Document: 341 U.S. 105 71 S.Ct. 601 95 L.Ed. 788 CALIFORNIA STATE AUTO. ASS'N INTER-INSURANCE BUREAUv.MALONEY, Insurance Com'r of State Callfornia. No. 310. Argued March 8, 1951. Decided April 23, Mr. Moses Lasky, San Francisco, Cal., for appellant. Harold B. Haas, appellee. Justice DOUGLAS delivered the opinion Court. 1 Appellant is an unincorporated association which California District Court Appeal analogizes to a mutual insurance corporation. The details its organization and operation are not important here. It supervised by Commissioner California, like other companies doing liability business. was formed write automobile select group members at lower cost than then prevailing rate. A law requiring proof financial responsibility from certain people before issuing them license drive car, provides that person who does pay judgment $100 or more arising out accident has his driver's suspended, suspension can be lifted only paying establishing ability claims future accidents. That may established insured, posting surety bond, deposit $11,000 in cash. Cal. Vehicle Code, 1943, §§ 410, 414. Another requires operators trucks hire supply such evidence they get permits operate trucks. Cal.Stat.1935, c. 312, Gen.Laws, Act 5134. 2 One result these laws make it impossible large number drivers—classified as poor risks possessing enough resources bond cash deposit—to receive drivers' licenses motor vehicles. Some were risks, others not. Many hardship cases developed among dependent on use highways living. There proposal go into business insure risks. countered adopting voluntary assigned risk plan under all undertook some, though all, groups unable obtain insurance. This plan, approved California's Department, provided allocation applicants subscribing insurers proportion amount written each preceding year. 3 did reach applicants. Moreover, appellant withdrew it, causing reluctant continue it. Thereupon legislature enacted Compulsory Assigned Risk Law. Cal.Stat.1947, 39, p. 525, amended, 1205. shall approve 'a reasonable equitable apportionment' 'who good faith1 entitled but procure through ordinary methods.' Code 1947, § 11620. mandatory subscribe plan. Id. 11625, 11626. 4 objectionable appellant, refused Commissioner, acting pursuant authority granted him, suspended appellant's permit transact California. contested courts. sustained act against claim violated Due Process Clause Fourteenth Amendment. 96 Cal.App.2d 876, 216 P.2d 882. petition hearing denied Supreme case here appeal. 28 U.S.C. 1257(2), U.S.C.A. 1257(2). 5 assails constitutionality Amendment following grounds: commands enter contracts incur liabilities their will; forces have abnormal loss expected; alter type cooperative with membership venture insuring general public. 6 support contentions presses Michigan Public Utilities Commission v. Duke, 266 570, 45 191, 69 445 Frost Trucking Co. Railroad 271 583, 46 605, 70 1101 us. Those held private carriers vehicle could consistently converted public legislative fiat nor allowed condition become common carriers. We put those one side. To sure, required different voluntarily serve. But there restrictions commitments incident broadened undertaking. advised argument premiums chargeable commensurate greater new Confiscation therefore factor case. statute apportionment insurers, serve comers. Furthermore, uninsurable eliminated plan; policies issued provide limited coverage $5,000—$10,000. 7 broadest state interest member assume pro rata share burden modern conditions made unlike Noble Bank Haskell, 219 104, 31 186, 55 112, assessing bank creation depositors' guaranty fund. What said about police power—that 'extends great needs' utilized aid what deems necessary welfare, page 111, 188—is peculiarly apt when involved—a government long had 'special relation.'2 See Osborn Ozlin, 310 53, 65, 66, 60 758, 762, 763, 84 1074. Here, banking field, power broad take over whole business, leaving no part enterprise. Mountain Timber Washington, 243 219, 37 260, 61 685; supra, 763. hold hand local needs serviced case; theory Virginia's Virginia residents writing casualty Virginia. principle Ozlin now recognition situation acute any states deal. Highway accidents train property personal injuries notoriously problems every community. Clearing irresponsible drivers, devising ways means making sure compensation awarded innocent victims, yet managing scheme leaves open livelihood deserving taxed ingenuity makers administrators. 8 Whether program wise unwise our concern. Olsen Nebraska ex rel. Western Reference & Bond Ass'n, 313 236, 862, 85 1305; Lincoln Federal Labor Union Northwestern Iron Metal Co., 335 525. problem views will vary. cannot say went beyond permissible limits accept insurable circumstances barred hence Appellant's course less prosperous regulation. diminution value, however, never mounted dignity taking constitutional sense. 110, 187; Block Hirsh, 256 135, 155, 41 458, 459, 65 865. 9 Affirmed. 10 BLACK would dismiss appeal ground questions frivolous. Under Administrative Tit. 10, 2400—2498, several categories excluded. excluded cover wide range. illustrative: convicted once, within three years application, manslaughter negligent homicide resulting vehicle; twice, same three-year period, driving while intoxicated influence liquor; addicted drugs. 2431. regulation been upheld variety Amendment: Hooper People 155 648, 15 207, 39 297, requirement bond; Orient Daggs, 172 557, 19 281, 43 552, fixing recovery insured value; Nutting Commonwealth Massachusetts, 183 553, 22 238, 324, security; Carroll Greenwich New York, 199 401, 26 50 246, prohibition combinations agreements between companies; National Life Ins. Riggs, 203 243, 27 126, 51 168, limitation defenses; Whitfield Aetna 205 489, 578, 895, same; German Alliance Hale, 307, 229, statutory penalty rate-fixing combinations; Lewis, 233 389, 34 612, 58 1011, rate regulations; 685, workmen's act; La Tourette McMaster, 248 465, 160, 63 362, licensing brokers; Fire Wanberg, 260 71, 32, 67 136, limiting time rejection hail policies; Merchants Mutual Automobile Liability Smart, 267 320, 538, indemnity Hyde, 275 440, 48 174, 72 357, O'Gorman Young Hartford 282 251, 130, 75 agents' commissions; Hardware Dealers Glidden, 284 151, 52 69, 76 214, prescribing compulsory arbitration provisions; Casualty McCray, 291 566, 54 482, 78 987, additional failure demand; 1074, participation resident agents; Hoopeston Canning Cullen, 318 313, 602, 87 777, reciprocal associations; Farm Duel, 324 154, 573, 89 812, reserve requirements; Robertson 328 66 1160, 90 1366, Daniel Family Security 336 220, 550, 93 632, separation life undertaking businesses.

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