The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-08-07
INSURANCE EXAMINATIONS.
An Opinion by the Attorney-Generai over
throwing the Department.. Method.

ALBANY, Aug. g. - Attorncy-Gcucral
SHOEMAKER has Just rendered an important
opinion relative 10 the payment OF the bills Of
examiners by insurance companies where eX-
amindtions have been made 10y direction Of the
Superintendent Of Insurance Mcssrs. Harris
4 Rudd. the firm Of which Senator Harris Is the
senior member. presented 10 the Comptroller
for audit "A bill against the Germanin Insurance
Company for s3.llj Tor examining titles, ~.
the intention being To have the company nay.
Upon this the Comptroller inquiries Of the At
tOrnry -Gcnoral:
/. l. it proper Tor tho Comptroller 70 audit
aud pay this bill from funds appropriated hy
the Legislature. inasmuch a. no, provision is
made Tor "a hearing on the part Of the company
2. Can this bill be properly paid by the com
pany direct, with on without the audit OF the
The opinion Of the Attorney General OYER
throws the method heretofore followed by the
Insurance Department in various other in-
stances and for which. in part, Superintendent
smyth was tried hy the Senate last winter. The
Attorney General says. in substance:
III my opinion he Comptroller can llwiuly audit and
laA the iil rom MONEYS appropriated FOR The Pario'e
pary ecu,e n migratory HAT doe. NOT fend,r TIC
"lhrr teri9n' W We a't lnolerAuNr len'c"I un'A "
duty t0 as the suiA al AMI these car BE- properly
u ,e n.mnanS MAJ. ".' '' r
o az o "a 5 qG5s e.: . act eS Of 1ssS r
o 90 Its provisions by companies already nr-all g. ac
sea w." .' r, s o the s Laws s o. is7s the
L..,latre made lroyi.lon Tor ne mode q layins
attorney. and APPRAISERS Of ihe department.
Tie term examiner evidently covers attur-
ueys ant appraisers designated hy the supcunt, nicnt
Ills serious ga, stion under uiis statute whether
sufficient hearing nr an opportunity for hearing j. nc
corded a. the company 10 be- char Tor the expenses Of
an examination The act OF 1873 contains no
provision tor hearing by the company unless II Is i'm
Pied hy the audit OF the b by the Comr'r@er
Iur bills MT required IN terms 10 hc verified but they
must be- lcmledo The charges then To be audited
hy the Comptroller . The power to audit being in
IT. largest sense Judicial M rs nature implies hearing
ol the parties concerned and authority 70 examine wat
ncss's ami 10 require Fcrlhcation proof Of the b-
thnN Tie Comptroller has the rht therefore aud II Is
his dufy Auditing bills of TIM kiud tu heis tie parties
and 20 take testimony, # offered, Or he deems tnvcts
A. to your second inquiry am clearly Of opinion mat
insurance company hHs mo- right 20 pay charges tor
examinations directly o. the examiners. ,her Nltn or
without the audit o the Comptrul,r and only pay
a. the state IN the manner prescribed by act OF 1873
THERE'S no claim against the company unti payment
has been made by the state.
Upon receipt Of this opinion the Comptroller
returned tho bill to Harris a Rudd without his
audit, 1t ia understood that the bill will be- cor
rrctod so ms 10 be against the Insurance Depart
ment instead OF the Germania Company, and
will then be returned by the Comptroller.