No. V-1099 (1950).

Case Date:August 28, 1950
Court:Texas
 
FREE EXCERPT
Texas Attorney General Opinions 1950. No. V-1099 (1950). 1August 28, 1950Hon. George B. Butler, ChairmanBoard of Insurance CommissionersAustin, TexasOpinion No. V-1099Re: The legality of an amendment to the charter of a farm mutual insurance company organized under Article 4860a-20, V.C.S., to permit removal of its home office outside the county of its authorized insurance activity.Dear Sir:You have requested the opinion of this office with regard to a farm mutual insurance company, organized under and within the definition set out in Article 4860a-20, V.C.S. Such company, under authority of its original charter, established its home office in the county of its authorized insurance activity as provided in Article 4860a-20, Section 15. It now proposes to amend its charter so as to authorize the relocation of its home office in another county outside the area of its authorized territorial limit of insurance activity under the indicated statute. In a conference with the proper administrative official of your department, it was determined that your questions submitted may be stated as follows:
(1) May the company amend its charter?
(2) May the company amend its charter in such a manner as to permit relocation of its home office in another county, so as to authorize it to write insurance in the county of relocation if such county of relocation is outside the original territorial limits for writing insurance prescribed in Article 4860a-20, Section 15, V.C.S., and prescribed in the original constitution, bylaws and articles of association of the company? County mutual insurance companies, as initially defined, authorized and regulated in 1937 by the 45th Legislature, which first passed the Act subsequently2codified as Article 4860a-20, V.C.S., were clothed with most of the essential characteristics of the type of mutual insurance companies authorized to write insurance other than life insurance, as set out in Chapter 9 of the Insurance Title in Vernon's Civil Statutes, except on certain enumerated risks. Since then they have operated with but slight statutory regulation until 1947 when the Legislature amended Article 4860a-20 and provided more detailed exactions of such companies. For one thing, it then defined a sub-classification of county mutual insurance companies by providing that those maintaining more than 60% rural risks...

To continue reading

FREE SIGN UP