Republic Life Insurance v. Swigert

Citations

• 135 Ill. 150
• 12 L.R.A. 328

Syllabus

<p>1. Insurance companies—dissolution—powers of the Auditor—constitutionality of the act of 1874. Section 1 of the act of 1874, in regard to the dissolution of insurance companies, which authorizes the Auditor of State to institute proceedings in equity to wind up the concerns of such companies, when he is of opinion, upon examination of their affairs, that they are unsafe, is not unconstitutional, but is a valid law.</p> <p>2. Same—powers of receiver—how acquired—deed of transfer not necessary. In a proceeding by the Auditor to close the affairs of an insurance company, the statute does not require the company to execute a deed of assignment of its property to the receiver, when appointed, but the property rights of the company are, by force of the statute and the decree of the court, committed to the receiver, to be administered upon as the court may direct.</p> <p>3. Same—powers of receiver—statutory—and such as are conferred by order of court—or by deed of assignment. The powers of a receiver specially designated in the statute relating to insurance companies, are not materially different from those of an assignee under the Voluntary Assignment act. In both acts the powers specified are limited to the enforcement of property rights derived from the corporation or assignor.</p> <p>4. It is not a power inherent in the court of chancery, and it is not in conformity with the course of procedure and practice which ordinarily obtains in equity, for the court to clothe its receiver with power to seize and enforce a property right which belongs only to parties who are not before the court and who are not asking its assistance.</p> <p>5. Where a court of chancery, on the petition of the State Auditor, appoints a receiver to wind up the business of an insiu-ance company, it is error for the. court to direct the receiver to institute suit against the shareholders to collect their subscriptions to the capital stock, after the company has, by contract, put it out of its own