San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1925-08-02
BIG INSURANCE
FIRMS MAY
RETURN
Moody Holds Companies
May Lend Money in
Texas Under Laws.

AUSTIN, Aug. Permission il
granted to the big life insurance com
panies that withdrew from Texas II
years ago on account of the enact
ment of the Robertson insurance law
to return to Texas for the exclusive
purpose of lending money, without
having to comply With the compulsory
investment feature of the Robertson
law, held Attorney General Dar
Moody in an opinion released Satur'
day evening to John NJ. Scott, com
missioner of insurance.
The attorney general, however, doee
not pass on the question of the liabil'
ity Of the insurance companies fol
taxes that may be due the state on
premiums collected during the period
that these companies are out Of the
state, or tn eaccrued penalties which
now runs into several million dol
lars.
QUOTES OLD LAW.
Authority for the ruling of the at.
torney general is based on an act
passed by the Legislature in 10Oo
which authorizes a life insurance
company to enter the Texas field for
the purpose of lending its funds in
this state without being required to
secure certificate of authority 70
write life insurance in Texas. This
law is known as urticle AGO.
I'VE think there can be no doubt
of the intention of the Legislature in
passing this statute" said General
Moody's opinion. 1T was evidently
considered desirable in the interest OF
the public to permit life insurance
companies to enter the state for the
purpose of lending their funds"
Those big life insurance companies
that desire to return to Texas for the
only purpose Of lending money in the
state, will have to obtain permit
from the secretary of states depart
ment, and such companies will not be
under the jurisdiction of the depart
ment of insurance, the opinion stated.
SILENT cN TAXES.
"In view of our holding that for
eign life insurance c6apany," con-
tinues the opinion, which at one
time was transactsng a life insurance
business but withdrew owing no taxes
TO the state at the time of its with
arawal and which now desires to Sc.
core a permit to lend its funds in this
state as provided by article 400 but
not TO engage in the insurance bust
ness, will not be under the super.
vision Of the commissioner OF insur'
ance but under the charge of the sec
rotary of state, and subject to all the
laws relating TO foreign corporations
engaged in lending business in this
state, we deem II unnecessary to de-
termine the liability Of such COM
psnies for any taxes claimed by the
state to be due from such companies
as life insurance company. We ex-
pressly but respectfully decline to an
swer that portion of your inquiry"
This question was brought to the
attention of the state officials
short time ago by Judge W. l.. Hill Of
Houston, who stated that the New
York Life, The Mutual Life, and
Equitable Life. all of New York, the
big "three" of the % companies that
withdrew from Texas when the Rob.
ertson law was enacted in 1907, want
ed to come back TO Texas to lend
money. Should these big three com.
panies come back to Texas to lend
money, it is claimed that 1t will mean
very cheap money for borrowers who
have the collateral.