## THE ATTORNEYGENERAL
OFTEXAS

GERALDC. MANN -N ATroRNFzY (fENERAL

Honorable'Charleg State Treasurer Austin, Texas Lockhart

OpinionNo. O-3855 Re: Would the'3tat~e Treasurerbe reqUlred"orpermiti%% 'under Texas Statutes'

to accept the describe8 deposit by the RepublicNational Life Insurance Company? Att In: Mr. Chas. 0. Rice

Dear Sir:

Your letter of August 5, 1941, requesting an opinion-of this department,upon the above stated question, has been received.

We quote from your letter as follows:

"Wehand you herewith a letterwhich this-department'received.today from Mr. George Van Fleet, Actuary of'Board' of Insurance Commissioners, in regard to a certain type of deposit which the Republic Nati,onal

Lffe Insurance Company desires to makewith the State Treasurer of Texas in order to secure a permit to transactbusiness In the State of Illinois.

"Wewould appreciate very~ much an opinion from youin regard"to this matter at your very earliest corivenience, as to whether or not the State Treasurer would be required or permittedunder Texas.Statutes to accept such deposit for the purpose as above set forth.

"Youwill note that this letter refers to an "' opinion previously rendered by the Attorney General's Departmentunder date ofDecember 1, 1937.

"Foryour Informationthis opinionwas written by Honorable Richard Brooks, AssistantAttorney' General.

under Attorney General WillLam @Craw, and
as we have some extra copies of this opinion,we are enclosing one of them herewlth."Honorable Charley Lockhart, page 2 O-3855

The letter from Mr. George Van Fleet, Actuary of the Board of Insurance Commissioners,referred to in your inquiry, reads as follows:

"TheRepublic National Life InsuranceCompany, organizedunder the laws of this State In accordance with the prbvisions of Chapter 3, Title,~78, Revised ClVll Statutea of Texas of 1925,“iS ‘applyifigfor a certificate of tithorltyto transactbusiness In the State of Illinois. Section 111 of the Illinois Insurance Code requires that in order for the Republic National Life Insurance Company to be authorized to transact buslness in the State of Illinois it must have on deposit with the proper supervisingauthority of its home state $100,000 in securittes for the benefit and security of all policy obligatLons of the Company.
"The Companydesires to depositwith the State Treasurer of the State of Texas $100,000 in s&curlties in order that it may be authorized to transact business in the State of Illlnols. It appears to this Department that the matter concerned In this
case Is very similar to the matter aboutwhich the Attorney General rendered an opinion to you dated December 1, 1937, relative to the Republic Insurance Company.

"Wewould appreciate 1t very much Lf you would give this matter your most immediateattention, and advise us whether or not it iswithin the authority of the State Treasurer of this State to accept the deposit referred to."
The opinion of this department, referred,to in the letters quoted above, construesArticle 4993, Chapter 18, Tltle,78, Vernon's Annotated Civil Statutes. Itwill be noted that such chapter Is applicable to general casualty companies and that Article 4993, supra, specificallyproHdes, in part:

"Only companies organized and doing business under the provisions of this Chapter shallbe subject to its provisions. * * * *.'I
Under 'thefacts stated above, the Republic National Life Insurance Companywas organizedunder the laws of this state in accordancewith the provisions of Chapter 3, Title 78, Vernon's Annotated Civil Statutes. Therefore,we do not think that.' Article 4993, supra, and the above mentioned oplnl.on have any application to the questionunder consideration.. -_

Honorable Charleg Lockhart, page 

## 3 O-3855

Article 4739jVernon’s Annotated Civil Statutes, provides:
“Any life insurance company, accident insurance company, life and accident, heaIth and accident,“or life, health and accident insurance company, organized under the laws of this State, may at its option, depositwith the State Treasurer securit’ies equal to the amount of its capital stock, and may, at Its oetIon,withdraw the same or any part thereof, first having deposited in the treasury In lieu thereof oth,er securities equal in value to thosewithdrawn. Any such securities,before being so originallydeposited or substituted, shall ‘beapproved-by the Commissioner. When any such deposit is’ made, the TreaSurer shall execute to the companymaking the deposit
a receipt therefor,giving such description to such securitiesas will ldentlfy the same; and such company shall have the right to advertise such fact,
or print a copy of the treasurer’s receipt on the policies it’

may Issue; and the proper officers or agents of each Insurance company making such deposit shall be permitted,atall reasonable times; to examine’ such securitiesand to detach coupons therefrbm and to collect’ Interest thereon, under such reasonable~

rules,and regulations as may be prescribed by the Treasurer, and’the Commissioner. Such deposit when made by any company shall thereafterbe maintained’

as long as saLd company shall have outstanding any ll~abllltg

to Its policy holders. For the purpose of State, county, and municipal taxation, the situs of’ all personal propertybelonging to such companies shallbe at the home office of such company.”

Itwill be noted thatArticle 4739, supra, authorizes any companynamed therein, at its option, to deposit with the State Treasurer securitiesequal to the amount of its capital stock. This statute further provides for the withdrawal of said securitiesunder certain circumstancesand conditionsmentioned therein and the substitution of other securiti,es in lieu of the original securitiesdeposited, further providing, that any such securities,before being so originallydeposited or substituted, shallbe approved by the Board of InsuranceCommlssioners
. Under the above mentioned statute, such deposit when made by any company shall thereafterbe maintained as long as said company shall have outstandingany liability to its policyholders.

It is clear from the above mentioned statute that any companymentioned therein is authorized to make a depositwithHonorable Charley Lockhart, page 4 

## O-3855

the State Treasurer'under the proVlslons'there6fand that the State Treasurer is authorlzed~toaccept and receive said deposit and shall execute to the companymaking-the deposit a'receipt therefor,giving such description to such Securitiesas will ldentlfy the same.and such company shall h&&the right to advertise such fact;norprint a copy of the treaiur&'s' receipt on th6 policies it may issue. We think that the'aboveMntLotied cbmpany has the'

right to make 'theabove'tientioned aeposit 'providea said depositdoes nbt exceed the hapital stock bf said company,'

and, as above stated, the treasurer Is authorized to receive and accept the same. Whether or not thls"“deposit'fulfills or meets the requirements of the Illinols~l~w is a matter on which we express ho opinion. In otherwords;~we think that the deposit can be tide under Article 4739, supra, if all the tiondltions

of said'

statut6 are compliedwith regardless of the tiotiVe,of

the dompanywhich prompts the tender and deposit. Of boiwse,when said depo~slt1smad,e'itis subject to all the provisions of the above mentioned statute.

Trusttng that the foregoing fully answers your inquiry,
we are

AW:ob:wc Yours very turly

ATTORNEYGENERAL OF TEXAS

By s/ArdellWilllisnis AMell"Willlams Assistant

APPROVED 3EP 2, 1941 s/hover Sellers FIRST A3313TANT ATTORNEYGENERAL
This Opinion ConsideredAnd Approved In Limited Conference