People ex rel. Ocean Accident & Guarantee Corp. v. Van Cleave

• Decision Date: 19 October 1900
• Citation: 58 N.E. 422,187 Ill. 125
• Court: Illinois Supreme Court
• Parties: PEOPLE ex rel. OCEAN ACCIDENT & GUARANTEE CORP., Limited, v. VAN CLEAVE, Insurance Superintendent.

187 Ill. 125

58 N.E. 422

PEOPLE ex rel. OCEAN ACCIDENT & GUARANTEE CORP., Limited,

v.VAN CLEAVE, Insurance Superintendent.

Supreme Court of Illinois.

Oct. 19, 1900.

Action by the people, on the relation of the Ocean Accident & Guarantee Corporation, Limited, for a writ of mandamus against James R.B. Van Cleave, state insurance superintendent. Writ granted.

1. Act April 21, 1899 (Laws 1899, p. 237), “to incorporate and to govern casualty insurance companies,” etc., by section 1 authorizes the incorporation of companies “for the purpose of issuing policies for any of the following kinds of insurance business.” Then follow seven subdivisions enumerating insurance against (1) accidents, (2) employer's liability, (3) loss of credits, (4) burglary or theft, (5) breakage of glass, (6) explosion or accidents to boilers and elevator machinery, (7) other lawful casualty risks. Section 2 provides, among other things (subdivision 6), that the charter of such company shall show the nature and kind of business to be transacted, which may include such kinds of business as are specified under subdivisions 1 and 2 of section 1 hereof, or under subdivisions 3, 4, 5, 6, and 7 of section 1 hereof.” Held, that the latter provision does not have the effect of separating the kinds of insurance enumerated into two groups, so as to preclude a company which does the kind of business specified in subdivisions 1 and 2 from doing any or all of those specified in the other subdivisions, or vice versa, no reason being apparent for such separation, but that the word “or” in the language quoted should be construed to mean “and,” giving a company the right, on compliance with the act, to do any or all of the kinds of business specified.

2. Such act having provided for the licensing of foreign companies to do business in the state, the effect is to place them on the same footing as domestic companies, and on compliance with the requirements of the act a foreign company is entitled to a license to transact any or all of the kinds of insurance business enumerated therein for which it may qualify itself.

Boggs, C.J., and Carter, J., dissenting.

This is an original petition, filed in this court at the June term, 1900, by the people, upon the relation of the Ocean Accident & Guarantee Corporation, Limited, a foreign corporation organized and existing under an act of parliament of the kingdom of Great Britain and Ireland, asking for a writ of mandamus commanding the defendant, the state insurance superintendent, to grant and issue to the petitioner a license to transact in the state of Illinois all of the six lines of insurance set forth in subdivisions numbered from 1 to 6, inclusive, of section 1 of “An act to incorporate and to govern casualty insurance companies, and to control such companies of this state and of other states doing business in the state of Illinois, and providing and fixing the punishment for violation of the provisions thereof, and to repeal all laws now existing which conflict therewith,” approved April 21, 1899, in force July 1, 1899. Laws 1899, p. 237. The defendant has interposed a demurrer to the petition. The above-entitled act of April 21, 1899, so far as it is necessary to set the same forth in order to understand the questions raised by the demurrer to the petition, is as follows:

“Section 1. Be it enacted by the people of the state of Illinois, represented in the general assembly: That any number of persons not less than thirteen, may, in the manner hereinafter prescribed, form a corporation for the purpose of issuing policies for any of the following kinds of insurance business: First-Insuring any person against bodily injury, disablement or death resulting from accident, and providing benefits for disability caused by disease. Second-Insuring against loss or damage resulting from accident to, or injury suffered by, an employee or other person for which accident or injury the person insured is liable. Third-To guarantee or indemnify merchants, traders and all others engaged in business and giving credit therein from loss or damage by reason of giving or extending credit to their customers. Fourth-Against loss by burglary or theft, or both. Fifth-Upon glass against breakage. Sixth-Upon steam boilers and pipes, engines and machinery connected therewith or operated thereby; against explosion and accident and loss or damage to life or property resulting therefrom and to make inspection of and to issue certificates of inspection upon such boilers and pipes, engines and machinery; also upon elevators and machinery forming a part thereof and to make inspection and to issue certificates of inspection upon the same. Seventh-Against any other casualty or insurance risk specified in the article of organization, which may lawfully be the subject of insurance and the formation of corporation for insuring against which is not otherwise provided for by these statutes.

“Sec. 2. Such persons shall make, sign, acknowledge and file in the office of the insurance superintendent a declaration of their intention to form a company under the provisions hereof, which declaration shall contain a copy of the charter proposed to be adopted by them, which charter shall state: First-The name of the corporation and the place where the principal office for the transacting of business shall be located. Second-The amount of capital stock, the number of shares thereof and the amount of each share. Third-The designation of the general officers and the number of directors or trustees. Fourth-The mode and manner of electing directors or trustees, filling vacancies in their number and their term of office. Fifth-The period for the commencement and termination of their fiscal year. Sixth-That they associate for the purpose of transacting the business of casualty insurance, stating the nature and kind thereof, which may include such kinds of business as are specified under subdivisions 1 and 2 of section 1 hereof, or under subdivisions 3, 4, 5, 6 and 7 of section 1 hereof, and that no policy shall embrace more kinds of insurance than are specified in one of the subdivisions named in section 1 of this act. * * *

“Sec. 3. No such corporation for any of the purposes specified in this act shall do business with a capital stock of less than $100,000.00 fully paid in in cash, with an additional $50,000.00 fully paid in cash for every kind of insurance, more than one, which it is authorized to do: provided, that it may not do the business named in subdivision 2 of section 1 hereof on a capital of less than $200,000.00 fully paid in in cash. * * * ”

“Sec. 7. Any casualty insurance corporation organized under the laws of any other state or foreign country may be admitted to transact business in this state by filing with the insurance superintendent for his approval, the following documents and papers: First-An application for license to do business in this state, setting forth the full name of the corporation, the location of its principal office of business, and, separately, the several kinds of business to be transacted. * * * Second-A certificate of deposit from the state official, having the custody of the securities showing to the satisfaction of said insurance superintendent that the corporation has the amount of funds required by this act to be deposited by companies incorporated in this state invested in securities deposited with the superintendent of the insurance department, state treasurer or other proper officer of the state in which it is incorporated, if incorporated in the United States, and if a foreign corporation, then in some one of the states of the United States. * * * Third-A duly certified copy of its charter and by-laws together with a certificate from the insurance superintendent or other proper officer of the state wherein incorporated, that the corporation is duly organized and licensed to transact the business of casualty insurance in such state, stating separately the different kinds of insurance as provided in section 1 of this act. * * * Fourth-A complete statement of the financial condition of the corporation. All such corporations admitted to transact business in this state must comply with the laws governing like corporations organized under the laws of this state, except that such corporations as are at the date of the passage of this act admitted to transact in this state more than four of the kinds of business named in subdivisions of section 1 hereof, may continue such business on a capital of not less than $200,000.00, and all such corporations and all persons acting as agents thereof shall be subject to the same penalties prescribed by these statutes relating thereto for a violation of any of the provisions thereof and to the same methods for the enforcement of such penalties. The said company shall apply annually to the insurance superintendent for a certificate for each of its agents to do business in this state.”

It is alleged in the petition that in and by its charter petitioner is authorized to transact a general insurance business, including the various lines of insurance named in subdivisions from 1 to 6, inclusive, of section 1; that in April, 1898, petitioner filed with the defendant application for license to enter into and transact lines of business in Illinois known as “credit insurance,” being the line of insurance mentioned in subdivision 3 of section 1, as above set forth, in accordance with the laws of Illinois; that petitioner in all other respects did comply with the laws of Illinois concerning the issuance of said license; that defendant issued to petitioner a license to transact in Illinois the business of credit insurance; that petitioner complied with the laws of Illinois in regard thereto, and entered upon said business within this state, and has continued to transact the same ever since; that petitioner afterwards, in April, 1899, made application to defendant, as state...