126 Iowa 643 | Iowa | 1905
On or about" April 15, 1902, there were issued to plaintiffs two policies of insurance — one by the Great Britain Insurance Corporation, Limited, of London, England, and the other by the Northwestern Fire Insurance Company of Chicago, Ill., for $1,000 each — covering their implement warehouse and feed mill, together with machinery, etc., located at Low Moor for one year. The property was destroyed by fire in June following, and subsequently judgments were obtained against each company for $950. These have not been collected, and in this action recovery is sought against the defendant on the ground of negligence in acting as agent without authority for companies not entitled to do business in the State and insolvent when the policies were issued- The petition also stated "a cause of action for deceit, but this was not submitted to the jury. It appears that some time in February, 1902, defendant had solicited the plaintiffs for insurance, and, as recording agent, issued to them a policy in another company; but this was canceled, owing to its rule against carrying risks on feed mills. Some farther effort was made, when defendant advised them he mighj; be able to get the risk written through the agency of a firm in Chicago, and with plaintiffs’ approval he addressed a letter to O. A. Van Anden & Co., saying: “ Can you place the enclosed ■ risk for me ? * * * Place it in the best company you have. Send statement of company.” In response to this Van Anden h
By section 1721 of the Code foreign companies are prohibited from directly or indirectly taking risks or transacting any insurance business in this State, unless possessed of $200,000 of actual paid-up capital; and by the section following, as a condition precedent to doing business, each is required to file with the Auditor of State authority to accept service of notice of the beginning of suit:
A certified copy of its charter or deed of settlement, together with a statement under oath of the president, vice president or other chief officer and the secretary of the company for which they may act, stating the name of the company, the place where located, the amount of its capital, with a detailed statement of the facts and items required from companies organized under any law of the State in which such company was incorporated; and no agent shall be allowed to transact business for any company whose capital is impaired by liabilities as specified in this chapter to the extent of twenty per cent, thereof, while such deficiency shall continue.
Only upon compliance with these requirements will any foreign company become entitled to do business and receive a certificate from the Auditor of State. Section 1724, Code.
Any officer, manager or agent of any insurance company or association who, with knowledge that it is doing business in an unlawful manner, or is insolvent, solicits insurance with said company or association, or receives applications therefor, or does any other act or thing towards procuring or receiving any new business for such company or association shall be guilty of a misdemeanor, and for every such act, on conviction thereof, shall be adjudged to pay a fine of not less than one hundred nor more than one thousand dollars, or be imprisoned in the county jail not- exceeding one year, or be punished by both such fine and imprisonment.
Section 1748:
Any president, secretary or other officer of any company organized under the laws of this State, or any officer or person doing or attempting to do business in this State for any' insurance company organized either within or without this State, failing to comply with any of the requirements of this chapter, or violating any of the provisions thereof shall bo fined in a sum not exceeding one thousand dollars, and be imprisoned in the county jail for a period of not less than thirty days nor more than six months.
Issuing these policies and delivering them to plaintiffs was doing business in this State within the meaning of these statutes. Seamans v. Zimmerman, 91 Iowa, 363; Fred Miller Brewing Co. v. Council Bluffs Ins. Co., 95 Iowa, 31.
In Morton v. Hart, the court, after referring to statutes substantially like those of this State, said:
Tbe defendants were undertaking to do an unlawful and prohibited business. In such undertaking they must be held to guaranty the solvency of the concern they represent to the extent of the requirements of our statutes as cited, and that losses will be paid here. The law was intended to protect the citizen policy holder, and give him redress in the courts of this State. If the company was not worth $200,000 in actual paid-up cash capital, the undertaking of the agent supplies that want for the benefit of the insured; and, if loss occurs, the agent must respond to the insured, and look to his principal for indemnity.
See McCutcheon v. Rivers, 68 Mo. 122. Expressions contrary to this view may be found in Jones v. Horn, 104 Mo. App. 105 (78 S. W. Rep. 638), but the decision is based upon the failure to prove the company for whom Horn acted, insolvent.