Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-01-24

| right to do an insurance business with
out reference to the laws governing In
| surance corpora lions, and the business,
the attorney general is equally positive.
| He is certain chat they must fully
comply with the law regulating 1nsur-
| ance other than life before they are
entitled to issue policies OF insurance
upon any of the risks permitted by sec
ton 1903 of the code"
The attorney general says:
Such unincorporated associations,
partnerships or individuals, must have
the amount of capital required OF In
corporated companies, and are subject
to examination by the auditor as are
corporations organized for the purpose
of carrying on an insurance business.
and have no right to issue policies for
any purpose until they have received
the certificate of the auditor author
izing them to do business within the
state. Such associations, partnerships
or individuals, are limited to the class
of risks which incorporated companies
are permitted to insure against and
must make their annual statements to
the auditor as Is required of such in
corporated companies.
of the code, any person, association, or
partnership which issues policies Of In
surance without having fully complied
with the provisions of chapter 4. OF
title TX Of the code, is guilty of a mis-
demeanor and liable to a fine OF $1,000
and to imprisonment in the county Jail
for one year.
every such association, partner
ship or Individual stands upon the
same footing as an incorporated in
surance company SO far as the COM
pliance with all of the provisions OF
chapter of title TX. relating to the
manner of carrying on insurance bust
ness in the state, is concerned.
Right Of Contract.
"It may be suggested, as has been
urged before the insurance depart
ment of the state, that 1t is the right
of every individual within the state
to enter into contract of insurance
with another, and that any statute
which attempts to prohibit such con-
tract is uncons titutional, because II
abridges the liberty of contract; and
that it follows, therefore, that an I'M
incorporated association. partnership
or individual has the right to enter into
contracts OF insurance and to insure
against risks, casualties and contingent
events without complying with the
provisions of the statute referred to-
with this contention cannot agree
as it is clearly the right of the legis-
lature to regulate the business of In
surance and to provide the manner in
which it shall be conducted within the
state The recent case OF Brady VS..
Mattern, which Is reported in 100
Northwestern Reporter, at page 1853, ~
directly in point upon this question.
1.-The legislature of Iowa has under.
taken to regulate the business Of iIs-
surance within this state, and, by the
provisions Of section 1851, has declared
that such regulation applies equally 70
partnership, individuals and unincor.
porated associations. This provision
of the legislature does not prohibit the
business of insurance; 1t regulates Il.
1t in substance says to all persons.
partnerships, associations and corpor-
ations: If you wish to carry on the
business Of insurance you must provide
the capital required by statute, submit
your affairs to the examination OF the
auditor of state, and obtain his per-
mission to transact an insurance bus
mess under the laws Of the state. That
such power exists in the legislature
cannot at this time be questioned.