The Miller press. [volume] (Miller, S.D.) 190?-current, 1910-11-17
COMMISSIONER OF INSURANCE
WARNS PUBLIC AGAINST
THE UNLICENSED
CANNOT COLLECT LEGALLY
Insurance by Unlicensed Companies
Uncoilectible and the Insured
Liable to Prosecution
Under Law
BY o. s. BASFORD.
Insurance Commissioner


II has been difficult for the insur-
ance department to eradicate entirely
the writing of Illegal Insurance.
A bond taken u from an unli ensed
company is uncollectab!e In our state
court.
Policies are solicited by NAL by un-
licensed companies and we have secur-
ed from Attorney General Clark a
communication which we issue as a
warning. Two two points to lie en-
phasized are:
First. Such insurance is upcolleCt-
able in our state courts.
Second. The pc son sigring an APP
plication to an unlicensed compa y is
liable to p osecution and unishme nt
as well as the company VIII Gu writes
the insurance.
GGneral Clark says:
Answering this inquiry I would par
ticularly call attention to Sc. IA OF
Capter 210 of the Session Laws Of
1909, This section reads as follows:
1T shall be unlawful for any per,
son, company or corpo at OF In this
state, either to procure, receive or for
ward applications for insuran e in or
to issue or deliver policies in any COM
pany or companies net ha Ing teen
legally authorized to do bUs ness in
this state, and any person. company or
corporation violating the pr Wis ons
OF this act shall be deemed guilty
OF a misdemeanor and upon convi ton
thereof shall, for each and every Of
Tense, be punished by a fine not 70
exceed 500, 90 or imp isonment for not
to exceed two months in the county
Jail, or by both such fine and imp is-
onment."
Secs. Is, Is and 16 OF CHARTER 2t0
of the Session Laws OF 1909 a p o.
vide requirements of foreign insurance
companies before they may transact
business in this state.
And Sec. 667 of the Civ. Code of 1903
provides in part as follows:
"No company tr~ansacting the bust
ness Of fire insurance in this ate, not
inco porated under the laws of I Is
state, shall write or cause to be writ
ten any policy OF insuran G on pro D
erty located in this state except
through a duly autho ri7e1 agent of
such corporation who shall res de
within the state. ard who 81 | lie IL
censed by the commissioner o. insLr-
anc according to law"
From these quotations OF the law
you will readily see that any peIs n
connected with the procure y ent OF a
policy of insurance issued by an IN
authorized company is liable to p n
ishment, and pa ticularly so under
the provisions of Sec. IA o Chapter
210 of the Session Laws of 1909.
There Is no question but that these
provisions Of statute are constltutio nal
and will be sustained by tie cou is.
Where a policy OF insuran e Is de-
posted in the mail, outs &c OF the
state, and addressed to and de ivered
to a person within the sta e. the
place Of delivery fixes the local ty OF
the act; and, in the p esent inqui y,
where an unauthorized insurance COM
pany places a policy of ir%suranye in
the mails addressed to and with the
intent that it be delivered to a pc son
with this state, snch una thoriZ" d
company has committed a crime with
In this state and is subject to prose u
ton within this state for the viola
ton of our laws.
Therefore, It is my opinion that ev-
cry time a policy OF insu a9ce Is re-
ceived by mail in this state, from an
unauthorized insurance company in
this state, that the Offices of the com
pany depositing the policy in the mails
and the nprGnn ranafyino tho rnftaU
from the mails have each vioIatei the
provisions OF Sec. IA of CHARTER 20
of the laws Of 1909. and that thev are
each liable to fine or imp isonment,
or both, for each separate offense.
/ call your attention particularly to
the fact that the resident Of tbs state
who forwards his a%pplicaion of ms ir-
Inc through the mails. from such an
unauthorized company Is himself
liable to arrest and imp isonme I or
fine, or both. equally with the AGENTS.
Of the unauthorized company who re-
ceived the application and who for
warded the policy.
would furthermore call yorr at
tention to the fact that no recovery
can be had. in this state, under a
policy Of insurance that was issued by
an unauthorized company. A rer-
son taking out insurance IN such IN
authorized company, is not or ly liable
to punishment, bue he earn recover
a cent, on the policy, If loss occurs.
through the courts of this state.
Trusting this answers your inquiry.
I am Yours ve~y truly.
s. w. CLARK.
Attorney General.