Untitled Texas Attorney General Opinion ( 1957 )

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March 26, 1957
Hon. John Osorio, Chairman Opinion No. WW772
Board of Insurance Commissioners
International Life Building Re: Whether Article 14.61 of /
Austin, Texas the Texas Insurance Code
authori5e.S a mutual ~assess-
paant 855ociatiOn to Yriin-
sure* one 0r:more of its
groups, and at~th5 same
time continue its corporate
exis+ce by the retention
of another group, club or
c&as which is not made
tibject to the reinsurance
Dear Sir: ag,reemen$
You have asked our opinion as to whether. a mutual assess-
ment association is authorized by Article 14.61, Texas Insursnce ,Code, to
“reinsure” one of its groups, clubs, or classes, and at the same time con-
tinue its corporate existence as a mutual assessment association by the re-
tention of another group, club, or class. which is not made subject to the
“reinsurance” agreement.
A mutual assessment association is an association of indi-
viduals or group5 of individuals fn tbi ,busiaess ,d q+adly protecting or
insuring their lives by assessmsnts made npoe ruch members No stat-e-
wide mutual assessment association has been created since 1933, is the
Legislature saw fit at that time to p+iblt tlmfprtber’forqnstioa of such
companies. Acts 1933,43rd Leg., C+, 24S,