Chicago Life Insurance v. Auditor of Public Accounts

Citations

• 101 Ill. 82
• 1881 Ill. LEXIS 50

Syllabus

<p>1. Dissolution of insurance companies—constitutionality of act of 1874. The statute of 1874, which authorizes the Auditor to take proceedings for the dissolution of a life insurance company organized in this State under a special charter, granted prior to the passage of that act, whenever he shall be of opinion that such company is insolvent, or its condition is such as to render its further continuance in business hazardous to the insured therein, or to the public, or when the company has failed to comply with the rules, restrictions or conditions provided by law, is not unconstitutional, as impairing the obligation of contracts, especially when such a company has accepted an amendment of its charter, which declares that it shall not be deemed to exempt the company from the operation of such general laws as might afterwards be passed.</p> <p>2. Same—act whether special, regulating practice in courts. A statute for the dissolution of insurance companies for insolvency, etc., and providing the mode of procedure to have such corporations dissolved, which applies alike to all insurance companies, is not a special law regulating the' practice in courts of justice, within the prohibition of see. 22 of art. 4 of the constitution of 1870.</p> <p>3. Same—change of remedy against insolvent -compa/ny. The general Insurance law of 1869 provided, that on notice by the Auditor an insurance company should cease issuing policies, where its assets were not equal to its liabilities, until its funds should be made equal to its liabilities. In 1874, another and different penalty was provided for. insolvency, etc., viz: a dissolution of the corporation: Held, that the legislature had the right to change the penalty and remedy, and that the later law must govern.</p> <p>4. Same—evidence sustaining a decree of dissolution. By the charter of a life insurance company, $100,000 of stock had been subscribed as required, but only ten per cent thereof had been paid in, and the evidence show