The Brownsville daily herald. [volume] (Brownsville, Tex.) 1897-1910, 1907-11-30
DEPARTMENT
OF INSURANCE
Excludes Special Contract In
surancc Companies.
No More Special" or Board Con-
tracts of Insurance May Be Sold In
this State After Present Licenses
Expire.


partment to refuse to relicense any
company which purposes to con
6nue to make use of any of thes,
plans of writing insurance, " sale
Commissioner of Insurance Low,
in an interview at Austin a few
days ago. Il am today sending
out to such of the companies doing
business in this State a letter
advising them of the position o
the department. 3"
The letter which Commissioner
Love referred to is as follows:
You are hereby respectfully
advised that all life insurance com
panies desiring to procure licenses
to transact business in the State oil
Texas for the year 1908 will be re-
quired to accompany the applica-
ton for such license and the an
nual statement of the company for
1907 with full and specific state
ment, signed and sworn to by the
president and secretary, showing:
1. Whether or not it is the
purpose and intention of the COM
pany under the authority of license
applied for to write or sell or to
authorize its agents to write or sell
what are commonly known as
special or board contracts, or
special income contracts, or any
contracts of a similar nature,
whether written in or as a part of
the policy of insurance or separate
ly therefrom.
p. Whether or not it is the
purpose and intention of the com
pany under the authority of the
license applied for TO sell or to
authorize or permit its agent to
sell shares of stock in such COM
panies or in any agency company,
securities company, or other cor
poration whatsoever, as an induce
ment to or in any kind of connec-
ton with the writing of policies of
insurance.
g. Whether said company is
bound by any contract or agree
ment, either directly or through
any of its agents to pay any por
ton of percentage of its premium
income to be collected within this
State under the license applied for
to any agency company, securities
company or other corporation or
association whatsoever, or to any
one for the use and benefit of any
such corporation or association.
You are respectfully advised
that this information is desired for
the reason that this department
will not grant or renew a license
to any life insurance company
which purposes or intends to write
or sell or to authorize its agents to
write or sell such special con
tracts, board contracts. or
special income contracts, or any
contracts of a similar nature,
whether written as a part of the
policy of insurance or separately
therefrom, or which shall sell or
authorize or permit its agents 20
sell shares of stock in the COM
pany or in any agency company,
securities company, or other cor
poration, as an inducement or in
connection with the writing of
polices of insurance or which
maintains an agency contract
with any agent or agents doing
the same, or which is bound
by any contract or agreement,
either directly or through any
agent or agents, to pay any portion
or percentage of its premium to
any such corporation or to any one
for its use and benefit.
And the doing or permitting
any of these things by any COM
pany after it has beer licensed for
the year 1908 will be regarded as
ground for the forfeiture of such
license.