OFFICE OF THE ATTORNEY ,GENERAL OF TEXAS

**AUS7lN**

Honorable.0. P. Loakbart, Chrlrmn Ijoua or lMuranoe Co8u.m.1onar. Au8tln, 

### Texa.

Dmr Slrl oprnlon no. o-yxio 

### Rer Anl rirtioq @mUa ruoru.a In **&drutrla;1 uul**  **gvk3up ’** **~llSo** lniq .ap8‘xogul~ly 8aheduled aLr rdvk Jsatueon daflnlte1.J UtablU4d alrporta: 1. void lIksof8.r

m.8it pfm the lnsuror'r Ii ort8tolmt 11a llity after the axpllutlon of 

### th. **amte8t** puloa 8.t out In ~LrtlOl~8 uid 4764b, Vernon’

. An

### not8td Civil **Statute8.**

8eotloa 5 of Artlolo 4764b, Vernon’8 Annotated Civil **Statutea,** doallng rlth indu8trlal llfo Ln8uranao~ read8 In p.rt a. follov8:"Ro lnciustrlnllife lnsurnnca policy dollvored or 18sUed for **dellVery** 111tba StSte 01 **Tex&8** @hall **OOntain** any **prOvlsiOn Vhlnhl**  (I

. . . . *(b) axeapt a8 OthUIIl88 provided herein, proVlde8 l-OrMy mod8 Of **8ettlWOtlt at**  **WtlWity** OZ **1088** value th&n the WOUnts 1118~md on th8 faoe of the polity, p1U. dividend 6ddltlOn. thereto, if &ny, le.8 My iCidebtedne.8t0 the in.,Wer 011the pO1lOy, aod 1.88 any prOtiU84thrt

. may, by the 

### tormr of the policy, be bduotad, Uid prorlded al.0 th@t thi. F@OVi.iOlI -11 not raved an addltlonal l ooldental death bowr1t L lng llmltrd 80 a8 IlOt to b. pay8ble in want of doath frw OWt8l.n aause8 Of 8OOldent8."
There i8 a 8lnllar proVl8lon la htlo1e 4733, Vernon's Anaot8ted Civil Matutor, Vhlch read8 ln put 88 fO11OU8C

"POliOie8 8hau UOt oont8ln Whati Tori81OtlS 

### fOl'

h-fit &88 

### Thn Ptil&IWJfitiX3 hX'- taln Cue8 Penltted. BO poli0y 0f iir0 iru~rmae 8hll be i88Wd or dellrerod ln thi8 

### Stata, or be 188wd by 8 life in8ur8noe oolpany hOOrpor8t.d UndU th. l8llO Of th18 St&e, If it OOCItaln8 any of the foll~vlng prool.lOn8: I

. . .. "3. A **&WOVi.iOLi** for UJ mode Of 8OttltiOIlt 8t meturltr of **1.~8** Vtiw thm the 8mOUnt8 in8ur.d On the f8Oe of the polloy, plus dividend 

### l ddltlon., if My, 10s. w lIldebt.dIm.8to the ooupuzy on the pollay, and le.8 any promlum ut nuy by the 

### torma of the polloy bo deduotmd; provided, however, th8t any ~ooapn~ IUJ 188~ 8 POliOy ~ollli.145 

### abenefit **le.8** than tha fU11 benefit ln oem of the death of the ln8ured by hI.8own hand uhlls 8+a or lnranne,or by follouiq 8tAt.d haxudow OOOUp~tiOLl., or in the event the de8th of the lluured 8hould result from avl&tlon l

otlvltle8 under the oonditlonr: *pelfled in the polloy, to be approved by theiitin~rt-tbl; 0. P. Lockhart, paw 3

Board of lnswe.uc6 Com.mlsaion*rs,a8 provided in Chapter 3, Title 7d, of ths Revl8ed Clvll StatUt.8 Of 4.X438 Of 1925. This proVl81on ahell not apply to purely 8ooldtnt and health pollofe8. No forsgolng provl8lon retit- to polloy form6 8h.11 apply t0 pO11Oi.8 188Utd illl1.U Of, Oc in exohmge for, any other pO1101.8 188Wd before July 10, 1909. i AOt8 **1909, 3l.t**  **bag., p.**  1.92,360. 23; Aot. 264, t 1.)" 19 1, 47th h&3., K.S., 8.8.

Th. quot.d 8v1etiOn OtiU.6 

### l tt.mpt. to .X0.&% md 

### txoldt from the oortrege 

### of th. polloy the r1.k of de.th frm the 8ptOlfitd 08UI.8. It dot8 not eontbaplrte eg fi8blllty on the polloy .8 auoh, but, In efftot, provide. th8t the d.8th of'the 

### ln8ur.d fl'0.i th. 0.U8.8 8.t OUt Win n6v.r Mt’W. the policy. It 18 not 8 01.U.t 

### rt3O@iZi~ a lleblllty On 

### the polloy end reducing under 8ptCifitd alroum8tmot8 the amount ~rcml8.d to b. p8ld. For the.6 X'688on.it 18 not l 'prOv181on **for** any mods of 

### l.ttl6ment et maturity of leea value thm th. amount. tneur.d on th. feoe of the p011ay~ 8Ed 

### the 8bOve QU0t.d 8t8tUtOry ~rOVl.iOM er. not eppl.iC8bl6. &uht v. Ftdtrrl Llfo 

### Inmuwnct Company, 248 3. V. 3251 Amwlae Uetlone1 Inaur~ot Capany v. Idweon, 127> 3. Y. (Bd) Great Southern **Lift** In.urenoe **Cappanr v.**  **Ulna, %+4.**  **105** (24) 902; Owrdl8n Idf. In8urenc6 Company T. tiloo8tlen, 155 3. Y. (2d) 396. t%t l~lM8. Of CT.rt8iBO.... illdiO~tt8 the oontruy vim. **Athnt8 Ltoe**  lBllWMO6 **Cm-y V.**  **COP** mltr, 85 9. W. (24) 1045; Cook Q. cOntlMnt81 C88wlty Conpe.ny,160 3. Y. (Pd) 576; Unlvor8el 

### Lift 1n8UF.nO. 

### Co-y v. Grent, 117 S. Y. (26) 813.

The Court In the 08100.tl.n 08.6, 8UJW8, 

### Vhllt dleCuulng the oplnlon of th.lAV.~n CU., SUpF8, h.ld:

. It 18 81.0 irpliOit in the ~lllion th8t .i& i...rtlon of non-lleblllty I. **not pro**  hlb1t.d by uid Art. 4 3, 8Ubd. 3. l'hapmhlbltlon 

### dtelerod by Art. P733, 

### l ubd. 3, ol.arly oonttRpl8tt. 8 lhbility Upon e policy 88 .UOh, urd the prohlb1t.d ~OV181OU 18 on. 

### ooduolng th. eaount prcalotd to b. paid upon ooadition8 end With OUttin .XO.ptlOn.. In our oplnlon, it can 

### h&r. PO l p pliO8tiOB

tol proVl8lw rhloh Optr~tt8 to 

### l vtildth who16 promlst; provided, of OOUTI~, 8uch prOVl8lOn 18 not 8UbjtCt t0 8OIt oth6r proNbltory rtetute."I.uncrebla 0. P. Lockhart, p&a 4

The exoeptlon In subeectlon (b) of Aectlor~5 of Artlola (1764buhleh leeme to authorire luah a olau~e In conne4ticm with 'an 8dditlonal death baefit" oarrim the UP plio8tlon t&t luob olau8a 00108 vlthin the rtattimy prohibition dnoe, otharvls~, the exception **vould** be unneceeeary. hn lmplio8tlon, hovover, should not be ooxutrued 80 as to rary cr broulen tba lxpr888 laII@AageOf the 8tatUte.

Subuotlau (0) of kotion 2 of Artlclo 

### 476kb,Voro~n*a Annoted cwil stmte0, rating t0 iddrutrm iire irmur~oeandlubuotioa (1) of 8oetlon 1 of &tlolo 47648, V8rnOn'B Armotakd civil StatUtU, relatirrgt0 &rOUp iire i~ur811oe, both 

### roqulre 8 polloy provl8lon 8tatlng IA **8ub8t8me that**  

### thapolloy 

### 8U bo lnooatoatablo not later 

### t&n tvo yo8r8 fra It8 date. The 8titUt.8 LLUI OWt8lI.ieXOeptlI3SI8 t0 tbs lnoonto8t8b]lo**reQulromnt** but the 

### quoted **8viatlO.U** alWISe dom8 not ftil **V1tM.n** 8UCh .xOeptlOM.

tie 8UOh **tnOOnte8trb&** 

## iVQkiirOUllt8 **QQJLttibla** 

## t0 8UOh 818USO? The **Oa8.8 OOSl8trUing**  inOOntr8t~b& **Ohi 8Z?O**  numerou8. In 

### tha State of Ieu York (Betropollt~ Liio In8ll?8llOO c **m.r.** 

### 4494 **V.** 

## convy, **3uperintwulent** 

## 0r **~.XUU~MO, n52** 



## m.8. 64~) and in other 8tater it i8 held that UI inoontortable O~NUO i8 not &“IIM68tO l8 **to OOVW~e** **’ urd**  thatl 

### ure

p ollry O&ILU l xaoptlng W 

### l

xoludlng fra tha rl8k U8U8d &ah rra 8~Olflul OaUU8 IS not oontru~ themto. It 

### la rU8UMd 

### that the l.nmlror’8 

### doruuo 

### uncle 8Wh l 018~80 18 ZIOta OOntO8t Of ths pOllOr **bUt Uh**  **effort** 

### to udoroe **It8 tera8.**  %18 reUOllb& 18 UUd in 8UU81 28X88
ouea . (2d) r8XU **R?U&ilti81 -UP-e**  **c-7 1.**  **liil*r,** **80 9.Y.** 

m2k sOUthVO8tUII Life h8WII.08 cCUIIDMy V. aOU@tCUi, Ul S.Y. I2d) 

### 61gb

On the other hand it tn8 **bowa** hold th8t 8 eOate8table 018&U. l&UlIq O-trip UOaptlOllW 18 

### intWld.d **t0 8llOU**  **none** 

### not **amod,,ud thku**  **a** 

### l **1W80,** not l**hhori~8d by**  th8 axoeptlons, but 

### l

ttoa#tlng to llalt oovarag8 md uolude rirk8 18 **oontruy** 

## to the **inaonte8tabh** 

### r8qulromnt. *rnler **v.** P8OlflO **YUtU81 uf0**  **XMLUMO~ ColpLlv,**  173 hr. 1078, 88 X&H. 

### 76

.

33 

### For 8 oo~eotlon Of 8uthorltl88 8.8 the WOta- .tiOZl8 8t A.L.R. 

### 394, 8nd 88 A.L.R. 

### 773.

The rO-8 8a8*8 **sonatrulng** andl log tin very alall8r ltmonta8t8bl8 rWJtireIWit Of title 732, V8rn0n'lflonorableil.f. Lockhart, **p4xc 5** 

¬ated Civil Statutes, u-e helpful in determlnl~ the lp- pllaablllty of the 8bOVe nrentlonedprorl8lone to the aviation 018U8e. **The** SU&WeM COUl’t **Of 2** **’ 0x88,**  **fIl AMrfOPn**  N8tfOnd **In** l **r8110e** C~qmny v. Tabor, 230 3. U. 397, 8aldr

*After the 

### l

xplratl0n of the period fixed, the 8UbdiViliOn WliUfMt~8 811 dden8cl8, OXOept tlloae

### mpeol8ll~a8ntlonab."
Inbarfern Ymtlowl Iauur8noeCompanyv. 1063, the Ccrri8810~ of 49Oa18 nald; UO1.h. 22 3. If. (2dj



### Vh0 ra~iing md l 

### rr00t or 

### there **prOVi8iOIA8 VU8**  

### t0 **pe80?1be** t.UOmlr8 l8 tb lyli.EU@p@ri0d Of lfMit8tiotl,aftOr Vhlah I10dWfOM0, OXO@pt no-pant of preaiuw or vlolatlom 

### or oon4ltlopl relative to naval or ullltu~ **servloe** duri0.g the VU, 8houldb libb3dt0 

### 4.hatpapd **Or 8**  **iu8** 

### pOilOy..

**. .** **’**

In Atlanto We Iwursaoo Company v. CoCPIer, 

### 85 3. w. (la) lo45, tb8 Camri8810n 

### 0r **&Jp818** (opinion adopted by the Suprm Court) ha4 far oonsl4errtlon a ola~u provldlng thlt n0 b&h bWMrit ~88 pay8b& if duth ?88tdtWd ira 0 **dL8ea80** 

### OOXktr&OtWd **&Z ’** **iOt** t0 **-** dAt8 **Or the**  **POllOy, &hd**  that Qeeth Zror 8uoh aW18e Va8 not 8 risk -rumed. On OePtllled qllO8tlOM lnqalrlrl&vhetber , l.n vier 

### 0r the incantestable requirement, the ln8urer could, 8.ftertwo year8, dete&koh that ground, the OOUPt 88id:

" **Life fll8IWUWO**  **8-88 %88uing**  **pOxOii8 ’** **Oi uf0**  **inrtWUiO8 in**  **thi8 8%,8**  **~0 LWt**  idt 

## rru te dOtOm rht **u0eptioru thy**  **rix.l** 

### vrite **into thlor**  **pOuO1.8. %8**  **8titUtO8 Duy**  

### the PWr rittd

l XOO~tiW,

**ud 8**  **5JrOV28100 d&i**  **other** 

### l xoeptlonr**18** ~014. Any other oondruotlon of the l

tatutoa uould thwart the evident **ptWpO80 Of**  **their WBUtMIIt.**  **If the**  **t¶X9eptlO3** 

### l ttO4ItWd **t0 be**  **h in**  thi8 **-80 8hOkd4**  **be** Upheld a8 valid, there would be no 

### 1-t to the 

### numberof uoeptlonr that oo~ld be vrltten lnto a alloy or life IPmmaaoe, and, by mltlplyino tg-, 

### an iluuranoeoompulycouldvhittls **doun the**  **rf8k8** It **88eU808** UJ2tilft **8pO11OfeE** would have but little, if any, re81 value. To prevent thl8 was the purpole far vhlch the Itatutem 

### were enacted."The queetlon certlfled la 8nsWered 'NO.'"
The Cornusr 0680 

### has been questioned by JuQo Funderburk in tha Oalooetl4n oare, 8rlpra,in 80 fU ar It doe18 Vith Article 4733, but vc cannot agree thet it h88 been di8oredlted as to it8 lnterpret~tlon of the lncontestablo atiuSe of &tlcle 4732+ A8 to the letter interpretation it ha8 been folloued in **Ua8hlngton** PlatlooalInauranoa CmLpany V. 

### Clay, i% 3. u. 

### (2d) 834, Yhlah ca8c rch.wd, by virtue of &Section3 of Artlole 4732, to allow the insurer to Cafe&, after two yeer8, OKAa ~18~80 thet cuurot be dlatlng;uLahed in prlnclple from the cl8ura now in 

### question.

**A** llre pollo~ 

### provialon that the aontr8ot 8h8ll never beoom effeotlve unlere it 18 delivered vbl2e ineuro 18 tiiUa findin 8oun4 he8ltb la V81id. Qre8t PIetlonalLit8 Iluuramce **CO V.**  &~Lc, (corai88im Or Appeal8 hai8iOA) 1% 3. u. (23X2. 

### But the lneurermay not rely upon 8uch olauee 88 l defame after the expiration of the two-year oonte8t8ble r1Od. Reuablr Ufc In8urraoe Coopeny v. Wyatt, 154 S.Y. 26) r 24% ?ies4rve 

### Loan ure Insurlace Capany v.Brown, 159S.Y. (24 179.
In our oplnlon the **aVi8tiOA** olau8e violate8 the,tinconte8table requirelaent8of Artlola 4764r and 4764b, Vernon18 

### Annot8teaCivil **St8tUtW8,** iololer 

### 88 itpurportr to provide a dsfenu 8fter the expir8tlon of the **eonte8t~ble** perlo 

### therein wt out, **and** suoh cbu8s 8hotid not be 

### 8pprovedby the Board for that **ronson.**

Us 

### do not attempt to 

### anover the **broad** 

### que8tlon **u** to 

### uhotherArtiole8 4732 

## and k733 l pply to **industrial** lire and group US4 pollcle8, but vu ~111, in thl8 oomeotlon, be glad to give our apinIon on any 44finlte f8Ot 8lturtlon sow berore your department. Iiowvor, ue oil1 to your 8ttentlOn the fol1OUlng pX’OV181Oll of hticle 476'Jbr

"Sad. 7. A88OUiatiOA8 &ZCWptOd. ThL8 **AOt** 8hd1 IlOt8p& t0 10081 **UUtLld** ai4 **888OOilbtiOM** or etate-vlde mtrtu81life, health, uul eeoldent OapMlW8 and burial ~88Oclation8 Operating under Senate Bill Ao. 135, Act8 of the Regulu S48- 8iOn of the Forty-8lxt.hkgl818tuF8, but thi8 Act 8nd ao other rhell 

### apply to uxd govern the form 8nd oontent 

### 0r lndustrlal lir4 insuranae pollol48,

### Eonorabl8 0. P. 

### lAwhut, p8go 7

u theyua bf&md buda, lm8ud byal1otbu la8ur~O txmpMl88.’ YOtu#ruy truly