Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1910-11-17
BASFORD WARNS
COMMISSIONER or INSURANCE.
WARNS PUBLIC AGAINST
THE UNLICENSED
CANNOT COLLECT LEGALLY
insurance by Unlicensed Companies
Uncollectible and the Insured
Liable to Prosecution
Under Law
BY o. S. BAsFoRD.
Commissioner

BY o. s. BASFORD.
Insurance COMMISSIONER -
It has been difficult for the insur-
ance department to eradicate sntirsfy
the writing of illegal insurance.
bond taken out from an unlicensed
company is uncollectable in our state
court
Policies are solicited by mail by IN
licensed companies and we have secur-
ed from Attorney General Clark
communication which we issue as q
warning. Two two points to he en-
phasized are:
First. Such insurance is unsoilect-
able in our state courts.
Second The person signing An ap-
pllcation to an unlicensed company II
liable to Prosecution and punishment
as we'll as the company which writes
the insurance
General Clark says:
| Answering this inquiry would par
ticularly call attention to Sec. Ia OF
Capter 210 of the Session Laws Of
1909. This section reads as follows.
ut shall be unlawful for any pe..
son. company or corporation In this
state, either to procure, receive or for
ward applications for insurance N, or
to issue Or deliver policies in any com
pany or companies not having been
legally authorized to do bus ness in
this state. and any person, company or
corporation violating the pr3vis' ons
of this act shall be deemed guilty
OF misdemeanor and upon convi ton
thereof shall, for each and every e.
tense, be punished by fine not TO
exceed $4,000 or Imprisonment for not
to exceed two months in the county
Jail. or by both such fine and imp. is-
onment"
Secs. 10, is and 16 OF CHARTER 80
of the Session Laws of 1909 as o.
vide requirements of foreign insurance
companies before they may transact
business in this state.
And Sec GET of the Civ. Code Of 1893
provides in part as follows:
| No company transacting the brsi-
ness Of fire insurance In this state not
incorporated under the laws OF thiss
state, shall write or cause to be writ
ten any policy of insuran e ON prop
erty located in this state except
through duly authorized agent OF
such corporation who shall res do
within the state, and who shall be N
/ censed by the commissioner of insur-
ance according to law"
From these quotations Of the law
you will readily see that any person
connected with the procurement of
policy OF insurance issued by an IN
authorized company is liable tn nnn-=
ishment, and particularly so under
the provisions of Sec ID o. Chapter
2le Of the Session Laws OF 1909.
There is no question but that these
provisions of statute are constitutional
and will be sustained by the cou Is
Where policy of insurance is de-
posted in the mail, outs de OF the
state, and addressed to and delivered
to person within the sta e, the
place OF delivery fixes the local ty OF
the act; and, in the present inquiry.
where an unauthorized insurance CON-
pany places a policy of Insurance In
the mails addressed to and with the
Intent that 1t be delivered to a pc son
with this state, such unauthorized
company has committed crime with
in this state and is subject to prose ~
ton within this state FOR the viola
ton of our laws.
Therefore. it is my opinion that ev-
cry time policy Of insurance is re-
ceived by mail in this state, from sn
unauthorized insurance company in
this state, that the officers Of the COM
pany depositing the policy In the mails
and the person receiving the policy
from the mails have each violate! the
provisions Of Sec. IA of Charter 21e
of the laws of 1909, and that they are
each liable to fine or Imprisonment,
or both, for each separate offense.
call your attention particularly 70
the fact that the resident OF this state
ance through the mails, from such an
liable to arrest and imprisonme or
fine. or both. equally with the agents
of the unauthorized company who re-
ceived the application and who for
warded the policy.
I would Furthermore call your At
tention to the fact that no recovery
can be had, in this state, under
policy of insurance that was issued by
m unauthorized company. Ary PER
scc taking c... !!::..s:.::: zee i: such 60
authorized company, Is not only liable
TO punishment, Due he cannot recover
a cent. on the policy, II loss occars.
through the courts OF this state.
Trusting this answers your inq1isy.
l an Yours very truly,
S. w. CLARK,
Attorney General.