The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-11-01

serted in the bond or contract. Before
accepting a surety bond or contract,
the board undoubtedly has the right
TO require that the surety. stipulate
therein that it may be entered with
the employer as a joint and several
Judgment debtor in any decree or
Judgment rendered in the district
court Section 10 of the act provides
that the surety shall be bound by de-
clsions, judgments or awards render
ed against the employer. Such a pro-
vision, however, hardly is broad
enough to authorize district court i'm
rendering record judgment against
the surety, unless an express stpula-
ton to that effect has heretofore
been made Once a Judgment is rem
dered against the surety, it undoubt-
eddy would be paid if the company is
az all responsible.
For Benefit Employees.
Should a situation ever arise where
1t became necessary for an action to.
be instituted in the district court on
the surety company's bond, such an
faction would be instituted by the in
jured employe. Although the bond or
contract will run to the state, it will
be for the benefit of the employees; and
it is a well established rule of law that
the beneficiary under a contract may
bring suit thereon in his own name
although not party thereto. When
an employe is injured and hospital at
tendance, medical aid and compensa-
ton are refused, the employe in the
first instance brings his claim before
the industrial accident board. AS stat
ed above the award of the board may
be put on record as a judgment in the
district court. If in any given case
the surety company pays the award, it
of course has recourse against the en-
ployer This, however is a matter in
which neither the state nor the en-
ploye is interested.
Your last question is as follows:
Under the Idaho insurance law, can
any insurance company authorized to
do a surety or guaranty business also
under the authorization to write such
surety or guaranty business, do
Workmen's compensation liability bus
mess?
Must Have License.
We gather from this question that
you desire our opinion as to whether
or not the ordinary surety company
sions of the insurance code and is au-
thorized to do a surety and guaranty
business in the state of Idaho, may
write liability contracts without
special license therefor AS general
proposition a surety company is not
an insurance company, and any SUI
ETY. company which desires to write
accident insurance, would be required
to comply with the provisions of our
law governing accident and casualty
insurance companies. The provisions
of the insurance law relative to cap
ital, surplus, maximum risks, forms of
policy, etc, are not the same for sur
ETY. companies as accident companies.
and consequently a surety company
which wished to write liability insur-
ance would be required to take out a
separate license the same as if the two
classes of business were being written
by two different companies.
Status of Companies.
We apprehend, however, that the
real purpose of your inquiry is to as
certain whether or not a surety com
pany which executes a surety bond or
a guaranty contract under the provi-
sion of subdivision CD of section rs
of the compensation act, can at the
same time issue to the employer a
contract indemnifying him against any
awards which he may be required to
pay under the provisions of the act
This is a somewhat different question
more in the nature of a contract OF
Indemnity, than policy of insur-
ance There is no provisions in the
insurance code or elsewhere in the
Idaho statutes placing any express re-
strictions upon the issuance of en-
ployers' liability insurance, The in
surance code (Sec. 46, Sub. 81 express
ly excerpts from the provisions of the
act blanket policies of insurance is
sued to cover an entire body or class
of employees for a premium intended
to cover the srisks of all the persons
insured under such policy. This ex-
ception might include indemnity con-
tracts Of the kind under discussion
But whether or not employers liability
contracts are expressly excepted from
the provisions of the insurance code
the fact that the law places no express
restrictions upon the writing OF such
contracts would permit company
regularly authorized to write insur-
ance within the state to write con-
tracts of this character. There is a
possibility that our laws would be
construed as permitting a company to
write such contracts within the state
simply by complying with the laws
relative to foreign corporations. How
ever these contracts generally are re-