OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

HOmrablo 0. P. Lookhart, Chalmim 

Board of -e ColJmd.sslol#rs 

Austin, Texas 

Dear sir: opiniou NO. o-6 A 

Re: 

stautes, and re1944, requesting 

tbo follOlag three 

Of 8 OOUtl'8Ot With the 
Hon. 0. P. Lookhart, Page 2 

"(2) Under Seotlon (a) of said Article 

48608-7, must the ~prdmium oollsot0d in advanoe 

represent an annuals premium, or may It r0present 

something lass than On 0nnu01 premium? In this 

OOnnOotIon, the GOneral Rules OS Texss Automobile 

Casualty Menu01 promulgated by the Boerd provide 

for paying premiums In monthly Installments, and 

the first payment must be at lbast 16 2/j per osnt 

Of the sstimatsd tot01 annual prsmium, and provide 

under oertaln 00nditIOns ior vriting a polloy on 

a SIX moptb8 bssis In whioh oasb the premium shall 

bo 55s o fea l nnuOl prOmIum. WOuld on0 Installment 

IA the first oaae or th&prOmIti for the 8Ix months 

polity Inths aeoond 0800 qwslif+y as a 'premium' 

under this f3eotIonl 

“(~3) The. Oen~ral Mutual Insuranoe Company 

proposes to write both ~Iw and 000sualty Insuranoi,. 

Under Seotlon (d)~oS said Artiole 48608-7, what' 

amount of ~oash and Invested assets* Or surplus 

must it hsve to be lioensed and oontInu0 In bu& 

noas, fifty thousand doll&r0 or ssventythousand 

dollars?* 

Article 48608-7, Revised Civil StatutOa, to'whioh 

your question0 relet0 pr~~Idesr 

'Ioo oompidip orgmlsod under this Aot shall 

issue polIoIeb*~r transaot 0ny business of Lnsurano0 unless It shall oOmply.vIth th0 oonditlona 

f011cMng,~Or until the ROE&l haa, by fOrma liOOAS~ authorItt&It to do so, vhioh lloOn~e ho 

shall AOt isaIm until the oorporatfoA has oomplled 

with thy follouing OOAditiOM: 

"(a) It Oh011 hold bona SldO OpplIOOtfOM 

fop IMUZWLO~ \rpon whioh it shall I~~u~sintultaneoualy, or It sh011 have In Sor00, at 1005t tWOntY 

polio160 to at leaat twenty membOrs SOL the O~m0 

I&XI of inauranoe upon not less than three hundred 

separate risks eaoh within the m0xl.m~ ain@ risk 

aesoribed herein; 
. . 

: 

HOA. 0. P. Lookhaltt, Page 3 

"b) 'J&O bsxlmum sbglo rI8k* shall not moeed tv6nty per oent. of tha admItted assets, or 

thrwytImesthbaverageI?iak~ena paroad of 

the IAmmAQo IA form, wbIabov.r la the groat*F, 

ala reIAsumA0~ taking &foot 0ImultaAeous 

thepoli~boSqdeduat+d indotomdnhq &?!i.imum single. risk; 

"(0) Fw the $urposo of traasaotlnng workme~'s 

ocaaponaatlonIrmmmoswho~~ sbllhacn app11oatiana frm at lwat iiitJ 

7 

loyoraforlaauraAn0 onuhioh poliol4Ba arm to be l swd oovwi.r4g 

not 1000 thaA tvo m e@~o~ uohauoh 

~lagbebeingoonsiderabae~te~akt.urd 

tbaplwvi8IoM tithoegardto maxImum sIx@a risk 

Sh@l.tAOt applyi 

s"(d)- It'shall bavo oollaotad a p??eadw in 

advaaoeupon~*appl~imtion~the totalofvhloh 

premium shall IjB bold In oash or soaurltles Zn 

vhiohstoak f~.and~8ual~.insua'anoe oompanies 

are wader tha Tear80 lav authorhad to Invest. It 

'ahallhaveandatallthas maIatalnaashaxl invast& assets of not lass thsn f%fty fhauspad dolIASUZWO~ oampany and not 

'time*he oompany shallhave asset8 or sumlu8 in 

_ 108s&imlatthaAIaraqul~fortha Insuranoo of 

polIoies ala the traAsaotIQA of busiruas UamA ort!ss:%tL 

SMll oua*tit%ngP4Y 

telyrqmtawhoonditioA to tbm Board of IMuraAoo COIIDdss:ioAers, llblah 

may IA its.disorat1an azdaP a ral.nauraIloe of tha 

‘ outotazdinglIabflities of the oo~in8-a 0th~ 

ocmpangtru~aotingbu8~88 inthis State -proocHb 

to a llquIdat1QA of tba Sam." 

T& l bma utiale sets .fd awtaln oomdI~fonr -oh 

mustbafulfllladbyamutualbasuranoa 

una.r chapter. 9, ntle 78 of. said 

by the Be-of - cQaQllsafoAers to write IAsurano.. with 

thouoeptIonofo~ tion risw, prw~dad for IA P-s'+ (0 
Hoq. 0. P. Lookhart, Page 4 

suoh OOmgaAy Shall ISSUe Sim,U8AOOuSly, Or h8v0 in fOr00, at 

lesst tvemtppolIoIos to at least tvedy mmbexv for tha 88nw. 

kind Of -A00 UpOU AOt 108s th8A ths bailA& AWbOl! Of thI'e0 

huodred.~ep8lute siSk8. 'Ilu80 wt k~besed upm hono fide applMetl0na for mtsil Lrswnor?. 

in the. law. ,au$hfels 

Ue f&xl a0 provlsIon or language 

lrAsmam* condssIoAers to 

?D8AOQ OOAtX?klOtS 

ialQmofappllmticm8f~poUales of baumnoe almultaneoualy 

Is6ued~olr In iem. 

'Wo.qmte fro53 Wosda and Ptirasea, Vol. 36, Pomprnent 

xdltion, i?.: pj48 


175 

HOA. 0. P. %OOkhal’t, &S&3 7 

2. The texa “pa-emlum” as used In Paragraph (a) 

of said statute, which provides for the oolleotlon OS a pmn.lum 

in adtanoe, do08 AOt MOSS88~ily mC8A 8~ annual pl'emium. The ' 

premium for a polioy baabd upon a bon& Sldo applloa~lon to be 

wrItten oa~e sir mc~~ths baais and vlthla va1I.d regulation of 

the Baaw, will wt ~fhe z+e@maat of the statute. 

3. Befeiyamutual iASUFMQlt Ow OA Ol?@iAitatlan und&Cbap~er 9i’2%L~ 78, V..A. C. S. may ba iSsUed a 

perEltt~n%tebqthf~~knd ocmsualty IAsuraAae, ItmsthaYe 

a aurpltur.lA aaah or~%Amdied l as4tts of not- less th8A &WOAty 

ThousaAa Bollars. 

wxtfo 

.c