Untitled Texas Attorney General Opinion ( 1939 )

OFFICE OF, THE ATTORNEY GENERAL OF TEXAS
AUSTIN
6in art out the
pertiaent parta
UP an rpplioa-
oorpomtion to
naslwr1tsr.*, In-
a ahartar ior the pur-
le 1304b, 2. c.. 3..
. .
Bon. Claudo A. William, Pago 8
“It io the oplnlon of thin _ofiioo
- that
should we grant thl8 ohartar and TholPaOS.
Falvoy agrees to pay to the OOrpOratlOn a
oroontago of hi8 oommi~sion that ho would
Ppso iaoto forioit hio right to lot a8 the
Agent ot anlnouranoo ocfapany and the Toxoa
Stat. IA?. Insuranoo Company would bo oubjoot
to having it8 right to do buoin080 forfoitod
and if either one or both of thoro thing8
ooourrod, tho interest in the truot ootato
horolnabaro roforrod t0 would br ronderod
worthies..
Ylf Vhomos 8. Falroy agrees, by oontraot,
to pay to tho proposed oorporation the diri-
denda, whloh would othormloe go to tho unit
holder8 In tho hurt Eatato, would owh aot
;;o& violution of Artiolo 8064, R. c. S.,
I
Artiolo SO61, Rovired Oivll Statutes of Toxaa,
19E?5, roads t
*No oorporetlon or stock oanponp ohall
be lloansod or grontod a oortitloato o? au-
thorlty 08 the agent or reproaantativo of any
life in6uronoo company In mlloitlng, rolling
or In any manuor plaolng llfo inauranoo poll-
oirr or oontroots in tho State. No llfo ln-
ouronoo aonpany shall bo granted 0 oortlfloato
of authority to trandaot buolness in this
Stats, which has or lo bound by any valid sub-
sisting oontraot with any other oorporatlon,
by virtue of whioh euoh other oorpontlon is
sntitlod to roooivo, dlrootlr or lndireotly,
any poroantago or portion of the premium or
other inoomo BI ruoh life lnuur no8 oompan
ori&{ No poroon shale be grantog
a oort
for Y t Poat8 of authority a8 the gent of any
lif t’Mwa~
pa S~MtYB 8W’t iinto ““ii P@;
on ml0
nouronoa oompaw, by virtue of whloh ouoh other
OCRoration is ontitlod to rooelvo, dlroetly or
lnd Prootly, arq ocsnponoation oarnod by him a8
agent ior ruoh llfr inmranoo ocmpany, or aunt
poroontago or pcrtion thorooi for any period.9
95
Hon. Claude A. Wllliama, Pa@ 3
The above artlols was taken f-ran Senate El11
E91, Goneral Law8 of ?0Xf18 1909, pago 192, whloh bill
was 6 let&hy moaeuro prov i ding for the lnoorporotlon,
ra@atlon and su~ervVilon of life, aoolUon8 and health
oag0niea.
ft appears from lnto&atlon furnished this
office thr:t the Texas State ?futual fife Insuranoe Company,
after its organization, entered into a aontraot with Dr.
Thou. 5. Falvop during the year 1934, by the term of
whhioh Dr. Fslvey was &vm a twenty-pear general ngonoy
oantraot: that Thereafter, tha Texas State Life Insuranoo
Company was toned and tho lncurenoe of Texas State kutual
life Insuranoo Cemmny was relnaured by suoh new company
and by approprlato aatlon the Falv’oy oontraot beoame an
obligation or ths Texaas Stats Life Xnsuranoe Company.
fn the Interim, Dr. Palvep oreatsd a “trust aetate” and
8016 woe.rtlfloater or interest in and to Taxas State Life
~ndorzrrltors~. The certificate 80 sold had as their
l;la~;i;;l basla a one-half interest in and to ths Falvey
.
ft 1s urged by tho sttoxney for the propsod
oorporatlon, tbo "~4xas State Llro Underwriters, no.”
that "at no time and under no oondltlon is the general
agenoy oontraot to bs transferred or delivered to the
n4w ooqoratlon, this being a ooatraot held independently
by Dr. lalveyW. Eow OM it ba urg6d that auoh contract
In being held lndepondontly by Dr. Falvop when he ha8
issued certiffoatce or Intereat baaed upon one-halt of
thb lnoomo provided by suoh contraot to variow and sundry
persona who now propose to ~44 suoh eertlilortes a? lntsr-
sat in peymont of @hares of atook in a neu oorporatlon?
Can It be urged that Oh4 now aorporatlon, by virtue of
the ownership OS tho oertltloator of lntoreot In and
antler ouoh Falvep oontraot will not be "rntltled to ra-
oelve, dlrootly or lndirsotly, any oomynratlon earned
by him es agent for euch lif4 ineuranoe oonpan;lR?
It 1s the opinion oi thlr dopartmnnt that the
now oorparatlon, If ohartorod, would be entitled lndlroot-
ly to rooelvo a portion of the oomponeatlon provided br
the Palvey oontraot In vloletion ot Artlolo 5064, aupra.
!Prustlng that thlo satl8faotirilg answer8
your lnqulry, we are
Very truly your8
LArAW