Gent v. Manufacturers & Merchants' Mutual Insurance

Citations

• 107 Ill. 652
• 1883 Ill. LEXIS 310

Syllabus

<p>1. Corporation—can not contract until brought into being. A corporation must have a full and complete organization and existence as an entity before it can enter into any kind of a contract or transact any business. Nor have the incorporators bringing it into being any power to bind it by contract, unless so authorized by the charter.</p> <p>2. Insurance company—can not insure before its complete organization. Until a mutual fire insurance company has fully completed its organization by filing the certificate of the Auditor of Public Accounts with the county clerk that the corporators have deposited the requisite capital stock, the transaction of business in the name of the corporation is unauthorized.</p> <p>3. The corporators or promoters of a proposed mutual fire insurance company are authorized to take applications for insurance, and premium notes, as a fund or capital to authorize the granting of the charter, and to enable the company to transact its business when organized; but, prior to organization, the making of an application and giving a premium note is only a proposition to insure in the company, and to receive a policy when the company shall have become capable of contracting and transacting business.</p>