The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-01-31
INSURANCE
DECISIONS
Attorney General Roberts
Gives an Opinion
INSURANCE ASSOCIATIONS
Law Is Obscure in Many I'M
portant Points.
INSURANCE ASSOCIATIONS

Guthrie. o. T, Jan. 30.-In answer to
m inquiry from S Il. Harris. attorney
General J. c. Roberts yesterday render
ed an interesting and important opinion
in regard to some of hte phases Of the
laws which relate to the organization
and maintenance of mutual insurance as
sociations Several questions of vital i'm
portance to such insurance associations
are propounded by Mr.. harris.
Regarding the law Attorney General
Roberts says:
1T is law in many particulars OBJ
scure. conflicting and misleading, and
beg TO preface what ] may have to say
in this letter with the general state
ment that the opinions expressed do not
go with supreme confidence in their cor
rectness. l have, however, both since
and before the receipt Of your letter,
given the law very earnest consideration
and the conclusions arrived at by me
are the result of mature deliberation."
The first question was: Has the sec
rotary the power to compel this asso-
citation to suspend. and if so under what
statute?" In answer to which Attorney
General Roberts holds that the secretary
has not the power himself TO compel the
suspension of a mutual insurance associa-
ton. but that he does have the right to
call upon the attorney general TO insti-
tute proper proceedings to dissolve the
corporation.
The second question rs an associa-
tion of this kind properly organized with
one thousand members, compelled TO sus-
-l,sr,
should fall below that NUMBER" is an
swered in the affirmative as is also the
third, Can an association of this kind
insure its members crops against hail
and also insure their buildings against
fire, etc.
In answer to the question, Does sec
ton one require one thousand or more
members in the fire and lightning insur-
ance contract and an additional one
thousand in the hail contract before the
association is authorized to do business
In both lines or is one thousand or more
members sufficient to carry the insurance
contract in all theb ranches specified in
section one?" he held that it is only
necessary to have one thousand persons
of the company whose insurance policies
the contracts may be Of any or all of
such company is by law, but no one
should be permitted to be considered
member whose policy of insurance was
not in force.
This last brings up the most vital
question and in dealing with it Judge
Roberts says: when property is des-
troyed or becomes extinct or the sub
feet matter of the insurance no longer
90 continue but to be extinct 1t is al
together able then that policies are writ
ten, simply to cover the insurance of one
years crop. that when the crop is har-
vester the subject matter of the insur-
awe being extinct the policy would be
extinct, and the holder of the policy
would be no longer considered a mem
Der of the association. This is the con-
clusion at which l have arrived after
a great deal Of consideration, and while
there may be arguments to the contrary
Of the position / have taken, I believe
the construction of section TO- Of the law
Of 1899 in connection with the law as
whole, and the spirit Of its enactment
will permit no other determination
am not attempting to say this that poll
cies of crops against loss of hail could
not be made 70 continue over the period
OF gathering Of one crop. I do believe
that the law would permit the passage
of a bylaw enabling the company to
write insurance on crops against loss by
hail to cover a period of two or more
years.
Generally speaking this Office and the
Insurance department as in harmony in
their views upon the construction to be
given in this law and this letter has been
submitted TO Mr. Cornell. the assistant
secretary and in its general terms con
forms to his views"