The Attorney General of Texas 

December 18.1981 

MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. BOX 12646 

Austin, TX. 76711 

5121475-2501 

Telex 9101874-1367 

Telecopier 51214750266 

1607 Main St., Suite 1400 

Dallas, TX. 75201 

21417428944 

4924 Alberta Ave.. Suite 160 

El Paso, TX. 79905 

Q15/533-3464 

1220 Dallas Ave., Suite 202 

Houston, TX. 77002 

713/6500666 

606 Broadway. Suite 312 

Lubbock, TX. 79401 

6061747-5236 

4309 N. Tenth, Suite S 

McAllen, TX. 76501 

51216624547 

200 Main Plaza, Suite 400 

San Antonio, TX. 76205 

5121225.4191 

An Equal OppOrtunityI 

Affirmative Action Employer 

Mr. W. P. Dams, Jr. 

Chairman 

State Board of Insurance 

1110 San Jacinto 

Austin, Texas 78786 

Opinion No. MW-411 

Re: Whether reports regarding 

financial affairs of 

organization chartered under 

chapter 20, Texas Insurance 

Code, are public 

Dear Mr. Dams: 

You have requested our opinion under the Open Records Act, 

article 6252-17~~. V.T.C.S., as to whether reports regarding the 

financial affairs of a group hospital service plan are available to 

the public. 

Chapter 20 of the Texas Insurance Code provides that certain 

persons may apply for a corporate charter: 

for the purpose of establishing, maintaining and 

operating a nonprofit hospital service plan, 

whereby hospital care may be provided by said 

corporation through an established hospital or 

hospitals, and sanitariums with which it has 

contracted for such care, as is hereinafter 

defined. 

Ins. Code art. 20.01. Corporations organized under chapter 20 are 

"under the direct supervision of the Board of Insurance." Ins. Code 

art. 20.02. 

section 3(a)(12) of the Open Records Act excepts from disclosure: 

information contained in or related to 

examination, operating or condition reports 

prepared by, on behalf of, or for the use of an 

agency responsible for the regulation or 

supervision of financial institutions, and/or 

securities, as that term is defined in the Texas 

Securities Act. 

p. 1402 
Mr. W. P. Dave*, Jr. - Page 2 (Mw-411) 

In Open Records Decision No. 158 (1977), this office held that a 

chapter 20 organization was not a "financial institution" for purposes 

of section 3(a)(12) because, inter alia, it was not the kind of 

"insurance company" which the legislature intended to include in 

section 3(a)(12). The opinion noted that the legislature intended to 

include insurance companies regulated by the State Board of Insurance 

within the term "financial institutions" in section 3(a)(12). The 

conclusion with respect to chapter 20 organizations was based: 

on Insurance Code provisions that describe the 

purpose of the g=ow hospital service and 

distinguish it from insurance companies. Article 

20.09 of the Insurance Code states that 'such 

.corporations... shall not be construed as being 

engaged in the business of insurance under the 

laws of this State.' 

Following the issuance of Open Records Decision No. 158, article 

20.09 was amended and the referenced provision omitted. Acts 1977, 

65th Leg., ch. 383, §3, at 1038. In our opinion, the omission of that 

portion of article 20.09, deeming chapter 20 organizations not to be 

engaged in the business of insurance, indicates a legislative intent 

to bring such organizations within the scope of the term "insurance 

company." On the basis of the reasoning of Open Records Decision No. 

158, if a chapter 20 organization may be considered an "insurance 

company," it is also a "financial institution" for purposes of section 

3(=)(12). Accordingly, it is our view that all examination, operating 

and condition reports regarding chapter 20 organizations are excepted 

from disclosure under section 3(a)(12) of the Open Records Act. 

SUMMARY 

Examination, operating, or condition reports 

prepared by, on behalf of, or for the use of the 

State Board of Insurance regarding an organization 

chartered under chapter 20 of the Texas Insurance 

Code are excepted from disclosure under section 

3(a)(12) of the Open Records Act, article 

6252-17a, V.T.C.S. 

M A-R K WHITE 

Attorney General of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

p. 1403 
Mr. W. P. Daves, Jr. - Page 3 (MW-411) 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Rick Gilpin 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Walter Davis 

Rick Gilpin 

Jim Moellinger 

p. 1404