Texas Attorney General Opinion: O-4587A Page: 3 of 8
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the risk of lose is very small and In which the premiums are
very large in coparison with loss payments, it is unlikely
that the Legislature intended suoh a high degree of regulation.
Moreover, it is common knowledge--and Article 1302a
speoitically recognizes--that companies doing a title insur-
anoe business conduct many additional aotivities. Moat of
these additional activities, if standing alone, would not be
regulated by the State. If Artioles 4705 and 4706 were to
be imposed on those soopanie, these activities as well as
the title insurance business would be subjected to extreme
regulation. It seems reasonable to believe that the Logise
lature intended that the reserves established by Sections 6
and 10 of Article 1302a should isolate a portion of the assets
of these companies for the protection of the holders of title
insurance policies, and that the remainder of saoh assets
should be free and unenoumbered for se in the other activi-
ties of such companies.
Finally, our conolusion is strengthened by the es*
tablished practice of your department. Although your original
opinion request asked "*, . is our constrtion c oorreot that
(Article 1302a) makes the provisions of Artiole 4705 applias-
ble ,. ." your letter of N4ovember 4th states that you have
never considered Artioles 4705 and 4706 applioable to title
insuranoe companies and that any intimation to the contrary
in your original letter was "erroneous and inadvertent". Ao-
eopting your osat recent letter as embodying a corr*et state-
aent of your departmental practice, it is agnifioant that
during the thirteen years since the passage of Artiole 1302a
the Legislature has never seen fit to question or to alter
your practice, Such an established construction when coupled
with complete Legislative silence and, presumably, acqules-
oene lends weight to the opinion above expressed,
Question No. 9 in Opinion No, 0-4567 was copied
trom your supleAmental request for opinion and reader as follows:
"In studying the schedule of assets soona
paying the affidavit of the inoorporators, whioh
assets will be tendered in payment of capital stock
and earplus (before actual filing, the charter will
probably be rewritten so as to divide these assets
up into a minimum of 100,000 capital stook and
$5,000 surplus) we observe that the assets are af-
firmatively disclosed to embrace (a) fee titles to
Honorable 0. P, Loekhart, -hairman, Page 3
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Texas. Attorney-General's Office. Texas Attorney General Opinion: O-4587A, text, 1942; (texashistory.unt.edu/ark:/67531/metapth261838/m1/3/: accessed November 20, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.