Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1912-08-12
TEXAS AND THE INSURING
PUBLIC.

San Antonio, Texas, | feel 1t my
duty to make reply to an article ap-
pearing on the front page of the
Daily Sentinel under date of August
9th, entitled, Texas and Corpora
tons"
That the in.uring put'::c might be
more correctly informed, I! give the
letter Of Frederic G. Won Rosenberg,
while commissioner of Insurance
and banking, to II. P. Horribly.
IUvalde. Texas, dated Austin, Texas,
Dec. 10, 1910, as follows:
Austin, Texas, Dec. 10, 1910
Department Of Insurance and Bank
ing-H. p. Horribly, Uvalde, Texas;
Dear Sir-Replying to your letter
of the 18th instant, | beg to say
that, in my judgment. a corporation
chartered under the laws of this
state to do any other kind of BUSH
ness than an insurance business
could not lawfully insure its prop
erty in a reciprocal or mutual asso-
citation which is unincorporated FOR
the reason that if said company
should insure its business it makes
itself liable as an insurer of the
property of all the parties connected
with the said unincOrporated mutual
insurance association, which would
be contrary to the authority given
in its charter. AS | understand it,
everyone who takes a policy in such
a concern becomes himself or itself
liable for all losses of any other per-
son and of every other person insur-
ing in the concern. Your attention
is also directed to chapter 1913, Acts
of the Thirtieth Legislature, page
249, under which any one who is a
member Of any such unincorporated
concern may be sued, and if a judg-
ment is obtained against him he
would be liable for the entire claim
sued upon.
''In my Judgment a mutual insur-
ance company organized under the
laws of this state and properly char
Itered as the insurance laws require,
would be authorized to insure the
property Of any person or Of any
corporation applying for insurance,
and the above remarks do not apply
to properly chartered and properly
organized mutual insurance compan-
les under the supervision of this de-
partment. Truly your, FREDERIC
e. Won ROSENBERG, Commission
err"
Also extract from latter from
Commissioner b. L. Gill, dated Aus
tin. Texas, May Sth. 1911. to Mr.. A.
D. Adams, Waco, Texas, in which
Mr.. Gill in speaking of the State
Mutual wrote:
lnlo 10 n OOl pOA "HN 49,
policy holders of the company will
be held responsible ONLY for the
payment of the premiums which
they agree to pay as may be ne,-
essary to meet the obligations # W
Company.
Every policy holder WILL NOT
be held responsible for the losses o.
every other policy holder, as is the
case with unincorporated associa-
tons
From the above it will be seen
that duly incorporated Mutual Com
panies who are operating under the
laws of the state of Texas, may leg
ally insure the property of any cor
poration or individual witEou, per-
sonal liability Of the insure"
The State Mutual is NO an a.
sessment company. but instead, col
lects the full premium according to
it's schedule rates, on delivery OF
policy. Fiftey per cent OF which is
placed in loss-payable fund for
the payment of Losses. 10 per cent
is placed in reserve fund and must
be put up in securities with the
Commissioner Of Insurance in man
ner as dictated by State law. Az
per cent Is placed in expense fund.
which is the limit. under the law
that may be used as payment Of eX-
penses. Money in this fund, moi
used as expenses, at the end Of each
year i transferred to the reserve
fund. Any unused part Of the los:
payable fund. not used for the pay
ment of losses. is transferred TO the
reserve fund until such funt
amounts to one hundred thousand
dollars. after which time the unused
part reverts to the policy holders. il
the form Of a dividend, at the enc
of each year.
The State Mutual broke all prey
ious records last year in the amount