OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

S&rah 29, 1939 

ITOn. Ekrt Ford, kdminiatrator 

Liguor Ccntrcl RORl-d 

6ustin, Texas 

Liquor ooatrd1 

uly 1lmltat.tion e

fl8 02 Taxa@ a8 

bond8 thay sotild 

Liqlior aontror 

on the abom atat8 Bapartmant. 

loi theTexasLIquQr 

thlsAet&all beg 

1 not oansal amy surety bond 

etp uompaay shall bats paid and 

iull sll‘@ ita liablllty upon 

the St&#k%s the dats of #aId 

. Thaw heldem of all pslnita. QXqaqufrad 

8 and wtab and bear retailers, aball 

be to make bonds in aams of not le6a 

than One Tbouaand Dollars ($1,000) and not (IXoeedfng Twenty-Five Thousend Dollars (#25,000). 

~The Board 3.n 1t.a~ dieoration may fir the 

amoant of bond wbiah shall bo mqtilre&for #oh 

olasa of psrmitte6a. All bond8 requlnd of permittese shall. ba payable to the Stata of Tax48 
son. %I% Ford , i!aroh 29, 1939, 

conditioned that so lone. GS 

holds such pemlt unrevoked 

ape 2 

the arpllnant 

na wJ.11 r,ot violate any of the laws of t!ils State ralatlve to 

the traffl.o in, transportation, sale, or dslivery of liquor or any of the valid rules, 

or regulations of the i5oorG, and ir. the ease 

of suah pemittess as are regtiired to account 

for taxes and fees t!:et suoh pemittees will 

account for any pay all permit fess and tax48 

14vl4d by thla Aat. All bonds raqulred or 

pemitteee shall be payable in Travla Coanty, 

Texas. In all ln4taho48 where other perml~~ 

4r4 raquirad, lnoidantal to the operation ot 

a buslnear for whiah 4 basla pennit is prooured, tha Board may in its disore~ion aoaept 

on4 bond to mpport all suoh penalts~ and in 

ruob amounts a8 it may requ%re..~ 

Art1014 $ClS, Revlsad Civil Ststutas, prorids 

among other thin@: 

"(0) Thin kinda of lneuranae'to bs arfaoted, whioh kinds oi fnsuranoe may be as 

r0ii0ns : 

1. Irka lnuuranoe, rhioh tam shell be 

aonstmad to Inelude tornado, hall, oMtp and 

flaatsr luauranoe. 

2. Autonoblla immranoe, whioh term @hall 

be oonatruad to include Sire, thsft, tram-. 

portatlen property damaga, oollision llab%llty 

and torna d o lnsuranoa. 

9. Llablllty lnsuranoe. 

4. Warlns insuranoe. 

5. Aocidsnt and health insuranae. 

6; Burglary and plate glass insuranea, 

I. Fidelity and surety bonda lnsuranoe, 

8. Any other kinds of Inemanoe not 

above speoltled, tha making or whioh is not 

othemlse utilawful -in this State, sxospt life 

lnsnranae.* 
Ron. Bert Ford, Zaroh 29, 1939, Page 3 

Article 5017a, Revlscd Civil Statutes, reads 

aa follone: 

"The underwi-iters at a Lloyd's shall not 

aswme nor write lnsuranoe obligations in 

Texaa nor for citizens of Texas, nor covering 

property locited in Texas which prodace a net 

premiia income ii: exoess of ten times the net assets 

or such underwriters, and if at any time ths 

liabilities aesumad upon auoh insursnoe shall 

produoe a net prealum inoon greatar than ten 

times auah net asaeta than no further lnmuranoo 

obligation ahall be assamad nntll the net aaa4ta 

have be4n inoreand so 4s to admit of addltlonal 

inauranoa 4bllg&lona uhlah will p@3gos a prsmiuu inoome not gmater than tan tl&& suoh net 

asset; provided that whan th4 net azaeta at a 

Lloydta.khall equal the am of mqnay rhioh dll 

be raqulred of a atook imauranae aompany doing 

the 44~4 oharabtsrs~of bualneas In Texas,.then 

his limihtiona up4n tha rolnma of bnslnaas to 

ba wrlttsn.sh4l.l notrpply rtwther; provl.dad ttuthar that if in the Judgment and dlsaret~on of 

the Board of Insuranoe Commissioners suoh underwriters (at) a Lloyd.8 ah411 have atfeoted 'r4lnsuranoa, or other a4ntraots, wlth responalble 

and solvent lnsursnoe oarrlars reduolng the nat 

linaa at risk oarried by auoh underwriters at e 

Lloyd's 80 that their aperations 4r4 safe and 

their solvenoy not in danger, than suoh Board 

aey ranaw or extand the lioenses of suoh undarwriters, lrrsspeotive of this limitation.4 

Artiola 5017e, aupra, llmlts tha amount of 

aur4no4 obligations that an undaruriter of a Lloyd*% 

ah411 aosuma - a'right in T4xas -_ for 4itlzens ~_. of'T4xaa 

Inor oorerlng 3roparty looated in Tares whloh produo a 

nat pramium 3.noonrs in ex4asa of tan tLmes ths net aasets or suoh undsrwritara. This statute, by Its Ianguag4 or terms, does not'llmlt tha amount of bondo that 

such undsrwriters msy write nor does it imply euoh lllactations by its provisions. Horever, under this 8tatuta suah undsrwrltars have th4 right to reinsure with 

responsibl4 and aolvant insuranoe oarrlere, rsduolng 

the net lines at risk oarrl4d by suoh undanrrltera 
fion. ?krt Ford, Lfarah 29, 19S9, Page 4 

80 that their operetiona are sere end their solvency 

not in danger; provided, that 5f in the judgment and 

disaretlon of the Roard of Insuranoe Comlssi~~ners suah 

reinsurence 18 neoessery. ,A8 thSe applies to iRSUP 

enoe obli@.lms WC csnnot oonatrue this statute as 

applying to bonds that such underwriters may write 

wiiioh are required by Section 16, Article 1 ci the 

Texas Liquor Contr4 Aot. 

You are sespeatfully advised thtit it is the 

opinion of this Departant that oompenlea organized 

mdar Chapter 19 of the Ituuranae Law8 of Texna are 

qunlified to alto bond8 nquired under the Liquor 

Control Aot and that there 1s no l%mltatlan.on the 

.-Lawyers Lloyd8 of Toxw" as to the amount of bonds 

they oan write for the Texas Liquor Control Board. 

Trwtiagthat the foregoing anewers your inquiry, we remala 

vary truly your6 

ATTOBBBY - OF =X-M