunder the approved agreement; to set up the legal reserve on new policies issuedby the legal reserve company to the members of the assessment associationunder said agreement; and to pay their acturial portion of suchmortuary fund ,to

members of such associationwho refuse to accept the new policies offered them, and who make request thereforwithin sixty (601, days from the date of conversion or reinsurance.

ItwFl1 be observed that the provlsions of Section 2 are plafn and unambiguous and where a statute, civil or crimlnal, is expressed in plain and unambiguous languageand its meaning la clear and obvious, there Is no room for construction, Gaddy vs. First NationalBank, Beaumont, 28'3- S.W. 472; Sparks vs, State, 174 S.W. 3510

We therefore answer your first question in the afflrmative.

In connectionwith your second question,we call your attention to the case of the BoaPa of InsuranceCommiasionera of Texas vs, Guardian Life I&. Co. of Texas, et al, 180 S.W. (2d) 906,wherein the Supreme Court of Texas said:

"Articles4688 and 4744 are the only ones pertinent to the queatfon in Issue and unless they conferupon the board the authority to issue the above order it must be conceded that no such authority exists. The board can exercise only such authority as is conferredupon it by law in clear and unmistakable terms and the samewill not be construed as being conferredby implication.-_ -

Hon. George B. Butler, page 3 O-7004

Humble 011 & Ref-LningCo. v. Rallroad Commission of Texas, Tex, Sup., 128 S.W. 2d 9; Commercial Standard Ins. Co. v. Board of Insur. Comm'rs of Texas, Tex. Civ.App,, 34 S.W. 2a 343, writ refused."

We may apply the above statement of the court to the instant case in the followingmanner: Section 2 oft Art, 5068-3 Is the only one pertinent to the question in issue and unless it confersupon the board the authority to issue the above order it must be conceded that no such authority exists. Your request plainly states that the "proposedplan and agreement provides that the mortuary funds belonging to the association may be disbursed for all of the three purposes", as provided in Set, 2, supra, and you are desirous of knowingwhether the Board of Insurance Commissionerscan lawfullyrefuse~'to approve the proposed plan because said board is Insisting that the reinsurance corporation agree that the mortuary fundswill only, be disbursed for one or two of the above enumeratedpurposes, OP for some other or different purpose. The law Iswell settled that the Board of Insurance Commissioners I'can exercise only such authority as is conferredupon it by law in clear and unmistakable terms and the aame will not be construed as being conferredby implication." We can find no authority for the InsuranceBoard to compel the reinsuring corporation to agree that the mortuary fundsbelonging to the associationwill only be disbursed for one or two of the purposes enumerated in Sec. 2, or for some other or different purpose, and in view of the foregoing authoritfeayour second question fs answered In the negatfve,

In view of our answers to your Inquiries in the first opfnion request,we do not deem it necessary to answer your secondrequest.
Yours very truly,

ATTORNEYGENERAL OF TEXAS
By s/J.C.Davis, Jr. J.C.Davis, Jr, Assistant

JCD:LJ:wc
APPROVEDDEC, 20, 1945 s/Grover Sellers

Approved Oprnion CommitteeBy s/%/B Chairman