INSANE ASYLUM-APPOINTMENT.

The statute provides that the Assistant Superintendent of the State Insane Asylum shall be selected and appointed by the Superintendent, subject to the approval of the Board of Lunacy Commissioners.

June 27, 1905.

DR. W. W. GRANT,

President State Board of Lunacy Commissioners,

Denver, Colo.

Dear Sir-In reply to your letter dated June 26, 1905, requesting an opinion as to the appointment of an assistant superintendent of the State Insane Asylum, I would say that the law provides, first, for the appointment, of a superintendent by the Board of Lunacy Commissioners As to the assistant superintendent, the language of the statute is as follows:

"The commissioners may further provide for an assistant superintendent, who shall be a physician of at least five years' practice in his or her profession, and for such other assistants and employes as may be necessary, and they shall prescribe their duties and fix their respective, compensations. All such assistants and employes shall be selected and appointed by the superintendent, subject to the approval of the commissioners, and they shall hold their positions subject to such rules and regulations as the commissioners may prescribe."

3 Mills (Rev.), page 809.

The law authorizes the commissioners to appoint a superintendent, but they are simply to provide for an assistant superintendent and such other assistants and employes as may be necessary. I am of the opinion that, under the provisions of the foregoing statute, the assistant superintendent must be selected and appointed by the superintendent, subject, however, to the approval of the commissioners.

Respectfully yours,

N. C. MILLER,
Attorney General.

By W. R. RAMSEY,
Assistant Attorney General.

INSURANCE.

If the person termed "Financial Director" acts as an agent or solicits business in this State for a foreign life assurance company, then the license fee of two dollars should be paid for each of such so-called "Financial Directors."

November 15, 1905.

HON. E. E. RITTENHOUSE,

Deputy Superintendent Insurance,

State Capitol.

Dear Sir-I am in receipt of your communication dated October 28, 1905, enclosing printed form of application and appointment used by the Central Life Assurance Society of the United States, of Des Moines, Iowa, in securing the services of "financial directors" for said company, and requesting an opinion as to whether or not such persons are subject to the payment of the agents' license fee.

In answer thereto, I have to say that the duties of a "financial director," as shown by the form of appointment used by the company, are as follows:

First-He shall co-operate with the company in making all collections of money due the company in the county.

Second-He shall use his influence in building up the business of the company in his county,

Third-He shall assist the officers of the company as he may be able in keeping a good agent at work in his county.

Fourth-He shall be engaged in a general banking business, thus furnishing the facilities for handling the business contem. plated in this appointment.

Fifth--He shall make a full report of all funds in his possession upon the first of each month, and forward by draft all amounts due the company.

Sixth-He shall co-operate with the officers in securing choice loans at as good a rate of interest as possible, should the company desire to loan funds in his county.

Seventh-He shall report to the company any conduct upon the part of the agents or medical examiners that is detrimental to the best interests of the company."

It is further provided that for his services as such financial director he shall receive five per cent. out of the first annual premium upon all accepted and paid for business produced in his county during the term of said contract, and three per cent. of the second annual premium, also one per cent. of all renewal pre

miums thereafter in said county, whether collected by the party of the second part or paid direct to the company; and also that said contract shall continue for a period of twelve years from the date thereof.

It is also provided that in every county organized by the company there shall be appointed a "financial director," and that no appointment shall be made in the county except from among the policy holders of the company, giving preference to persons holding policies of not less than five thousand dollars on any plan other than term insurance on which the full first year's premium has been paid in cash to the company.

Section 2212, M. A. S., volume 1, page 1332, provides that every insurance company doing business in this State shall pay to the Superintendent of Insurance the following fees, viz.: For certificate of authority to transact business in this State, five dollars; for each copy of certificate of authority for use of agents, two dollars.

Section 2216, 1 M. A. S., page 1333, provides:

"It shall be unlawful for any person, company or corpora tion of this State, either to procure, receive or forward applications for insurance in, or to issue or to deliver policies for any company or companies not having complied with the provisions. of this act, or to adjust any loss, or in any manner, either directly or indirectly, to aid in the transaction of the business of insurance with any such company unless duly authorized by such company, and licensed by the Superintendent of Insurance in conformity to the provisions of this act."

Section 2217, 1 M. A. S., page 1333, provides:

*

"No company shall transact, in this State, any insurance business unless it shall procure from the Superintendent of Insurance a certificate stating that the requirements of the laws of this State have been complied with, and authorizing it to do business. * * Every such company shall be required to procure annually, for the use of its agents and solicitors, copies of such certificate of authority, and any person soliciting business for any company authorized to transact business in this State, without first procuring a certificate of the Superintendent of Insurance, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of one hundred dollars for each and every offense."

According to the foregoing provisions, if the person termed "financial director" acts as an agent or solicits business in this State for such company, then I think the license fee of two dollars should be paid for each of such directors.

It will be observed that section 2217 attaches a penalty to any person soliciting business for any company authorized to transact business in this State without first procuring a certificate from the Superintendent of Insurance.

The duties prescribed by this company for its so-called "financial director" are certainly very broad and comprehensive sufficiently so to include the right to solicit business, and such director has more authority than a regularly appointed insurance agent.

In my opinion the payment of said fees should be required. To hold otherwise would be to permit an evasion of the law under delusive names.

A foreign fire insurance company doing business in this State should not be permitted to engage also in the business of accident insurance.

December 30, 1905.

HON. E. E. RITTENHOUSE,

Deputy Superintendent Insurance,

State Capitol, Denver.

Dear Sir-In answer to your letter inquiring whether a foreign fire insurance company doing business in this State can also engage in the business of accident insurance, I beg to say that our law relating to the organization of domestic companies provides for fire, life or accident insurance, and prohibits any company so organized from issuing policies for more than one of said purposes, and also provides that no company that shall have been organized for one of said purposes shall issue policies of insurance for any other. See section 2224, volume 1, M. A. S., pages 1336-1337.

Referring to foreign corporations, our statute provides as

follows:

"And such corporations shall be subjected to all the liabilities, restrictions and duties which are or may be imposed on such corporations of like character organized under the general laws of this State, and shall have no other or greater powers." Section 499, 3 Mills (Rev.), page 244.

I am therefore of the opinion that the company represented by Mr. Bishop should not be permitted to engage in the business of both fire and accident insurance in this Státe.

Yours respectfully,

N. C. MILLER,

Attorney General.

By W. R. RAMSEY,

Assistant Attorney General.

INSURANCE.

The difference between a mutual fire insurance company and a stock insurance company is too radical to admit of a change from one to the other by amending the articles of incorporation.

The prohibition against an insurance company organized under the laws of this State adopting the name of any existing company or association transacting the same business, or a name so similar as to be calculated to mislead, applies only to domestic corporations.

January 8, 1906.

HON. A. E. BENT,

Auditor of State,

State Capitol.

Dear Sir-I return herewith the application of The National Mutual Fire Insurance Company of the state of Nebraska, with the recommendation that the compilation of papers transmitted herewith be filed and preserved in your office.

I call your attention to the amended articles on pages 8 and 9; also, to the original articles on page 6. Under the original articles, this corporation is "The Trans-Mississippi Mutual Fire Insurance Association of Omaha," and is clearly designated as a mutual company and required to do business on the mutual plan, as provided under chapter 43 of the compiled statutes of the state of Nebraska.

The original paper is entitled "Notice of Incorporation," but under the laws of Nebraska it constitutes the articles of incorporation. The amended articles on pages 8 and 9 seem to be a complete revision of the original articles.

However, the word "Mutual" appears in the title and it would seem impossible to file amended articles which would change the plan of the insurance company from mutual to stock. I do not consider that such a change could be made by