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### THEA~ORNEY 

### GENERAL OFTEXAS

Honorable J. N. Nutt OpinionNo. C-287 Commissioner of Insurance State Board of Insurance Re: Austin,Texas 78701 Whether County Mutual Insurance Companies organized and operating under Chapter 17 of the Texas Insurance Code and qualified to write casualty lines for statewide operationmay write all lines of automobile insurance on all motor vehicles in addition to those enumerated In Art. 17.01,Texas InsurDear Sir: ante Code.
You have requested our answer to the following question:
"Are CountyMutual Insurance Companieswhich are organizedand operatedunder Chapter 17 of the Insurance Code, quallfled to write casualty lines for state wide operation,authorlzed to write all lines of automobile Insurance only on those vehicles defined, enumerated or listed in Article 17.01 of the Code, or may such companies write all lines of automobile Insurance on all motor vehicles as that term is used or defined in Article 5.01 of the Code, specifically including taxicabs, longhaul trucks and othermotor vehiclesused for commercialpurposes or for hire?"
Your request noted certain prior Attorney General's opinionswhich dealt with various facets of this general problemand are of assistance in answering this question. Attorney General's Opinion S-168, held that, by meeting the requirements of Art0 17.25, of the Texas Insurance Code, as amended, a County Mutual Insurance Company couldwrite liabilityinsurance on automobiles. This opinion dealt with the amendment found In Acts 1955, 54th Leg., Chap 117,

-1374-Honorable J, N. Nutt, page 2 (c-287 ) .<'.

which was an extension of the specific authority found In Art, 17.01of the Texas Insurance Code as to types of insurance doverage available to CountyMutual InsuranceCompanies. Attorney GeneraPs OpinionNW-532, held that by matntainlng a surplus of $225,OOO.OO,which is equal to'theminimum requirement for stock companieswriting similar lines of insurance, countymutuals couldwrite all lines of automobile insurance. Your current request requiresus to resolve the question of whether the holding in Attorney General's Opinion NW-532 included the authority to write all lines of insurance on all automobiles or simply all types of coverage on those vehicles enumerated in Art, 17.01. The salient facts covering the backgroundand historical development of County Mutual Insurance Companiesare as follows:

1. The financialrequirements for the formation of County Mutual InsuranceCompanieswere initially quite limited. Acts 1937, 45th Leg., Ch. 99. 2, The surplusrequirementshave been strengthened until they are as stringent as those imposed on stock companieswriting all lines of automobile Insurance statewide. Article 17,ll (c),T.I.C., as amended. 3. In addition to the surplus requirements, a County Mutual InsuranceCompany Is prohibited from assuming a risk on any one~hazardgreater than five (5%) per cent of its assets,unless au& excess shall be promptly reinsured. Art. 17.25, Sec. 1, T.I.C. 4 ject'to County Mutual Insurance,Companlesare subthe uniform automobilepolicy provisions of the Texas Insurance Code. Attorney General's OpinionNW-401. The authority of County Mutual Insurance' Companies to write certain lfnes of insurancewas originally stated In Article 17.01 of theTexas InsuranceCode. This authority was broadened in 1955 to read as follows:

County Mutual Insurance Companies qualifyingto write casualty lines for Statewide operationmay write all linesof automobile Insurance. e D eU A t lo55 54th Le eh., 8 37A, ~rt.~17:25: Sec. l,gTt.IY;l. (Emphasisadded.) i! -1375-Honorable J. N. Nutt, page 3 (C-,287 )

Article 17.22 of'the Texas Insurance Code exempts County Mutual Insurance Companies from the operation of all'other insurance laws of'this State with certain exceptions. While Art. 5.01 of the Texas Insurance Code Is not controlling In determiningthe meaningof "all lines of automobile insurance," it is a legislativedefinition of the term "automobile lnsurantea" Article 5.01 provides In part as follows:
"Motorvehicle or automobile insuranceas referred to in this subchapter shall be taken and construed to mean every form of insurance on any automobile or other vehiclehereinafter enumerated and its operating equipment or necessitatedby reason of the liability Imposedby law for damages arising out of the ownership, operation,maintenance, or use’ in this State of any automobile, motorcycle,motorbicycle, truck, truck-tractor, ;;a,;:;;,

trac,tion

engine, or any other self-propelled and includingalso every vehicle, trailer or semiirailerpulled or towed by a motor vehicle, but excluding every motor vehicle running only upon fixed rails or tracks. Workmen's Compensation Insurance is excluded from the foregoing definition.' The term "automobile insurance" Is defined in 7 Tex.Jur.2d 228, Insurance Sec. 1, as follows:

'For the,

dual purpose of standardizationand convenience,.

the term 'automobile'is applied in a broad sense by automobile insurers. As used by such insurers, the term refers not only to passenger cars, but also to trucks, tractors,motorpropelled farm machinery, and various other types of motor vehicles. Furthermore,as thus employed the term sautomobile'is as comprehensiveas the term 3motoxvehicle.'" Automobile Is defined in Black's Law Dictionary, (4th Ed., 1951), 169, as follows:

"A vehicle for the transportation of'persons or property on the highway, carrying its ;wnmotive power and not operatedupon fixed tracks.
In Couch on Insurance (2dEd. 1959) Sec. 1x20,p. 49, we find automobile insurancedefined as:

-1376-- .

Honorable J. N. Nutt, page 4 (C-287 )

"Automobileinsuranceassumes various forms, such as liability,'propertydamage, collision, fire, theft, transportation,et cetera. When the term is used without qualification, It is generally understood that liability Insurance or In other words, indemnityagainst liability for personal injuries or for losses sustainedby reason of lnjuries inflictedas a result of the operation of the insured car, is intended." After study of the Texas InsuranceCode and the above mentioned definitions,we-are of the opinion, and you are advised that since the Legislature placed no'restrlctlons upon the term "all lines of automobile insurance," it is to be given the fullestmeaning, which Includes,but is not restricted to, the definition found In Art. 5.01. SUMMARY County Mutual Insurance Companies organizedand operatingunder Chapter 17 of the Texas Insurance Code and qualified to write casualty insurance statewide, may write all lines of automobile lnsurance on all motor vehicles.
Yours very truly, WAGGONER CARR Attorney General of Texas

APPROVED: OPINION COMMITTEE:
W. V. GEPPERT, Chairman
Joe R. Long Ed Bolding
J. S. Braeewell Paul Phy > APPROVED FOR TKE ATTORNEY GENERAL
BY: Stanton Stone L,1377