State ex rel. Physicians' Defense Co. v. Laylin

Citations

• 73 Ohio St. (N.S.) 90

Syllabus

<p>Foreign corporation for the purpose of defending physicians and, surgeons against prosecution for malpractice — But not agreeing to pay judgment against physician — Is not engaged in the insurance business — Such corporation not entitled to transact business in Ohio — Section 3235, Revised Statutes— Insurance law.</p> <p>1. A foreign corporation, the sole business of which as authorized by its charter, is that of defending physicians and surgeons against civil prosecution for malpractice, which, in the prosecution and conduct of said business, issues and sells to members of the medical profession a contract whereby it undertakes and agrees to defend the holder of said contract against any suit for malpractice that may be brought against him during the term therein specified, but does not assume, or agree to assume or pay, any judgment that shall be rendered against him in such suit, is not engaged in the business of insurance, nor is the contract so issued and sold an insurance contract.</p> <p>2. But a foreign corporation created for the purpose of engaging in and carrying on such business, is not entitled to have or receive from the secretary of state of the state of Ohio, a certificate authorizing it to transact such business in this state, for the reason that the business proposed is professional business, and as such is expressly prohibited to corporations by section 3235 of the Revised Statutes of Ohio.</p>