Idaho Mutual Co-Operative Ins. Co. v. Myer

• Decision Date: 01 July 1904
• Citation: 77 P. 628,10 Idaho 294
• Parties: IDAHO MUTUAL CO-OPERATIVE INSURANCE COMPANY v. MYER, INSURANCE COMMISSIONER
• Court: Idaho Supreme Court

77 P. 628

10 Idaho 294

IDAHO MUTUAL CO-OPERATIVE INSURANCE COMPANY v. MYER, INSURANCE COMMISSIONER

Supreme Court of Idaho

July 1, 1904

STATUTORY CONSTRUCTION-LOCAL LAW.

1. Statutes will be construed with a view to ascertain the intent of the law-making power and to give force and meaning to the language used.

2. A statute that deals exclusively with one subject and repeals all acts and parts of acts in conflict with it will be construed to have been intended to cover all subjects and matters of the new act.

3. The legislature may enact a law relative to one class of insurance so long as it is general in its terms as to that particular class of business.

(Syllabus by the court.)

ORIGINAL action in this court. Application for a writ of mandate. Writ granted.

Writ of mandate issued. No costs awarded.

Davidson & Hutchinson, Good & Roberts and H. J. Jones, for Plaintiff.

The fact that an act classifies persons who may form a corporation, or the purposes for which corporations may be formed, or the corporations which shall enjoy powers or privileges granted, does not render it a special act, if the classification is reasonable, and if the act applies to all persons or corporations falling within the particular classes. (1 Clark & Marshall on Private Corporations, pp 105, 106; Attorney General v. McArthur, 38 Mich 204; In re New York Elevated R. Co., 70 N.Y. 327; Hazelett v. Butler University, 84 Ind. 230; City of Indianapolis v. Navin, 151 Ind. 139, 47 N.E. 525, 51 N.E. 80, 41 L. R. A. 337; Atlantic City Water Works Co v. Consumers' Water Co., 44 N.J. Eq. 427, 15 A. 581; 23 Am. & Eng. Ency. of Law, 1st ed., 149; Edmonds v. Herbrandson, 2 N. Dak. 270, 50 N.W. 970. 14 L. R. A. 725; Bray v. Hudson Co., 50 N.J.L. 82. 11 A. 135; Davis v. Clark, 106 Pa. 377; Van Riper v. Parsons, 40 N.J.L. 1.) When a corporation is organized under a general corporation law authorizing the formation of such corporation, its charter consists of the law under which it is organized, and the articles or certificate of association or incorporation adopted or issued in pursuance of the law, in so far as they are in compliance with and authorized by the law. (1 Clark & Marshall on Private Corporations, p. 375; Granger's Life etc. Ins. Co. v. Kamper, 73 Ala. 325; People v. Chicago Gas Trust Co., 130 Ill. 268, 17 Am. St. Rep. 319, 22 N.E. 798, 8 L. R. A. 497; Chicago Municipal G. L. & F. v. Town of Lake, 130 Ill. 42, 22 N.E. 616; Van Etton v. Eaton, 19 Mich. 187; Taggart v. Perkins, 73 Mich. 303, 41 N.W. 426; State v. Central Iowa R. Co., 71 Iowa 410, 60 Am. Rep. 806, 32 N.W. 409; Abbott v. Omaha S. & R. Co., 4 Neb. 416; Lincoln Shoe Mfg. Co. v. Sheldon, 44 Neb. 279, 62 N.W. 480; Society etc. v. Commonwealth, 52 Pa. 125, 91 Am. Dec. 139; Knights of Pythias v. Weller, 93 Va. 605, 25 S.E. 891; Gould v. Fuller, 79 Minn. 414, 82 N.W. 673; Groin v. Potter's Co-op. Co., 29 Wkly. Law Bul. (Ohio) 52.) The question for the court is, What did the legislature really intend to direct? And this intention must be sought in the whole act taken together, and other acts in pari materia. (Sutherland on Statutory Construction, secs. 260, 286, 287.)

John A. Bagley, Attorney General, for Defendant, cites no authorities on question decided.

STOCKSLAGER, J. Sullivan, C. J., and Ailshie, J., concur.

OPINION

STOCKSLAGER, J.

This is an original proceeding in this court to determine the right of plaintiff to conduct its business in this state without paying the annual license and taxes as provided by the Session Laws of 1901. The hearing was on a demurrer. We find the following headlines for chapter 2 of that act:

"General Provisions Dealing Entirely With Insurance Companies Other Than Fraternal Beneficiary Societies.

"Sec. 1. It shall not be lawful for any person to act within this state as an agent or otherwise in soliciting or receiving applications for insurance of any kind whatever or in any manner to aid in the transaction of the business of any insurance company incorporated in this state, or out of it, without first procuring a certificate of authority from the insurance commissioner.

"Sec. 2. It shall be the duty of the president, or the vice-president and secretary of every insurance company doing business in this state, annually, on or before the first day of April of each year, to prepare, under oath, and deposit with the insurance commissioner of this state a full, true and complete statement of the condition of said company on the last day of the month of December preceding."

Section 3 provides that the annual statement shall contain: "1. The name of the company and where located. 2. The names and residences of the officers of said company doing business in the state. 3. The amount of the capital stock or assets of the company. 4. The amount of capital stock paid up. 5. The property or assets held by the company, viz.: The real estate owned by such company; the amount of cash on hand and deposited in banks to the credit of the company; the amount of cash in hands of agents; the amount of cash in course of transmission; the amount of loans secured by first mortgage on real estate, with the rate of interest thereon; the amount of all bonds and other loans, the rate of interest thereon; all other securities, their description and value. 6. The liabilities of such company, specifying the losses adjusted and due; losses adjusted and not due; losses unadjusted; losses in suspense and the cause thereof; losses resisted and in litigation; the amounts due banks or other creditors; the amount of money borrowed by the company; the rate of interest thereon and how secured; the net value of all policies in force, circulated as per the combined experience table of mortality, at four per cent interest, and all other claims against the company, describing the same. 7. Net surplus over all liabilities. 8. The income of the company during the preceding year, stating the amount received for premiums, specifying separately health, life, fire, marine or inland premiums, deducting reinsurance; the amount received for interest and from all other sources. 9. The expenditures during the preceding year, specifying the amount of losses paid during said term; the amount paid for return premiums. 10. The amount of risk written during the preceding year."

Section 13 of the same act provides that "All insurance companies now doing business in this state, or that may hereinafter do business in this state, under the provisions of this chapter must file with the insurance commissioner annually, on or before the fifteenth day of April of each year, a statement under oath stating the amount of all premiums received by said company during the year ending December 31st preceding in this state, and the amount actually paid policy-holders during the same time, and shall pay into the state treasury a tax of two per centum on all such premiums collected, less the amount of all losses actually paid policy-holders, and premiums returned. The commissioner shall file such verified statement and schedule in his office and certify the amount of gross receipts, less amounts of losses actually paid policy-holders and premiums returned as aforesaid to the state treasurer. Within thirty days thereafter such insurance company shall pay or cause to be paid into the state treasury a tax of two per centum, or two per centum upon all such gross receipts, less such amounts of losses actually paid policy-holders and premiums returned in the state of Idaho which payment, when made, shall be in lieu of all taxes upon the personal property of such company, and the shares or stock or assets therein."

The legislature of 1903 enacted a law with the following title: "To Authorize the Organization of Mutual Co-operative Insurance Companies, to Insure Both Personal and Real Property Against Loss by Fire, Lightning, Tornado, Cyclone, Windstorm, and the Fidelity of Persons and to Regulate Their Conduct."

This act was approved March 10, 1903 (Sess. Laws 1903, pp. 74-81, inclusive).

Section 1 provides for the organization as follows: "Any number of persons residing in this state who own personal or real property of not less than $ 100,000 in value, which they desire to have insured, may associate themselves together for the purpose of mutual co-operative insurance against loss by fire, lightning, tornadoes, cyclone, windstorm and the fidelity of persons, and form an incorporated company for such purposes and issue policies. Such companies shall embody the words, 'Mutual Co-operative,' in its name."

Section 2 provides that "The articles of incorporation of such company shall be filed with the insurance commissioner for examination. If by him found to be in accordance with the provisions of this act, and the name of such company is not similar to the name of any other insurance company organized in this state, he shall thereupon deliver to such company a certified copy of the articles of incorporation, which on being recorded in the office of the recorder of the county where the principal office of such company shall be...