Untitled Texas Attorney General Opinion ( 1944 )

OFFICE OF THE All-ORNEY GENERAL OF TEXAS
AUSTIN
Honorat C. ?. Lookhart, Chairman
Joard of Ins;lr:-.naw
Comalselonere
Austin, Tsxarr
Dczsr sir:
on the above mnttcrm
r of July 12 and'your
ember 21 in responPe,
of withdrawn foreign
or p8yMcnt of &woos
d to anal dld writs aaoidsnt and
6 on Texss oltleene in additloa
som wrote only health or eo-
et?or both.
7064 such oorrpa-nisears also 1labl.e i'or the
gross prt.rAum tar on hrslth end accident pre-
niuns oollooted lrorn oltlzena of Texas atter
the oompanp withdrew.
Honorable ir. P. Lookhcrt., Page 2
")-%6ass OdPlfiw RCI AS t0 who are oitiaens
of Stat6 a8 aontcaplatad by t&a Artlola
this
4~sousso4 in your oplnlon In ths followlly$
feotual eituatlons, or vrrrlatlons 0r thea now
trsP0re us:
"1. The pol1oyholtl.r
18 s Tsxos oltl-
tan at detr ol’
of the polloy but
purohstae
later ~AQVJV~S hie resldenoo And oltlzensblp
to another stetc, wham be oontlnues his re-
QeWAl PMIGiW pa~SSt.8.
"2. The polioyholdsr is a oltlzen dP
mothor state at data of purabse of ths
jmlloy but lutsr faao~ts his nsldsnor and
oltloenahlp ts Texas, whore hc oontlnues his
renswml premlua payments. *
Artlola 706C, Varmu*s Annotate4 Revised Civil
Dtatutbs or Texas or 1925, AS lmsnbod by the Rots or the
47th Lbglsl~tcwe In 19U, prorIb t&t:
R.atlole 7064. Every lnsuranse oorpontlor4,
Lloyd*s or rsoipxvoals, an4 soy other or(isnlzs-
tlon or’oonoern transaoting thb buslnsss oi ilre,
imslne, merlnb island, aooldsst, orAdit, title,
llvsetook, fldollty, fguaraaty, mAr(lty, oasrulty,
or any other kind or aharaoter or lnriulluoo
business other than the buslarss oi llfs Iasux-
moo, nnd other then fraternal bsneflt amooia-
tlone, within thin stste at the time or rIlIw
its annual ststmmnt, shall ?aport to the Sosrd
of IosuranoA Comtklssiooors the gtiss amount of
proalums rroAIrAd upon property loosted ln this
State or on risks looat6d In thlk StAtA dur-
lug the preoAdln$ year, And daoh of suoh ln-
surano~ carriers shelf pay en onnub ttix upon
suoh gross premlm rsos$~ts do tollouews shell
pay A t5x or rour And five hundrddths (4.05)
per oat, provided that a&y ewh lnswimoe
oarrlers doing two (2) QY mom kind8 of Insur-
8nce busin6ss harsln rcrf'srradto shall pay the
tax huraln letled upoa its grosA prszalums
1-6ceire4 rr0m ba0h or 8~14 kln4e or businessi
!ionorsble C. ;‘. Lookhart, ;‘a~6 3
ynd thr Erosa ~rcialu~trsoeipts where rs-
fcrrsC TV:.In this 1~ sf;sll.be the total
5;ross amount of prem~wis r6oalvad on esoh
anh nocry ‘K1niY0T ‘lasuronoe or Fii* wr’ittea,
exoe&?t premilurs receIv& froo other lloensed
oonyaniss for rrlnsuranoe, lesa return pre-
mluais an4 dlvldsnds pald polloyholders, but
there&ml1 be no ,doduotlon for prsmlume pal6
ior relnsuranab. TGe ~rtms premlurp r’soeIpt8,
es above defined, sbell~ be reported end shorn
a8 tLe pr6mlwn reoelpts lo the report to the
hard of 3nsurenos Cosunlssloners by ths In-
mranoe oarrlers, upon the sworn ststemeats
of two (6) prinoipel offlosrs of suoh oer-
rlers. Upon reoslpt by the Board of ln-
suranoe Commissioners of ths sworn state-
mants, ehowlnp the gross premium rsoelpte
by suab laeursnae osrrlers, the Board OS
Insuranoe Coamlssloners sbsll asrtlfy to
the Sate Treasurer the wun0 oi texes due
by esoh lnsuranse aerrler, whloh tax shell
be ~14 to the Stat@ Treasurer on or before
the let of Uroh following, en4 the Treasurer
ebsll lssuo his reoelpt to euoh osrrler,
which aball be lvldenoa oi the payment of
suah tsxes. . . . . "
'*
tihetbrr or not fsrsigli lnsursn~s oompanles ool-
leot!ng prszilufcsrroa health and sooidrnti Insursnoe in
Texas after thsy ham wlthdrmvn tbersfrom are liable
for the peyI44nt of the ~~QAS pre&2Iw tax provided 103
by the above provlelon of the z3tatutrs ct Teras will de-
pend upon whstber ar not tbe oollroticm of suoh presaluas
OOIlatftUtS8 'tXAXlSAOti.U5th4 business Of AOOldellt and
health fnsuranoo n!thln this State*.
A slruilar question ~6 involved in the 0~88 ot
Comectiout XJtual Uia Inauranae Ctmpeny VI. Spprstley,
173. ::. 2. 608, 19 :iupres% Cou>t, 308, 43 I.. Tza. 869. ticid
life lnsurenoe eoo;peny bsd dons businam in the State of
Tsr.mssc44 over a parfod af YmrA, snd during that ti: (I it
had lamad tba polloy ldvolvsc; in aet4 suit. After Ias-Ine
ml& policy nnd aany others, it eess44 Isa&ig any nau
pclioias In said state snd withdrew itr;gtYierf%l AKAnt
fro25 t&s ;rtntc~r*nd notliXad tbe Stats lnarlrtraceComlseion
to t+t. I. s:‘foct but it did ocntinira to mnblw tts preaxiums
on the polloici that were ie.;ii& by it, lnol&~!rrg ths one
lnvalved ir, ruri~dBait issum? ts Ekx. &pratleg. IO p6SSing
tionorstIle0. T. Laokhart, Peg. I
upon whhstheror not tha ineuranoe oompsny we8 doing bu+
iness In the State in oontluuing to oolleot premiums
afCer it hod wltt~irrrwnfroa the Zitatt on the polialta
li;sueU by it befor, It wlthdfow, the Suyrelre Court. of
the Unlttd Stntus m&o tht tollowlnc: holdtyJ;r
"It cannot be mid with truth, HLI wo
think, tmt crs insurenoa aompsny cioss no
bu6insas within 6 irtutr IUh86 it have agent8
therein who are oontlnuoualy awaking new
rlak8 and it ID oontlnuin+3 to lmbb new
pollales upon suoh risks. Having eueoerd*d
ln taklna; rl8Jxa in tha state throw e num-
ber of yeara, It cannot br asld to ooase
doin& 3wlnesr therein when lt oeam8 to
obtain or ask for new rlskr or to lrsue new
DOliOh8, While Et the 8Wil th@ it8 Old
polh3f@r OontinU6 in for00 6Dd the pr.xd~~
therroa are oontinuoumly paid by the poller
holdor to an agcat rsrldlng in another
5ttlta,end who vnm OQOI the agent in the
atats where th6 polloy holdars rssldecl.
Tk:8 PsQtiOn OD th0 yort Of th6 OO~$MLy OOB-
stitutea doing buatnem wlthln the *tat& 80
Iear aa lo neoommy, within the aeanlng of
the law upon this oubjeot.*
Thlrr prlncip%e OS law wua @ppmted by the Unltsd
State8 Dlatrlot Court of the lrtartbernDlrtrlat or Torn8
in the onso of Hag&r, et al Vs. Soourlty Mutual Life In-
martmoo Coapsng, 246 Feb. 665, whioh involved the gues-
tlon of whether a foreign 110 lnourunoe ooopanp was still
doin& bunlncna in Tuas alter it hnd withdrawn Prom the
State by aontlnulng to oollsot premiuma on tha pollolee
outstandiag at the time it withdrew, an5 the court held ra
folloxa thereon;
"(3)
Notwlthrtcandln~ tba derendant with-
draw rrom business
60 rnr as wrltlng new poll-
0108 wee conoerned, it oontlnued to oolleot
preralums OR tho yoliclea outartsndlng. The
Dumber of policies ln Zoror the la& of the
ywsr 1907 ua6 1,143, end the mount of incur-
ISIQO, 32,649,606, and the number or pollole8
still OUtBtstldi?ii Catobar 1, 1915. wan 682,
iionortble L’. i;'. LOOkhBrt, PtlgS 5
and the 6mun: of inrurenos ~1,399,1&4.
The premium8 on tnls mount of ln?umnoe
were 6 aubhtaatisl amount., and their ool-
leotlon oonatltuted doing buafnesa vlthln
the St8 to.”
These hol4lnga were again afilmed in k”utua1
Iiaanrve Fund Life Laaoolatlonva. F'holpa,190 U. 6.
147, 23 SUP. ct. 707, 47 1. m. 987; am81 nbabn~
Llle Ina~renoe Company Va. Blreh, 200 U.S. 612,
26 Sup. Ct. 752, 50 I,.$4. 6201 Comerolal Mutual LO-
oldent Company Va. Davla, 213 U. 3. 245, 29 %p. Ct.
445, 53 t. Ed. 782.
In view 0r there holdlnga, It 16 our opinion
that lo oortlnuln(Jto oolleot naid premium doea
ooaatltut. the trBSLB8iOtlOD Of inB~8UOe buelneaa
rlthln thla State 80 88 to make raid oompanlea 116bla
for the griwa reoelpt tax06 provi?ed for by said
Artlolo 7064 under the vari;w r6tea prorldad for
therela fro-a the time raid law ma first pa6aed by
tha Flrat Celled Session OS the 30th Legislature in
1907, Page 675 or the kote 0r the Ragtu.ar 3aoalz.n 0r
raid Ls&ialature. 1. almller provlslon la round in
all or the amendmantc thsrco?, but dllfemit ratoa
have been aeaeaoed over different perlodm or time.
The genarsl yrinolplee or la* rolemod to
In our Opinion Number O-5438 cm befnp appllcebleto
forei- iir0 lntsuranoeooq~aaiea tnsorar as they ie61
with the right of the State to Smpoae oondltlona
upou auoh oorqlsnlee,:Aen they enter Texso in order
to do 6n lnsuranoe buslneee therein are al60 ap-
plloeblc to f’ore&n 6oclCLsnt and health lnauranca
OQ?~panhB thht enter th:a State ror the purpose of
dolr@ business here&, :a1 rsanh oompanies will be
presume~i to have sooapted ~11 condltlona impo66d
upon them by the lark of thle SfxEe and will be
bound thereby.
Honorable G. F. Lookhart, Pnge 6
State oltlzensblp la gorsrned by that part OS
the provlslonr ol the Unltab States Con~tltutlon, mend-
aont 11, Sootloo 1, wbloh read8 aa follorcl:
"hll person8 born or natumllrsd in the
United Statca, an3 aubjtot to the jurlrdlatlon
thereof, are citizens of the Ualtsd States and
oi the State wherein they reside. . . -
State oltlzoa8hlp, thorrtore, depend@ upon
realdenoe. The term w”fe614@*baa reiersnoe to the *dohi-
oll.eW or wlegel residenoe* of the peruon, a atatament of
the dlrtlaotlon betwren satu@l reaidenor and domlolh
havlag beea quote4 rl,th 09tprorhl by our Suprena Oourt in
the oamo oi Peoor t 1. T. Ry. Do., et al, 1. Tbompaoa,
167 8. ‘II.801, la rollowrr:
*‘Re*ldoaob* aenas llrlng in a par-
tloular looallby, but ‘domloilr* maana llr-
lag la that loo&it2 with the intent to
sbkr it a tlrad and psrmmnent home. Real-
dono* limply requirea bodily preoaaoe l8 an
lahabltant la e glran place, whllr domlalla
ragulna bodily preaanoe In thet plaoo and
also ‘an intention to make It CUM’S dcd~llr.~
Irlatauerv. INOT, 156 ARD. Dlt. 591, 1.u
N. Y. Bupp. 9531 In re Kmwoomb, 192 Rawle 1.
238, 84 N. 2. 950.
In tho ease oi Obloago cad Rorthuerrtem Ry. Co.
f. ohle, 117 u. 9. 123, 6 SUP. ct. 632, 29 Ler Ehttlom,
837, the Supream Oourt ot the Ualtsd Statea wa8 deallag
rith thm rlgbt of a party to bring a milt in a federal
court in Illlnols wltbla 6 row reek8 attar he bad nored
into said atcito, and the ciourt he14 that the oaly que6-
tlon wa8 whether ha had crotuallg and IA &toadtelfh given
up hia roraer oltiaenship and aooulred a sew oltlzsn8hlp
In Illlnolr, before the suit was brought, end the iollow-
lng obarss rss approved na bnviag bsra a oorreat state-
ment of the law:
“12. Row the
olnt that you ara to
dsslue, gentlemen, fe thlr: did ths plaintiff,
Ous. 8. Gble, at sury time leave the Stets ot
Xowa for the purposs of taking up, lotually
en4 in cioodfaith, hle realdenoe aad oititen-
ship la Illlnol~‘i Now, 3 use the word remldenoe
HOAorsblO 0. F. Lookhbsrt, Peg@ 7
6kG5AiA~ this: it would not be sillrlsleat
merely to show that ha went and resided in
the sense or living IA Il,llnols. kesldeaoe
is erlWno~ of ths oltlrsnship. You ore ul-
tlmctely to find whether ha bsoame a oitlzsn
of Illlnols. IA deoldlng thst Guestion you
have a right to consider what h6 did in the
matter ot residence; that is, where ho aotually
llrsd; the plaoe he oooupled, whst we ordinarily
maan by the term *llrlng.* Now, it is olslslad
on tba part of Ohls thet he went to Uhloago in
Novrabsr, 1863; that it was his intent to rs-
,.
. dmova to the Ststs or llllnols, an4 with tha
purpose or ooapletlng his education by going
through this sot001 at JaAesVille, nnd then
pursuing his tooatlon In life ln tha State oi
Illlnolr. low, if ho did in good tafth leara
the State ot Iowa give up the oitissnsbip
here, Ing to Chisa o Illinois,vilththe idaa
oi t&krng up his oit L’onship them, dld
sctuslly do that ia aood faith, althou@ he
may at thrt tine b.av* had it in his mind* end
hb did lotuall7 &o to Janesrills to oomplste
hla eduoatlon that woulb not dsfoat his ao-
qalring his o~tlrsnshlp in tha atate of IlUnol~
at the time he sotusl&7 went there in Horembsr;
prorldsd you rind, ropemb*r, gentlemen that
he had the latent at that tlesn, boas fide,
6etud iAte,At of Settli.Ag in IlliAOiS. NOW,
you me to detamixw this, under the svldenoa
that has:bson submitted to you; pou aae to
determine whather st thst tlmeW he then had
the honest iAt8At Of changin& his reai6wIOer
If he did, and hs went ovsr tbrra rlth that
purpose, with that lAteAt, and remained ,%A
Chloaao for whatever time the evldenoe shows,
sons two or three weeke, It is for you to
doter&m the question 6s to that. If that waa
his objeot and iAt4At it would JWtify.yOU
in Tinding that be had eequlrod a oltlteAehh:p
there. The faot that be then went to J~AWI-
~111s to oomplets hla s~uoation -would AA mDFs
defbst his oititenship in IlliAQiS than it
would defeat his oltlzenshlp in Xmva if he
bail still retained that oltisooship.
*It then remains L'or you to am3~iab
the otjeot and intent thet he then had.
Hoaorabla U. P. Lookhart, Pago 8
“13 i NOW, it i@ 8Oat,tAm OA th6 Qhrt
of the defendant that be did not eoquire
oltlzenbhlp In Chloago imtil ho rent there In
Merch, 188l+, miter he had oo=pletad him sohool-
Ing In Janeevllla. Now, If he dld not, ir
that ~8 the ilrst tire thot he aotunlly went
to Chioago with the intent to ramoln there and
take up his oltlrenshfp and hia reeldemo
there, why then you woulb have to find that
that wes the tlae that he lost his eltizen-
ship In Iowa and acquired it In Illlnolr.
Therefore, em I say, the questton 18 whet wa8
him Intent. By way or lllustratlon: ii
when hb went to the City of Ohloego In
Novcmbsr, 1883, his object lnQ purpose wae
dmply to go through Ghloago to Janesvllle
to oogplete hla ld@oatlon, with the Intention,
$0:~ the In the luture, after he hsd oom-
pleted his eduoatlon or going baok to Illlnol8,
then he would not loqulre hls oltloenshlp until
he aotuslly went there; but It, when he went
in 1863, he went alth the Intentlm of
actually ohsndng hi8 resldrnoe and coquir-
$ng a oltIzenah?p in Chioago, Illinois, then,
If you rind that to be the reot you are justi-
fied In rindlag that at the tlrne he ohanged
hls oltlzenshlp within the meanln(i or the
queetlons lnrolrsd in thir oa8e.”
In the ease or Uorri8 Vo. Gllmer. 129 U. 8. 315,
9 sup. ct. 289, 32 Law Xd. 690, said court made the follow-
iAg 8tetWAeAt as to rtate cltlzenship:
“It 18 true, as ocntend8d by th8 d8-
t endent, that IIoitlzen of the iTnltsdStete8
can lnetnntly tranrfer his altlzenehfp from
one State to onother (Cooper f. Oalbralth,
3 xssh. C. C. 546, 5541, and th&t his right
to sue In the oourte or tbo Vnlted Stat08 28
non@ the le88 beoauee his Ohtinge Or 605iCtle
was Iaduoed by thn purpose, whether avowed
or not. of Invoking for tha proteotlon0r
ala rI&ts, the jA&dIOth3A of a fe,deral
oourt. A.S mid by Kr. Jumtioe Story, in
Brlggs v. Frenoh 2 sum. 251, 256, *If the
new oltlzenshlp 1s really and truly acquired,
his rI&ht to sue 18 6 lbgitiImt0, oonmti-
t;ltIonsl, and legal OOROeqUOAOO, AOt to
Ce Ispeeohed by the motive of him raarorel.*
t
Honorable 0; P. LoOkhart, Page 9
Manhattan L. 1A8, 00. v. BrCWJhtOA, 109
U. 6. 121, 125 (27rU76, 880); Ions8 v.
zsi”ue, 59 U.S. 18 Bow. 76, 81 (15:263,
There mat be an, aotun1, not pI%teAded,
ohen& of domloile; IA otber words, ths re-
mOVd xIW#t be h ‘red OAO, 8Ai50 mHAeA&i, nAd
AOt merely 08teA8ibh.' Oa8e v..Clarke,
5 oonour in order to erreot such a ohenge 0r
doalollo aa OOA8titUtW a ohan@o Of AitiZOA-
ship. IA EAAis Y. Bnith, 55 U. S. 11,Mow.
600,42) (l/+:172) It wea se14 that *k re-
morai whloh dOe8 not oOAt+mplete M absenoo
from the fozaier domicile SOS an IAderiAite
end uncrrtain time ir not a ohange Of it,*
and thet while it wa6 diffioult to lay d0wxi
eAy rule imder whloh every iarztanoe Or
reoldenoe oould bo brought whloh may make a
doaiclle oi’ ohoiao, ‘there muat b8, to
ooA8tttute It, actual rbsldenaa In tbe plaoe
with the intention that it 1s t0 be s prlnol-
pal and pswanent r6sldenee.*”
IA the oeao of Kid-Continent Flpell~e Go. v.
Whltsley, 116 fed. 2nd. (971, the CIrouIt Court Of AP-
peals for the tenth olrouit had before It the question
Of wðer or AOt plaiAtiff ha8 abaAdOAed hi8 residenoe
IA Oklabonm and establlahed realdenoe LA California at
the tine he brou&t the ault IA gueatlon, the faota show-
ing the su:.t warn iA8titiIted in California oxi February
6, 1939, and t&t he had loft Oklabome In Deoembsr, 1938.
The Court held that, if plaintiff WbAt to C6IlifOPAia in
Deobmber, 1938, with s present iAtc:Ation anyi pUrpO8e
of ramInlA& and sstnbllshlng hls m8ideAOe thsre, he
ChorsujmA beomne snd we6 at ths institution of the suit
a cltlzen of that stata, vlthIA the msenint~,of the firet
gl;r;“raph of SbOti;?A 24 of the Judloicll Code, aa mended,
5. C. h Seotloa W whloh grovl:lee ror suit In
fadi-el court’kero there i8 diver8ity Or oltieqA8hip.
Therefore, as oontemplsted by the articles &IL-
ocresed in our ~~IA~oA Nuatber O-5438, where the polloy-
holder is a Term oltlzen et the date of the @Archare Of
tba polIoy , but later rem3vc6 hia rsEIdeAOe and citizen-
vbip to another stete In sccurdcnoe wl th the rul.ea of law
above rtferred to where he continue8 his reAWa1 paymAtS,
B&orclbie 0. P. Lockhart, Pa’age
10
Shers the polloyholaer 10 a aitlxan of another
state the data of tbo >Uroh666
at of e polloy, but lot&r
raaov4s his resiaenoo aad oltlarn8blp to Texas la aQ-
ooraenor 4th said ruloo of law where he ooatlnues him
ronswell prelalua paymente (4 uoh payment.8 would be 8ubjoqt
to said (iros* premium tax.
vimalraot your rttention,howrtsr, to the mot
that them is a altfercnos in the prorlslons of the atetuts8
flxl~($gross recelpte toxea on the prbntuaa eolleotra by
rorelgn llra lnmuaooa oompanirr ma tbooe 00iieot0a by
foreign aooldent an& hoelth lnrorrraoe aompmnl~n, ln that
th6 famm la bawl uxton prmlum8 oollootrd rroa oltlzerm
or thla Stats (Artlolm 4709 lnd 4772) ana the latter
1~ beal upon the &mm waount of prdins rsodrrd upon
rlska looat6a in thlr~atatr (Artlob 7066).
Trudln,g that tbir ratld’aatorily snmrars four
lnqulq, we remain
Vrry truly yours
ATTOiWEY GEIWRRL OF T]ETAS