# 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 OpinionNo.MW-411
Re: Whether reportsregarding 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 thepublic. Chapter 20 of the Texas Insurance Code provides that certain personsmay apply for a corporatecharter:

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 RecordsAct 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 SecuritiesAct.

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

In Open Records Decision No. 158 (1977), this office held that a chapter 20 organizationwas not a "financialinstitution"forpurposes 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 opinionnoted that the legislature intended to include insurance companiesregulatedby the State Board of Insurance within the term "financial institutions" in section 3(a)(12). The conclusionwith respect to chapter 20 organizationswas 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 RecordsDecisionNo. 158, article 20.09 was amended and the referenced provision omitted. Acts 1977, 65th Leg., ch. 383, §3, at 1038. In our opinion, the omissionof that portion of article 20.09, deeming chapter 20 organizationsnot to be engaged in the business of insurance, indicates a legislative intent to bring such organizationswithin the scope of the term "insurance company." On the basis of the reasoning of Open RecordsDecisionNo. 158, if a chapter 20 organization may be considered an "insurance company," it is also a "financialinstitution"forpurposes of section 3(=)(12). Accordingly,it is ourview that all examination,operating and condition reports regarding chapter 20 organizationsare excepted from disclosureunder section 3(a)(12) of theOpen RecordsAct.
SUMMARY Examination, operating, or condition reports prepared by, on behalf of, or for the use of the State Board of Insuranceregardingan organization charteredunder 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 AttorneyGeneral of Texas JOHNW. FAINTER,JR. FirstAssistantAttorneyGeneral

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

RICHARD E. GRAY III ExecutiveAssistantAttorneyGeneral Preparedby Rick Gilpin AssistantAttorney General
APPROVED: OPINION COMMITTEE
SusanL. Garrison,Chairman Jon Bible Walter Davis Rick Gilpin Jim Moellinger

p. 1404