Case ID: ohio-st_38/html/0007-02.html
Source: Caselaw Access Project
Author: {"author": "White, J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

The State v. Moore.
    1. A. company of another state organized for “ insuring lives on the plan of assessment upon surviving members,” without limitation, does not come within the class of companies provided for in- section 3630 of the Revised Statutes. That section does not embrace companies insuring the lives of members for the benefit of others than their families and heirs.
    2. The supplementary act of April 12, 1880 (77 O. L. 178), does not enlarge the class of companies provided for in said section, but' merely, prescribes the regulations, under which such companies, whether domestic or foreign, may do business in the state, and subjects them to. additional supervision.
    
      Mandamus.
    This is ah application by the state on the relation of the Fidelity Mutual Aid Association, a corporation organized under the laws of the state of Pennsylvania, for a mandamus against Charles H. Moore, the superintendent of insurance of this state, to require him to issue a certificate to the relator, to the effect that it has complied with the laws of this state “ regulating corporations, companies or associations organized for the mutual protection of its members within this state.”
    The relation shows that the relator was organized under section 37 of the act of the legislature of Pennsylvania, approved May 1, 1876, which is averred to be as follows: “ Companies insuring lives on the plan of assessments upon surviving members, may be organized in the same manner as provided in this act for the organization of mutual fire insurance companies; and the provisions of the act to which this is supplementary shall not apply to said companies, and companies heretofore organized, if their business is transacted in accordance with the provisions of their respective chai’ters, whether with or without capital stock, guarantee, capital, or accumulated reserve, in lieu of capital stock: provided, however, that each of said companies shall be required to exhibit an annual statement to the insurance department, which shall be published in the annual report of the insurance commissioner, of the amount, if any, of its capital stock ; and also of .all of its assets, assessments and liabilities, and to answer such interrogatories as the insurance commissioner may require, in ■order to ascertain its character and condition.
    “ For this purpose the said commissioner may at any time institute an examination of the affairs of any such company, as is provided in the case of mutual insurance companies, by the .act to which this is supplemental; provided, - also, that no part ■of such assessment upon surviving members shall be applied to any other purpose than the payment of death losses, unless the amount intended for other purposes is specially stated in the notice of such assessment, and the object or objects for which it is intended; provided further, that all policies or certificates issued by said companies shall state that the company issuing the same is not required by law to maintain the reserve which life insurance companies are required by the act to which it is a supplement.”
    The scheme and mode of doing business by the company is determined by its by-laws, a copy of which is annexed to the relation, and which are averred to be still in force and to govern the condition of its membership. Article 1 is as follows: “ The object of this association shall be to secure to those having an interest in the lives of deceased members a specified sum of money, by assessment on surviving members.”
    
      “ Art. 17. An assignment of a membership and policy of insurance shall be void unless assented to in writing by the president or treasurer of the association.”
    
      Batemam, $ Ho/rper and E. B. Jeioett, for plaintiff.
    
      George K. Hash, attorney-general, for defendant.
   White, J.

The relator is a life insurance company, organized under the laws of the state of Pennsylvania; and the question raised by the attorney-general on behalf of the defendant, is, whether it is entitled to do business in this state without complying with section 3604 of the Revised Statutes.

The business of life insurance in this state is regulated by statute. These regulations are found in chapter 10 of the Revised Statutes, commencing with section 3587, and in certain amendatory acts.

The relator, from the nature of its organization, claims to be exempt from the operation of section 3604, and to be entitled to carry on business in the state under section 3630, and section 3630 e, of the supplementary act of April 12,1880. 77 Ohio L. 181.

The character of the company or association authorized to do business under section 3630 is thus described in the section : “ A company or association may be organized for the purpose of mutual protection and relief of its members, and for the payment of stipulated sums of money to the families or heirs of the deceased members of such company or association, and may receive money, either by voluntary donation or contribution, or collect the same by assessment on its members, . . . . ; and such association shall not be subject to the preceding sections of this chapter.”

It is companies and associations of this character alone that are exempt from the operation of the preceding sections of the act; and this exemption is allowed on account of the limited nature of the life insurance they are authorized to assume, being confined to insurance for the benefit of the families and heirs of members.

The exemption is not enlarged by the supplementary act of April 12,1880, already referred to. Section 3630 a of that act only embraces companies or associations organized under the laws of this state “ for the purpose of doing business under the provisions of section 3630, or for the purpose of doing such business as is contemplated by said section.”

The object of the act is to prescribe the regulations under which such companies or associations may do business, and to subject them to additional supervision.

Section 3630 e of the supplementary act does not enlarge the class of companies or associations, but merely prescribes what such companies or associations, organized under the laws of any other state, shall be required to do before they are permitted to do business in this state. They are required to comply with the laws of this state regulating like companies and-associations organized in this state, and obtain from the superintendent of insurance a certificate of such compliance.

The statute under which the relator is organized, and the by-laws under which its business is carried on, authorize it to engage in the business of “ insuring lives on the plan of assessments upon surviving members,” without other restrictions than that policy-holders shall have an interest in the lives of members.

Companies of this state cannot engage in the business of life insurance thus unrestricted, under section 3630 of the Re.vised Statutes; nor can companies organized under section ■3587 to insure lives “on the mutual or stock plan,” without furnishing security for the assured, as provided in section 3593. The sectionTast named relates to domestic companies organized under section 3587; but the equivalent provision applicable to similar companies of other states is found in section 3604.

The law of comity which the relator invokes in support of his application, is fully satisfied when foreign companies áre permitted to do business in this state upon the terms prescribed for domestic companies.

The writ must therefore ie refused.

Okey, C. J., did not sit in this case.