Untitled Texas Attorney General Opinion ( 1981 )

The Attorney General of Texas
December 18.1981
MARK WHITE
Attorney General
Supreme Court Building
Mr. W. P. Dams, Jr. Opinion No. MW-411
P. 0. BOX 12646 Chairman
Austin, TX. 76711 State Board of Insurance Re: Whether reports regarding
5121475-2501 1110 San Jacinto financial affairs of
Telex 9101874-1367 organization chartered under
Austin, Texas 78786
Telecopier 51214750266
chapter 20, Texas Insurance
Code, are public
1607 Main St., Suite 1400
Dallas, TX. 75201 Dear Mr. Dams:
21417428944
You have requested our opinion under the Open Records Act,
4924 Alberta Ave.. Suite 160 article 6252-17``. V.T.C.S., as to whether reports regarding the
El Paso, TX. 79905 financial affairs of a group hospital service plan are available to
Q15/533-3464 the public.
1220 Dallas Ave., Suite 202
Chapter 20 of the Texas Insurance Code provides that certain
Houston, TX. 77002 persons may apply for a corporate charter:
713/6500666
for the purpose of establishing, maintaining and
operating a nonprofit hospital service plan,
606 Broadway. Suite 312
Lubbock, TX. 79401
whereby hospital care may be provided by said
6061747-5236 corporation through an established hospital or
hospitals, and sanitariums with which it has
contracted for such care, as is hereinafter
4309 N. Tenth, Suite S
defined.
McAllen, TX. 76501
51216624547
Ins. Code art. 20.01. Corporations organized under chapter 20 are
"under the direct supervision of the Board of Insurance." Ins. Code
200 Main Plaza, Suite 400 art. 20.02.
San Antonio, TX. 76205
5121225.4191
section 3(a)(12) of the Open Records Act excepts from disclosure:
An Equal OppOrtunityI information contained in or related to
Affirmative Action Employer examination, operating or condition reports
prepared by, on behalf of, or for the use of an
agency responsible for the regulation or
supervision of financial institutions, and/or
securities, as that term is defined in the Texas
Securities Act.
p. 1402
Mr. W. P. Dave*, Jr. - Page 2 (Mw-411)
In Open Records Decision No. 158 (1977), this office held that a
chapter 20 organization was not a "financial institution" for purposes
of section 3(a)(12) because, inter alia, it was not the kind of
"insurance company" which the legislature intended to include in
section 3(a)(12). The opinion noted that the legislature intended to
include insurance companies regulated by the State Board of Insurance
within the term "financial institutions" in section 3(a)(12). The
conclusion with respect to chapter 20 organizations was based:
on Insurance Code provisions that describe the
purpose of the g=ow hospital service and
distinguish it from insurance companies. Article
20.09 of the Insurance Code states that 'such
.corporations... shall not be construed as being
engaged in the business of insurance under the
laws of this State.'
Following the issuance of Open Records Decision No. 158, article
20.09 was amended and the referenced provision omitted. Acts 1977,
65th Leg., ch. 383, §3, at 1038. In our opinion, the omission of that
portion of article 20.09, deeming chapter 20 organizations not to be
engaged in the business of insurance, indicates a legislative intent
to bring such organizations within the scope of the term "insurance
company." On the basis of the reasoning of Open Records Decision No.
158, if a chapter 20 organization may be considered an "insurance
company," it is also a "financial institution" for purposes of section
3(=)(12). Accordingly, it is our view that all examination, operating
and condition reports regarding chapter 20 organizations are excepted
from disclosure under section 3(a)(12) of the Open Records Act.
SUMMARY
Examination, operating, or condition reports
prepared by, on behalf of, or for the use of the
State Board of Insurance regarding an organization
chartered under chapter 20 of the Texas Insurance
Code are excepted from disclosure under section
3(a)(12) of the Open Records Act, article
6252-17a, V.T.C.S.
M A-R K WHITE
Attorney General of Texas
JOHN W. FAINTER, JR.
First Assistant Attorney General
p. 1403
Mr. W. P. Daves, Jr. - Page 3 (MW-411)
RICHARD E. GRAY III
Executive Assistant Attorney General
Prepared by Rick Gilpin
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Susan L. Garrison, Chairman
Jon Bible
Walter Davis
Rick Gilpin
Jim Moellinger
p. 1404