THE ATTORNEYGENERAL 

OFTEXAS 

GERALD C. MANN 

-N ATroRNFzY (fENERAL 

Honorable' Charleg 

State Treasurer 

Austin, Texas 

Lockhart 

Opinion No. O-3855 

Re: Would the'3tat~e Treasurer be 

reqUlred"or permiti%% 'under 

Texas Statutes' to accept the 

describe8 deposit by the Republic National 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: 

"We hand you herewith a letter which 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 

make with the State Treasurer of Texas in order to 

secure a permit to transact business In the State 

of Illinois. 

"We would 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 permitted under Texas. Statutes 

to accept such deposit for the purpose as above set 

forth. 

"You will note that this letter refers to an "' 

opinion previously rendered by the Attorney General's 

Department under date of December 1, 1937. 

"For your Information this opinion was written 

by Honorable Richard Brooks, Assistant Attorney' 

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 : 

"The Republic National Life Insurance Company, 

organized under the laws of this State In accordance with the prbvisions of Chapter 3, Title,~78, 

Revised ClVll Statutea of Texas of 1925,“iS ‘applyifig for a certificate of tithorlty to transact business 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 

supervising authority of its home state $100,000 

in securittes for the benefit and security of all 

policy obligatLons of the Company. 

"The Company desires to deposit with 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 about which the 

Attorney General rendered an opinion to you dated 

December 1, 1937, relative to the Republic Insurance 

Company. 

"We would appreciate 1t very much Lf you would 

give this matter your most immediate attention, and 

advise us whether or not it is within 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, construes Article 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, specifically proHdes, in part: 

"Only companies organized and doing business 

under the provisions of this Chapter shall be subject to its provisions. * * * *.'I 

Under 'the facts stated above, the Republic National Life 

Insurance Company was organized under the laws of this state in 

accordance with 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 question under consideration. 
. -_ 

Honorable Charleg Lockhart, page 3 O-3855 

Article 4739j Vernon’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, deposit with the State Treasurer securit’ies equal to 

the amount of its capital stock, and may, at Its 

oet Ion, withdraw the same or any part thereof, first 

having deposited in the treasury In lieu thereof 

oth,er securities equal in value to those withdrawn. 

Any such securities, before being so originally deposited or substituted, shall ‘be approved-by the Commissioner. When any such deposit is’ made, the TreaSurer shall execute to the company making the deposit 

a receipt therefor, giving such description to such 

securities as 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 securities and 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 thereafter be 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 property belonging to such companies 

shall be at the home office of such company.” 

It will be noted that Article 4739, supra, authorizes 

any company named therein, at its option, to deposit with the 

State Treasurer securities equal to the amount of its capital 

stock. This statute further provides for the withdrawal of 

said securities under certain circumstances and conditions mentioned therein and the substitution of other securiti,es in lieu 

of the original securities deposited, further providing, that 

any such securities, before being so originally deposited or 

substituted, shall be approved by the Board of Insurance Commlssi oners . Under the above mentioned statute, such deposit when 

made by any company shall thereafter be maintained as long as 

said company shall have outstanding any liability to its policyholders. 

It is clear from the above mentioned statute that any 

company mentioned therein is authorized to make a deposit with 
Honorable Charley Lockhart, page 4 O-3855 

the State Treasurer'under the proVlslons'there6f and that the 

State Treasurer is authorlzed~to accept and receive said deposit 

and shall execute to the company making-the deposit a'receipt 

therefor, giving such description to such Securities as will 

ldentlfy the same.and such company shall h&&the right to advertise such fact; nor print a copy of the treaiur&'s' receipt on 

th6 policies it may issue. We think that the'above MntLotied 

cbmpany has the' right to make 'the above'tientioned aeposit 'providea said deposit does 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 other words;~we think that 

the deposit can be tide under Article 4739, supra, if all the 

tiondltions of said' statut6 are complied with regardless of the 

tiotiVe,of the dompany which prompts the tender and deposit. Of 

boiwse, when said depo~slt 1s mad,e'it is 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/ Ardell Willlisnis 

AMell"Willlams 

Assistant 

APPROVED 3EP 2, 1941 

s/hover Sellers 

FIRST A3313TANT 

ATTORNEYGENERAL 

This Opinion Considered And Approved In Limited Conference