The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-08-07
INSURANCE DECISION.
PAYMENT OF BILLS OF EXAMINERS BY INsuR-
ANcE CoMPaNIEs-METHoD OF THE INsUR-
ANCE DETACHMENT CHANGED.

| PAYMENT OF BILLS OF EXAMINERS BY INsuR-
ANcE CoMPaNIEs-METHoD OF THE INsUR-
ANCE DEPARTMENT. CHANGED
ALBANY, August Q, 1873.
Attorney General Schoonrnaker has just render cd
an important opinion relative 10 the payment Of the
bills OF examiners by insurance companies where ex-
aminations been by direction or the super
intendent OF Insurance. Messrs Harris & Rudd, tho
nrm Of which Senator Harris Is The senior member,
presented bill against the Germania Insurance Com
pany for s3,1l5 for examining titles, &C., to tho
Comptroller for his audit the intention being to have
the company pay Upon this Comptroller inquiries
| OF the Attorney General:-
l. Is proper the Com oler audit and pay
this bill from funds appropriated by the Legislature,
inasmuch provision Is made Tor hearing on the
part OF the company
| 2 Can this oil 90 properly paid by the company
Direct with or without the audit OF the Comptroory
As tho opinion OF tho Attorney General overthrows
| tho method followed by the Insurance Department
heretofore In various other instances ana for which,
In part tho superintendent tried by the Senate
last wirter will be found OF great value to all
noced with the insurance interests, and full
| abstract is given. The Attorney General says:-
In my opinion tho Comptroller can lawfully audit
and pay the oil IRON moneys appropriated for tho
purpose II tho provision for reimbursing tho State
by the company is detective or nugatory that does
not render tho other portions Of tho act imperative
A judicial duty 10 imposed upon tho Comptroller TO
audit and ministerial duty 10 pay the sum allowed,
ana these can DO properly performed though valid
eope may s0' TSo aesepanes an 'os
aauiza.lon under TINS act (4ea OF 1858 for in
panlss ALREADY organized accepts as Well 'I tho
an assent to tho burden OF bearing tho necessary
| penso Of State supervision BY chapter 1913
Of Laws of1SI3 the Legislature made provision
| The mode Of paying exaninors. 1t is further
provided that ali charges against any company by any
attorney appraiser the department shalt be pre-
scented in IN itemized bill, which snail first be APP
| proved by the Superintendent ana then audited
warrant drawn in tho usual manner upon tho State
Treasurer, aud the company examined shall repay the
amount OF the TO tho superintendent, to DO by
him paid tho State treasury replace tho
drawn out Any violation OF tncso provisions Is do
IDENTIFY covers attorneys and appraisers designated by
It's serious question under this statute whether
sufficient hearing or opportunity FOR hearing Is
accorded TO the company " be charged Tor the OK
pcnscs OF an examination. A legislative enactment
iinprsoned or put 10 death without hearing by
assn. Of the State would be moro sarng bat not moro
proceeding Tue act OF 1873 con,ains no
Implied b. tho audit Of tho I'LL by The Comp,
| trollcr The bills are not required In terms TO
charges are then to be audited by the Comptroller
The power to audit being IN its largest judicial
oerned authority to Examine Witnesses and TO re-
ouire verhc.tion or proof OF the bills think tho
Comptroller has the r9nt therefore ana IL Is his cuty
ia auditing bills OF this Kind TO hear the parties ana
to take testimony, II offered, or /! he deems
i sary. Whether TINS meets the requirements OF tho
constitution whether under the right OF SUPERVISION
any may by these means be collected from
pany TO tho extent OF disabling II to transact
business questions TO DO raised by the com panies
and determined BY the courts.
CAN THE PAY.
As to your second inquiry am clearly OF opinion
that an insurance company has no right to pay
charges for examinations directly to the examiners
oither without the audit the Comp rolIor
| aud only pay 10 tho State In tho amer pre-
scribcd BY OF 1873 There Is no cain against
| the company until payment has been made by the
state Tho act OF 1913 Is legislative prohibition
upon companies as part Of tho chdrter Payment in
violation of the statute rem dcrs a company iabIo to
be proceeded against for q forfeiture Of les charter
and TO annu Us corporate existence (Codo Of Pfoce
durc, section 1901 Tue statute Is not
DO observed OF not &C pleasure. II 10 not directory
but mandatory and penal In us character. A Gem