THE AYTOR~EY GENERAL 

OF TEXAS 

Gerald C. Mann 

AT-r,,,~NE:S GKNRC:I*Al. 

AUUTXN ~LTEXAR 

Hon. Shelby EL. Long 

County Attorney 

Jefferson County 

Beaumont, Texas 

Attention: Mr. Earl Blaok, 

Assistant 

Dear Sirt 

Opinion No. O-5706 

Rer Can common school districts and, rural school districts purchase group life 

insurance for their employees 

under the provisions of House 

B~;i~;:6, Forty-eighth LegisWe have your letter of recent date reading as follows: 

“We have received the following letter from 

W. J, Holloway, Superintendent, Port Neches Common 

School District No. 1.6, 

“‘The 1943 Texas Legislature passed House Bill 

326, which became effective on August 99 1943. 

douse Bill 326 amends the group life insurance law 

of the State of Texas to the extent that hereafter 

‘group life insurance policies may be issued upon 

the lives of all employees, as employees of any independent school district, incorporated city, town 

OP village, which has assumed control of the public 

school system within such municipality as employer.” 

“‘Since common school districts and rural 

school districts were not specifically mentioned in 

House Bill 326, even though there was no apparent 

intention for their exclusion, there is a question 

of legality as to whether or not common school districts and rural school districts can purchase group 

life insurance for their employees. 

“‘1 ‘shall appreciate very mush your getting an 

opinion for me from the Attorney General of this 

State on this subject at your earliest convenience.’ 

“The Act that he refers to in his letter is 

Article 4764a,, R.C.S. as amended by the 48th Legislatur e e 

“We’will appreciate your opinion upon this subject *I@ 
Hon. Shelby K. Long, page 2 (O-5706) 

The Act cited (Chapter 349, Acts of the Forty-eighth 

Legislature) defines group life insurance within the meaning 

of the Act as “Life Insurance covering not less than 2.5 employees written under a policy issued to the employer, the premium 

for which is to be paid by the employer or by tix employer and 

employees or classes thereof determined by conditions pertaining 

to the employment, for amounts of insurance based upon some plan 

which will preclude individual selection, and for the benefit of 

persons other than the employer ***.“I 

“Group life insurance policies may be issued conformably 

to the terms of Section 1 and Subsection 1 of this Act upon the 

lives of all employees, as employees of any independent school 

district, incorporated city town or village, which has assumed 

control of the public schoo 1 system within such municipality, 

as employer; such group life policies to be in conformity with 

Acts, 1931, Forty-second Legislature. Chapter 101, Page 172 et 

seq*, as amended by Acts, 1941 Forty-seventh Legislature, regular session, House Bill No. 10&l, and as amended by this Act. In 

the case of such school systems as employers the premiums upon 

such group life policies shall be paid by the employees and no 

part thereof shall be paid by said school district employers; but 

there is nothing in this Act to prohibit such school employers 

from deducting the premiums on such group policies from employees’ salaries and paying the premiums therefor with such deductions.t’ 

It is our opinion that the statute under consideration 

does not authorize the issuance of group life insurance to the 

employees of any school district, except those specifically 

named in the statute, and your question is so answered. 

It will be observed that in the case of school systems 

as employers the premiums upon such group life policies shall be 

paid by the employees, and no part shall be paid by the employers. 

APPROVED DEC 1, 1943 

/s/ Grover Sellers 

FIRST ASSISTANT 

ATTORNEY GENFRAL 

Very truly yours 

ATTORNEY GENERAL OF TEXAS 

By /s/ C. F. Gibson 

APPROVED: OPINION COMMITTEE 

BY: BWB, CHAIFMAN 

CFG-s:wb 

C, F. Gibson, Assistant