Opinion ID: 611056
Heading Depth: 2
Heading Rank: 1

Heading: Organizational Test

Text: 8 The general nature of the provisions in IIAH's Articles of Incorporation 5 do not specifically contemplate sales of insurance to public entities. No reference to public insurance trade or commerce is made. The Articles are general and beneficent in nature, conceiving exempt purposes for IIAH which are intangible. IIAH's bylaws also do not contemplate the sale of public insurance but they do provide for the creation of the AAARC, which has the authority to supervise other public insurance activities. Its primary function is to assign public accounts to qualified members. 6 9 Further, when IIAH applied for exempt status in May 1974, it was required to attach a brief statement describing the specific purposes for which it was formed, without referring to the Articles of Incorporation or bylaws. IIAH stated that [t]he corporation was formed to ... [o]versee the writing of insurance for public authorities to insure that such authorities are receiving the best insurance protection and service available. 7 10 In sum, the specific exempt purposes visualized by the drafters of IIAH's charter, bylaws and exemption application are altruistic, not commercial in nature. The actions anticipated are to oversee, to supervise, to assign, not to sell, to trade, to profit.