### 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. A o-6 Re:

stautes, and re1944, requesting tbo follOlag three

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

"(2) Under Seotlon (a) of 

### saidArticle 48608-7,must the ~prdmium oollsot0din advanoe representan annuals premium, or may It r0present somethinglass than On 0nnu01premium? In this OOnnOotIon,the GOneralRules OS Texss Automobile CasualtyMenu01promulgated 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 sstimatsdtot01 **annual** prsmium, and provide under oertaln 00nditIOnsior vriting a polloy on a SIX moptb8 bssis In whioh oasb the premium shall bo 55s ofea

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~ralMutual InsuranoeCompany 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 lioensedand oontInu0 In bu& noas, fifty thousanddoll&r0 or ssventythousand dollars?* Article 48608-7,Revised Civil StatutOa,to'whioh your question0relet0 pr~~Idesr

'Ioo oompidip

orgmlsod **under** this Aot shall issue polIoIeb*~rtransaot0ny business of Lnsurano0 unless It shall oOmply.vIthth0 oonditlona f011cMng,~Or until the ROE&l haa, by fOrma liOOAS~ authorItt&It to do so, vhioh lloOn~eho shall AOt isaIm until the oorporatfoA has oomplled with thy follouingOOAditiOM: "(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 inauranoeupon not less than three hundred separaterisks eaoh within the m0xl.m~ ain@ risk aesoribedherein;. . : HOA. 0. P. Lookhaltt, Page 

### 3

"b) 'J&O

bsxlmum sbglo rI8k* shall not moeed tv6ntyper 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 loyoraforlaaur

### aAn0 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

shallIjB

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 fhauspaddolIASUZWO~ oampanyand not

'time*he oompany shallhave asset8 or sumlu8 in 108s&imlatthaAIaraqul~fortha **Insuranoo of** 

_ polIoies ala the traAsaotIQA

### of busiruas UamA or

### t!ss:%tL SMll oua*tit%ngP4YtelyrqmtawhoonditioA 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 llquIdat1QAof 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'+ (0Hoq. 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~ annualpl'emium. The ' premium for a polioy baabd upon a bon& Sldo applloa~lonto 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 iASUFMQltOw 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