Honorable Ralph Brock 

County Attorney 

Lubbock County 

Lubbock, Texas 

Dear Sir: Opinion No O-4879 

Re: Under the facts submitted is the 

State Farm Fire Insurance Company 

of Bloomington, Illinois, eligible' 

to write insurance upon the properties of the Lubbock Independent 

School District? 

Your letter of recent date requesting the opinion 

of this department on the above stated question reads in part 

as follows: 

"I have been requested by Claude L. Hale, 

County School Superintendent of Lubbock County, 

Texas, to secure from your office an opinion as 

to whether or not the State Farm Fire Insurance 

Company of Bloomington, Illinois, is eligible 

to write insurance upon the properties of the 

Lubbock Independent School District. 

"Under Article 4860A-8 of Vernon's Annotated 

Civil Statutes, it provides that a mutual company 

may write insurance upon such corporations as the 

Lubbock Independent School District, however, in 

the recent case of Lewis vs. Independent School 

District of the city of Austin, et al, 161 S.W. 

2nd, 450, the Supreme Court held that this Article was unconstitutional by reason of Section 52 

of Article 3 of the Constitution of the State of 

Texas. 

"It is my understanding that the State Farm 

Fire Insurance Company of Bloomington, Illinois, 

is not a mutual but a stock company and operates 

in Texas as an old line legal reserve stock compaw. The State Farm Fire Insurance Company of 

Bloomington, Illinois, is not to be confused with 

the State Farm Mutual Automobile Insurance Company 

and is an entirely separate company. 
Honorable Ralph Brock, page 2 o-4879 

"I give you the above facts which is all the 

information I have regarding the State Farm Fire 

Insurance Company. It is my opinion that if the 

above State Farm Fire Insurance Company of Bloomington, Illinois, is not a mutual but an old line 

legal reserve stock company, it is eligible to 

write insurance on the properties of the Lubbock 

Independent School District, however, I have been 

requested to secure an opinion regarding same. 

1, If 

. . . . 

A representative of the State Insurance Department 

informs us that the State Farm Fire Insurance Company of Bloomington, Illinois, is an old line legal reserve stock company 

having a permit to do business in this State. As this company is nota mutual company the opinion of the Supreme Court 

in the case of Lewis vs. Independent School District of the 

City of Austin et al, 1.61 S.W. (2nd) 450, does not prohibit 

the company in question from writing insurance on the properties of the Lubbock Independent School District. 

After a careful search of the statutes and constitutional provisions of this State we fail to find any statutory or constitutional provision prohibiting companies of the 

kind and class of the State Farm Fire Insurance Company of 

Bloomington, Illinois, from writing insurance on the kind of 

properties inquired about. As the above mentioned insurance 

company is a stock company and operates as an old line legal 

reserve stock company it is the opinion of this department 

that said company is eligible to write insurance on the properties of the Lubbock Independent School District. 

Trusting that the foregoing fully answers your inquiry, we are 

Yours very truly 

AW:mp:wc 

ATTORNEY GENERAL OF TEXAS 

APPROVED OCT 5, 1942 By s/Ardell Williams 

s/Gerald C. Mann Ardell Williams 

ATTORNEY GENERAL OF TEXAS Assistant 

Approved Opinion Committee By s/ BWB Chairman