Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-07-22
LAW Is ALL RIGHT.
Opinion from Supreme Court
on Insurance Statute.
lis Within Legislative cognizance
and Not Forbidden by Any Section
Or Clause of the Constitution. State
or Federal"

The supreme court, in answer to
request from the Senate, has handed
down its opinion on the much discussed
insurance law, passed several years ago,
and rules that the statute is constitu-
tional, being within the legislative cog
nizanee and not forbidden by any sec
ton or clause of the constitution. state
or federal"
| AS will be recalled there was a lively
| fight between the insurance men and
the opponents of the law as it's exists on
the statute books in which the insurance
men We're victorious. To settle all flu
ture discussions, the Senate asked the
supreme court for its opinion and this
has just been handed down. 1t is as
follows:
To the Senate:
| The undersigned justices of the su-
preme judicial court give the following
as their opinion on the questions sub
mitted to the justices in the foregoing
Senate orders of March % and 25, 1903.
| The two questions submitted are
practically identical since they both are
as to the constitutionality of the same
section of the same statue
| In considering the question we confine
ourselves exclusively to the statute cited
in the Senate order, VIZ: Section l of
| Chapter Is of Public laws of 1895. We
| also confine ourselves to the question of
| constitutionality, ignoring all other
questions The first clause in that sec
| ton is as follows: Sect. 1. No fire in
| surance company shall issue fire insur-
ance policies on property in this State
other than those of the standard from
| herein set forth, except as follows"
Then follow certain exceptions allowed
none of which affect the Questions sub
mitted. In the standard 8fm set forth
| in this section is the clause, cited in the
| Senate order, STIMULATING in effect that
| the amount of the loss or damage under
the policy shall be determined by three
arbitrator instead of by jury-unless
such stipulation be waived. 1
| We assume as too evident for argu-
ment or discussion that the words fire
| insurance company in such a statute
| and in such connection means incorpOr-
ated companies, or corporations, and
Iare not to be extended beyond them.
| Again, it not being otherwise stated in
| the Senate order, we understand we
may assume that in none of the char
| tiers of domestic fire insurance COM
| panieS is there any limitation upon the
power of the Legislature "to amend, al
| ter or repeal" their charters as reserved
| in r. S. GSS3) Oh. 46, Sec. %. The ques-
| ton submitted is, therefore, narrowed
down to this: Is the Legislature in
| hibited by any provision in the constl-
tuition of the United States or of this
State from exercising the power of thus
limiting incorporated insurance COM
panies to the insurance of one standard
form of fire insurance policy, even
though such standard form contain a.
clause that there shall be no right of
faction on the policy until the amount of
the loss or damage be determined by
three arbitrator, or there be waiver
of such clause by both parties. 1t may
be assumed, arguendo only, that by ac-
lcepting such a fire insurance policy the
lassured valves any right to a jury trial
tupon the question of the amount of his
Iloss or damage, but there is no statutory
tcompulsion on fire insurance companies
to issue such policies nor upon proper
ty owners to accept them.
| We do not find in either constitution,
federal or state, any section or clause
in terms inhibiting such exercise. of the
legislative power over fire insurance
companies. While the individual has
existence of the legislature, the corpo-
ration or incorporated company derives
its existence and rights solely from leg
lisIative action. The legislature may re-
fuse to grant any corporate rights or
powers whatever and even existence,
or it may grant one only. Until the
legislature acts, these do not ana cam
not exist. So the legislature may by
general law, or special act, amend,
alter or appeal any corporate charter,
or corporate right or existence once
granted Except of course where II mas
stipulated not to do so), and in so doing
it may cut away the powers OF cor
poration one after another ana from
time to time, and finally destroy the
| last one and the corporation ftseif. IL
| cannot, of course, coni1scate the prop
erty of the corporation once lawfully
acquired. 1t cannot impair the opllga-
| ton of a contract once laWfuliy maze
by a corporation. SO far, the ieg1sla-
ture is restrained by the state and led
| eral constitutions. But it can prompt
| the acquisition of any more property
by the corporation; it can prohibit the
making Of any new contract except one
of particular prescribed form with
prescribed stipulations therein. This
| power. sweeping as it is in its scope, is
necessarily implied and included in the
reserved power to amend, alter or re-
peal the very legislative acts which
give life, powers and rights to the cor
poration. This power is inherent In the
| legislature unlimited by any section or
clause in the federal or state constitu-
ton which we have been able to find.
| Head V. Providence Insurance Co,
Cranch 127: Bank of Augusta y. Earle,
| ~ PET 519. Miller V. New York, IS Wall