The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1908-09-10
INSURANCE cos.
ARE EXEMPT
ATTORNEY GENERAL OPINES
THAT THEY MAY TRANS
FER CASES TO UNITED
STATES COURTS
NOT HELD BY
STATUTE

In an opinion just given at the
request OF Mr.. Billheimer, State Au-
ditor, James bingham, Attorney-Gen-
eral, holds that Section 346O Burns
r. S. 1901, relating to foreign COM
panies admitted TO transact business
in Indiana, does not apply TO foreign
insurance companies. The section re-
ferred to says that any foreign cor
poration transacting business in the
State which shall transfer or caus.
to be transferred from any court OF
this State to any court OF the United
States, save by. regular course of APP
peal, after trial in the State courts,
any action begun by or against such
corporation in any court OF this State
by or against any citizen or resident
thereof shall thereby forfeit its right
and authority to transact business in
die State.
Although there has always been
some doubt as TO whether or not this
section applied to foreign insurance
companies there had never been until
recently any occasion for seeking a
legal opinion. Recently, however
the thrsat was made, it is understood
that case in wiich a foreign insur,
ance company was involved would be
transferred 20 a United States court
or at least that such an attempt would
be made. 1t was on this information
that an opinion from Sle Attorney
General was sought.
In the past, according TO Mr.. Bill
insurance companies to transfer cases
to the United States courts in this
way, and although the law Is in favor
of foreign companies, should they at,
tempt stidh course, the Auditor be-
lieves there will be no trouble along
this line Heretofore foreign insur-
ance companies and all other kinds
have shown a desire to- stand well
with the State department, and it is
elieved this will still prove an incen-
i've in spite OF the Interpretation OF
the law.
The chief objection to the removal
Of sudni cases 10 the United States
courts is rhe expense and inconven-
ence entajled. For example if a cit
zen should sue an insurance company
on a small claim and the insurance
company should transfer the case to
me United States court it is likely
that the expense of taking witnesses
20 the United States Court probably
lar removed from the scene OF troublc
would make it not WORTH while to
pursue the claim.
In declaring that the section oil the
statute in question doe not apply
foreign insurance companies trans
acting business in Indiana the Attor-
ney-General points out that the Gen
eral Assembly has at various times
passed number OF laws relating es-
pecially to foreign insurance com
panes. nj the case of Rehm VS.
German Insurance Company, 125 Ind,
1875, 1877, the following declaration oil
the Supreme Court is in point:
For many years foreign insurance
companies doing business in thi
State nave been under regulations ap-
plicable to such companies, but 70 no
other corporations By such spec
ial provisions insurance companies
are. given to understand THAT. upon
complying with the terms and condi-
tons imposed, they may enter the
State and carry on the business of in
surance; and having conformed to
such requirements, the conditions oil
other statutes can not be imposed"