Weekly Indiana State sentinel. [volume] (Indianapolis [Ind.]) 1853-1861, 1855-08-16
For the State Sentinel
The Insurance Law of 1855


At the late session of the Legislature, an
act was passed to protect the people of Indi-
ana against insolvent and bogus Insurance
Companies, which act declares that from the
taking effect of said act, 1T shall not be laavfm
for any agent or agents Of any Insurance Com
pany, incorporated by any other State than
the State of Indiana, directly or indirectly, to
take risks or transact any business of insurance
in this State" without a compliance with the
provisions of that act.
Among the requirements of the law, for
eign Insurance Companies before doing bust
ness in this State, are required to file state
ment of its condition with the Auditor of
State, and il such Insurance Company have
not at least one hundred thousand dollars of
actual cash capital, over and above all liabili-
ties, invested in stocks of at least par value,
1t is made usllalCfuI for such Insurance Com
pany to do business in this State 1t is also
required of such Insurance Companies to in
vest FIVE per cent of their premiums received
in this State, in stocks or bonds of at least
par value, and deposit the same annually with
the Auditor of State, till the sum so deposited
amounts to Twenty-Five thousand dollars, which
is to remain with the Auditor of State as q
guarantee fund for policy holders, so long as
the Company so depositing the same, have
any unexpired policies in the State.
The people Of Indiana have been so much
humbugged with ''Wild Cat" Insurance Com
panies that our Legislature at its last session,
in their wisdom, thought a law of the kind
referred to was necessary for their protection.
Now, that that law is in full force, see
that some agents have the hardihood to I'M
dertake to do business in defiance of the law,
for Companies that have not filed their state
ment with the Auditor of State, and complied
with the provisions of the act referred to.
The object Of this article is to call the at
tention of the property holders to the risk
they assume in taking policies of insurance
companies that refuse, from inability or other
cause, TO comply with the law; the conse-
quences do not only fall on the agent so
violating the law by subiecting him to a
criminal prosecution, but the wors. conse
quences falls on the policy holder, who has
paid his money for the supposed protection
of the insurance company.
The law says at shall not be lawful 4, TO
make such contracts, without first coming
within its provisions.
OF what value to any one is a contract
made in violation of statute expressly pro-
hibiting the same; the answer is that oil such
contracts are absolutely Uoid, and they cannot
be inforced in court of law
1t is proposition laid down in all the law
books, wherever the question is adiudicated,
'that all contracts which provide that any
thing shall be done which is distinctly pro-
hibited by law, or morality, or public policy.
are void" cd Parsons on contracts. .. 252.
In Sd McLeans' reports it is said) "a contract
growing cut of an illegal transaction, or. which
Is connected Herewith cannot be inforced.
1t Is useless to multiply citations to prove
that mo right can be derived from anv agree
ment made in express opposition to the laws
OF place where it is made" 1t has been
decided by the highest judicial tribunals in
the Union, that upon the consideration of an
agreement in violation of Statute. no ac-
ton can be maintained upon it by either par
ty. think what have here said is enough
to satisfy any man of the dullest comprehen-
sion, that policies of insurance issued by the
agents of Companies that have not complied
with the law illegal, and that no rights
can be acquired under such contracts of insu-
rance
Should it be said that the law does not de.
clare all such contracts of insurance roid,
will reply in the language Of an eminent
Judge, that, IAN action cannot be sustained
In the Courts of a State On an agreement en-.
tered into in violation Of the laws of the
United States, or of the laws of particular
State, and the law is the same il the transsc
ticn be prohibited by statute, although it is no
expressly declared that the contract is void
After what has been said on the subject o.
the Illegally of the issuing of such policies
ask what protection our community expect
from insurance made in violation Of an ex.
press law prohibiting it?
If Insurance Companies will violate Law
by making unauthorized policies, they will
violate their promises to pay on the happen.
ing OF a loss, and avail themselves Of the Me.
gatity OF the contract to save themselves from
the consequences Of their loss
IL IS for the property holders Of Indiana q
say if they will take the consequences OF a
violation Of law of the State made for thei,
Pf9sectlon' A, CITIZEN.