Untitled Texas Attorney General Opinion ( 1962 )

THEA~T~RNEYGENERAL OF-TEXAS AUSTIN 11. TEXAS WI& WILSON ATrORNEY GENERAI. June 6, 1962 Hon. William A. Harrison Opinion No. WW- 1341 Commissioner of Insurance International Life Building Re: Whether an application for Mineola- Austin, Texas Wood County Local Mutual Aid Association was pending before the Commissioner of Insurance or the State Board of Insurance at the effective date of Article 22. 21. Dear Commissioner Harrison: In a recent letter you requested an opinion of this office whether an application for a temporary or other certificate of authority was pending before the Commissioner of Insurance or the State Board of Insurance on August 28, 1961, the effective date of Article 22.21 of the Texas Insurance Code. Article 22.21, prohibits the organization of a local mutual aid association or local mutual burial association pursuant to Article 12.05 of the Texas Insurance Code subsequent to August 28, 1961. However, the prohibition would not be applicable to the company or association for which an application to the Commissioner of Insurance or the State Board of Insurance for a temporary or other certificate of authority was pending as of August 28, 1961. Article 22. 21 reads as follows: “From and after the effective date of this Act, no local mutual aid association or local mutual burial association may be organized under and pursuant to the provisions of Art. 12.05 of the Insurance Code of Texas. The provisions of this Art. ,22.21 shall not, however, be applicable to: (1) any company or association which holds a temporary or other certificate of authority at the effective date of this Act; or (2) any company or association for which an appli- cation to the Commissioner of Insurance or the State Board Hon. William A. Harrison, page 2 (WW-1341) of Insurance for a temporary or other certificat,e of auth- ority is pending at the effective date of this Act. Added Acts 19,61, 57th Leg., p. 345, ch. 180, 0 1.” The pertinent facts involved are these. On August 11, 1961, Mr. J. W. Falvey, Jr., Attorney at Law, of Longview, Texas, re- quested the reservation of three names for local mutual aid societies: Wood County Local Mutual Aid Association; Mineola Local Mutual Aid Association; and Mineola-Wood County Local Mutual Aid Association. On August 23, 1961, the Commissioner of Insurance informed Mr. Fal- vey that the three names had been r~eserved for the organization of a new local mutual aid association. The necessary papers for the appli- cation and organization of the local mutual aid association were enclosed in the letter of August 23, 1961. By statute and by administrative rulings the following materials comprise an application for a local mutual aid association: (See Articles 12.05 and 12.14 of the Insurance Code). 1. Application for Permit (Form No. 1) 2. Letter setting forth facts showing territory which can support the proposed association. 3. Articles of Association in triplicate. 4. Constitution and By-Laws in triplicate. 5. Policy forms in duplicate. 6. Application for policy in duplicate. 7. Rate Sheet in duplicate. 8. Application for Reinstatement in Duplicate. 9. Organizers’ bond. 10. Fees in the sum of $21.00. None of the above items were received by,the State Board of Insurance or the Insurance Commissioner from the organizers of the local mutual aid association prior to or on August 28, 1961. It is clear that an application was not pending on,August 28, 1961, when none of the documents comprising an application were on file with the State Board of Insurance on or before August 28, 1961. The appli- cable statutes and administrative rulings do not provide that the reser- vation of a name for a local mutual aid associationis a part of the Hon. William A. Harrison, page 3 fWW-1341) application for such an association. SUMMARY An application for Mineola- Wood County Local Mutual Aid Association was not pending before the Commissioner of Insurance or the State Board of Insurance at the effective date of Art. 22. 21. Very truly yours, WILL WILSON Attorney General of Texas BY Bob E. Shannon Assistant BES:lmc APPROVED: OPINION COMMITTEE: W. V. Geppert, Chairman Howard Mays Iola Wilcox John Reeves Marvin Thomas REVIEWED FOR THE ATTORNEY GENERAL BT: Leonard Passmore