Drake v. United States ex rel. Bates
Drake v. United States ex rel. Bates
Opinion of the Court
delivered the opinion of the Court:
The right of the petitioners is founded on sec. 654 of the Code [31 Stat. at L. 1292, chap. 854], which is part of the subchapter 5 of chapter 18, relating to corporations. So much of the same as is pertinent is here given:
“Sec. 654. Insurance Agents. — No person, firm, or corporation shall act as agent for any insurance company or association, or act as insurance broker or agent for procuring or placing insurance for commissions, compensation, gain, or profit, without first having obtained a license as an insurance agent or broker from the superintendent of insurancce of the District. Every such license certificate shall have printed conspicuously upon its face the words ‘general insurance license,* and for such license the sum of fifty dollars shall be paid annually in the month of' March to the collector of taxes of said District. * * * No person, firm or corporation, or association shall allow or pay any commission, rebate, or compensation whatever, directly or indirectly, to, for, or in behalf of
The respondent, as superintendent of insurance, relies upon the power to make regulations relating to the licenses required by sec. 654, as conferred by other sections. Sec. 645, which creates the oifice of superintendent, contains this clause: “Said superintendent shall have supervision of all matters pertaining to insurance companies and beneficial orders and associations, subject only to the general supervision of the commissioners.” Sec. 646 provides in its first clause: “It shall be the duty of the said superintendent to see that all laws of the United States relating to insurance or insurance companies, benefit orders, and associations doing business in the District are faithfully executed.” The section then proceeds to make regulations for the permission of such companies to do business in the District. The concluding sentence of the section reads: “Said superintendent shall have power to make such rules and regulations, subject to the general supervision of the commissioners, not inconsistent with law, as to make the conduct of each company in the same line of insurance to conform in doing business in the District.” A number of other sections prescribe many requirements to be complied with by companies doing business in said District, which relate to their reports, capital required, deposits of money by foreign companies, and so forth, besides similar reports to be made by local companies. Sec. 645 to 653 inclusive.
O'1 January 30, 1902, the superintendent addressed a com
It is quite clear that no provision of the law conferred or attempted to confer upon the superintendent of insurance the
All insurance companies are compelled to comply with the provisions of the several sections relating to them before they can carry on business through, or issue insurance at the request of, any licensed agent or broker. The companies are-under no obligation' to apply for licenses for their agents or brokers. They must apply for their own licenses, and, if located outside the District, must appoint some suitable person as attorney upon whom legal process may be served. Sec. 646.. All that persons who propose to take out the “general insurance-license” are required to do is to apply therefor to he superin
Believing that the court was right in ordering the mandamus to issue, the judgment is affirmed, with costs.
Affirmed.
Reference
- Full Case Name
- DRAKE v. UNITED STATES EX REL. BATES
- Cited By
- 4 cases
- Status
- Published
- Syllabus
- Insurance; Officers; Superintendent of Insurance; Brokers and Agents; Licenses; Statutes; Mandamus. 1. The superintendent of insurance of this District has no power to make and enforce an interpretation of the laws of the District relating to insurance companies, agents, or brokers, such power being a judicial one, which can be exercised by the courts aloné. 2. Sec. 646 D. 0. Code (31 Stat. at L. 1290, chap. 854), giving to the superintendent of insurance of this District power “to make such rules and regulations, subject to the general supervision of the commissioners, aot inconsistent with law, as to make the conduct of each company in the same line of insurance to conform in doing business in the District,” does not authorize the superintendent to make regulations for the classification of persons required to take out “general insurance licenses,” by the provisions of sec. 654, D. 0. Code, which requires insurance brokers and agents to take out such licenses. 3. When an insurance broker or agent takes out a license under see. 654, D. C. Code, he may act as agent of any company or companies and may procure insurance in any company authorized to do business in the District; and insurance companies doing business in the District of Columbia are under no obligation to apply for licenses for their brokers or agents. 4. In respect to issuing general insurance licenses to persons desiring to do business as insurance brokers or agents in this District, the superintendent of insurance is a ministerial officer, vested with no discretionary power to refuse such a license when the statutory fee is' paid or tendered; and he may be compelled by mandamus to issue such a license upon compliance of the applicant with such condition. (Fol- * lowing Maefarland v. United States, 18 App. D. C. 554.)