USLife Life Insurance Co. of Texas v. State Board of Insurance

527 S.W.2d 204, 1975 Tex. App. LEXIS 2901
CourtCourt of Appeals of Texas
DecidedJuly 16, 1975
DocketNo. 12250
StatusPublished
Cited by3 cases

This text of 527 S.W.2d 204 (USLife Life Insurance Co. of Texas v. State Board of Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
USLife Life Insurance Co. of Texas v. State Board of Insurance, 527 S.W.2d 204, 1975 Tex. App. LEXIS 2901 (Tex. Ct. App. 1975).

Opinion

SHANNON, Justice.

The principal inquiry in this cause concerns the placement of the burden of proof in an appeal from an order of the State Board of Insurance to district court pursuant to Tex.Ins.Code Ann. art. 1.04(f).

Appellant, USLife Life Insurance Company of Texas, filed suit in the district court of Travis County to set aside the order of the State Board of Insurance which denied appellant’s application for a change of name. After withdrawing the case from the jury, the court entered judgment which, in effect, affirmed the order of the State Board of Insurance. Appellees are the State Board of Insurance and the U. S. Life Insurance Company. We will affirm the judgment of the district court.

In its trial petition appellant pleaded that it was a legal reserve life insurance company, domiciled in Texas. Before 1973, appellant’s corporate name was “Great National Life Insurance Company.” Appellant is a part of the USLife Corporate system which maintains affiliate operations in many states. Appellant alleged further that “USLife” is a coined word and is displayed in advertising’ of the various companies within the USLife Corporate System. The parent USLife Corporation and its fifteen subsidiaries, which have adopted the US-Life name, have spent much effort and expense in establishing and publicizing that name.

In September of 1972, appellant, desirous of changing its name to reflect its affiliation with the USLife Corporation, filed a name reservation with the State Board of Insurance requesting the reservation of the name “USLIFE Life Insurance Company of Texas.” The said reservation was granted, but it expired by the terms of the applicable statute one hundred-twenty days later in January, 1973. Appellant requested an extension which was granted, but appellant [206]*206again permitted that name reservation to expire one hundred-twenty days later in May, 1973. Appellant again requested the name reservation, but the Commissioner of Insurance denied the request with the explanation that the name reservation must be relinquished for a period of at least thirty days. After the expiration of thirty days, appellant filed anew its request for the name reservation which the Commissioner of Insurance granted on August 14, 1973. To effectuate its change of name, appellant had to amend its articles of incorporation and its certificate of authority. On September 14, 1973, the Commissioner of Insurance approved appellant’s charter amendment, and he approved appellant’s application for an amended certificate of authority on October 4, 1973.

In its responsive pleading, U. S. Life Insurance Company alleged that by February of 1973, it had lodged a protest with the Board authorities concerning appellant’s name reservation for the stated reason that the proposed name was likely to mislead the public. Appellee U. S. Life Insurance pleaded further that it had owned and used its name for twenty-five years and that its name was a valuable asset and right. Both appellees averred that because of appellant’s “numerous filings and lapsing thereof” the protest “. . . was not brought forward into the file upon which action was taken by the personnel of the State Board of Insurance, and the said charter amendment was granted inadvertently by the said Board.”

On October 5, 1973, counsel for appellee company learned of the entry of the order of the Commissioner approving the amendment of appellant’s certificate of authority. On October 12,1973, appellee company filed with the Commissioner of Insurahce its application for reconsideration of his orders. On the same date, appellee company perfected its appeal of the Commissioner’s orders to the State Board. In connection with the appeal of those orders, appellee company requested that the Board defer action on its appeal until the Commissioner of Insurance had been given an opportunity to pass on its application for reconsideration.

After hearing upon appellee’s request for reconsideration, the Commissioner found that he “. -. . was not at the time of his initial approval of the name ‘USLIFE Life Insurance Company of Texas’ administratively advised of the protest filed [by appellee] to the granting and use of the name.” In addition, the Commissioner found that appellant’s requested name “. . . to be so similar to that of another insurance company as to be likely to mislead the public . . Based upon the evidence presented at the hearing, the Commissioner by order dated November 21, 1973, withdrew his approval of appellant’s proposed name and “reversed and voided” his former orders.

Appellant then appealed the Commissioner’s order of November 21 to the State Board of Insurance. After hearing, the State Board entered its order on March 8, 1974, which found that “. . the action of the Commissioner previously taken [the order of November 21, 1973] and which was appealed from, was the correct action in the matter, and it does therefore, uphold and approve the ruling of the Commissioner.” It was the order of the State Board of Insurance, dated March 8, 1974, that appellant appealed to district court.

At the trial of the case, appellant’s position was that appellee had the burden of proof because the law provides for a de novo appeal from the orders of the State Board of Insurance, and in accordance with that position appellant refused to go forward with the evidence.

Judgment was entered for appellee. The judgment recited, among other things, that “. . . the Plaintiff [appellant] having the burden of proof, opened but put on no evidence and immediately rested, and the Court, on its own Motion, having withdrawn the case from the jury, and the Court . . . finds that, as a matter of law, the Plaintiff, USLIFE LIFE INSUR[207]*207ANCE COMPANY OF TEXAS, failed to meet its burden of proof to show that the names are not so similar as to be likely to mislead the public.” The judgment provided further that as a matter of law the name USLife Life Insurance Company of Texas was so similar to U. S. Life Insurance Company so as to be likely to mislead the public.

Appellant assails the judgment by many points of error. The disposition of the appeal, however, is controlled by the points of error one and two which state: (1) the court erred in placing the burden of proof upon appellant, because the law provides for a de novo appeal from orders of the State Board of Insurance, and (2) the court erred because appellees had the burden of proof and failed to meet that burden.

Appellant’s argument is that the appel-lees had the burden of proof in the trial court to show that the proposed name is so similar to that of another company as to be likely to mislead the public, and that because appellees introduced no evidence, the court should have entered judgment in appellant’s favor.

In support of its position, appellant says that upon entry of the orders by the Commissioner approving the amendment of its articles of incorporation and its certificate of authority, appellant acquired a vested right to employ the name, “USLIFE Life Insurance Company of Texas.” The appeal to district court nullified the final order of the State Board of Insurance dated March 8, 1974, and appellant claims that the appeal had the effect of “reinstating” appellant’s right to the name. As authority appellant relies primarily upon Scott v. Texas State Board of Medical Examiners, 384 S.W.2d 686 (Tex.1964), Cortez v. State Board of Morticians,

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527 S.W.2d 204, 1975 Tex. App. LEXIS 2901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uslife-life-insurance-co-of-texas-v-state-board-of-insurance-texapp-1975.