Charlotte Liberty Mut. Ins. Co. v. State ex rel. Lanier

• Decision Date: 25 October 1972
• Docket Number: No. 7210SC598,7210SC598
• Citation: 192 S.E.2d 57,16 N.C.App. 381
• Court: North Carolina Court of Appeals
• Parties: CHARLOTTE LIBERTY MUTUAL INSURANCE COMPANY v. STATE of North Carolina ex rel. Edwin S. LANIER, Commissioner of Insurance.

Page 57

192 S.E.2d 57

16 N.C.App. 381

CHARLOTTE LIBERTY MUTUAL INSURANCE COMPANY v. STATE of North Carolina ex rel. Edwin S. LANIER Commissioner of Insurance.

No. 7210SC598.

Court of Appeals of North Carolina.

Oct. 25, 1972.

Atty. Gen. Robert Morgan and Associate Atty. Gen. Benjamin H. Baxter, Jr., for respondent appellee (North Carolina Commissioner of Insurance).

Cansler, Lockhart & Eller, P.A., by Thomas R. Eller, Jr., and Richard D. Stephens, Charlotte, for petitioner appellant.

HEDRICK, Judge.

We express no opinion as to whether the proposed lease between the insurance company and George H. Talbot, President and Treasurer of the company, would be in violation of the provisions of G.S. § 58--79(b)(3).

Article IV of the North Carolina Constitution provides:

Section 1. Judicial power. The judicial power of the State shall, except as provided in Section 3 of this Article, be vested in a Court for the Trial of Impeachments and in a General Court of Justice. The General Assembly shall have on power to eeprive the judicial department of any power or jurisdiction that rightfully pertains to it as a co-ordinate department of the government, nor shall it establish or authorize any courts other than as permitted by this Article.

Sec. 3. Judicial powers of administrative agencies. The General Assembly may best in administrative agencies established pursuant to law such judicial powers as may be reasonably necessary as an incident to the accomplishment of the purposes for which the agencies were created. Appeals from administrative agencies sahll be to the General Court of Justice.

The General Assembly is empowered to confer on the Commissioner of Insurance only those judicial powers reasonably necessary as an incident to the accomplishment of the purposes for which the Department of Insurance was created. State ex rel. Lanier v. Vines, 274 N.C. 486, 164 S.E.2d 161 (1968).

Express powers delegated by statute and implied powers reasonably necessary for its proper functioning are the only powers which an administrative agency possesses. In Great American Insurance Company v. Gold, 254 N.C. 168, 173, 118 S.E.2d 792, 796 (1961) it is stated, 'Administrative boards have only such authority as is properly conferred upon them by the Legislature.' Thus, it is clear that administrative agencies must find within the statutes justification for any authority which they purport to exercise. In 2 Am.Jur.2d Administrative Law § 463 (1962) it is stated:

'What orders and decisions an administrative agency may make is dependent upon its statutory purposes and powers and the validity of the acts conferring such powers. An order cannot be made without power or authority, or for an unauthorized purpose, and if made without authority it may be regarded as a nullity.'

The Commissioner of Insurance of North Carolina is charged with the duty under G.S. § 58--9 with administering the laws of the State with regard to the insurance industry. Specific powers and duties are statutorily conferred upon the Commissioner to aid him in the administration of the insurance laws. G.S. § 58--38 provides:

'If, upon examination, the Commissioner of Insurance is of the opinion that any domestic insurance company is insolvent, or has exceeded its powers, or...