The filed Objections of Governor Baker to Mr. Underwood's Life Insurance Bill.
Executive Department, Indianapolis, March 9, 1869.
Enrolled Act of the House of Representatives, No. 60, entitled "An act for the Incorporation and Continuance of Insurance Companies; authorizing them to Reissue their Risks; exempting certain Policies of Life Insurance from Attachment by Creditors; making all Policies Non-forfeitable after two full annual Payments; Repealing all laws and parts of laws inconsistent therewith, and declaring an Emergency," was presented to me at this Department on the afternoon of the 5th day of March, 1869.
On the morning of the previous day each House of the General Assembly was deprived of a quorum by the resignation of seventeen Senators and thirty-seven Representatives.
The Constitution, Article V, section 14, provides that "No bill shall be presented to the "Governor within two days next previous to the final adjournment of the General Assembly." If the resignation of a sufficient number of members to break the quorum in each House operates as a final adjournment of the General Assembly, within the meaning of the provision above cited, then the bill in question was not presented in time ; and I object to its becoming a law on that ground.
As, however, the non-resigning members--although less than a quorum, and, therefore, not competent to transact business--remained in session until the 8th day of March, 1869, when the session expired by constitutional limitation, in my judgment the final adjournment of the General Assembly did not take place until the day last named.
The same section of the Constitution further provides, that, "If any bill shall not be returned by the Governor within three days, Sundays excepted, after it shall have been presented to him, it shall be a law without his signature, unless the general adjournment shall prevent its return; in which case it shall be a law, unless the Governor within five days next after such adjournment, shall file such bill, with his objections thereto, in the office of the Secretary of State." Now, as the bill under consideration was presented to me on the afternoon of Friday, March 5,1869, on the supposition that the general adjournment contemplated by the Constitution did not take place until Monday, March 8th, as before intimated, I was prevented by the general adjournment from returning it within three days, Sunday excepted, from the time of its presentation, and therefore if I wish to object to its becoming a law at all, I must do so by filing the bill, with my objections thereto, in the office of the Secretary of State within five days next after such adjournment. This I now proceed to do.
The object of the bill seems to be threefold, namely:
- . To provide for the incorporation of Life Insurance Companies.
- . To compel existing Life Insurance Companies under severe penalties, to adopt the provisions and conform to the requirements of the bill.
- . To regulate the business of Life Insurance to a certain extent, no matter by whom conducted, and especially to throw restraints around the agents of Foreign Companies doing a Life Insurance business in this State.
I object to the bill because it would be almost wholly inoperative to accomplish either of these objects.
As a means of incorporating Insurance Companies it is very defective. It contains none of the details necessary to perfect such important organizations. It contemplates that there should be stock subscriptions to the amount of at least $100,000, but it fails to divide the stock into shares or to designate of what amount each share shall consist. It contemplates a President, Secretary and Directors, but makes no provision for their election; nor does it prescribe the number of directors. The voting power or capacity of stock held, is also undefined.
The Constitution in terms, requires that "dues from Corporations other than banking shall be secured by such individual liability of the corporators, or other means as may be prescribed by law." This bill does not pretend to prescribe any security for the dues of the corporation to be created under it, either by rendering the corporators individually liable or by any other means.
The second object as before suggested, contemplated by the bill, is to compel existing Life Insurance Companies under severe penalties, to adopt its provisions, and conform to its requirements; this is a matter clearly unattainable by such legislation. Franchises granted to existing Companies have become matter of contract, and cannot be withdrawn or impaired at the pleasure of the Legislature. The Legislature ought not to prescribe heavy penalties page: 36[View Page 36] for doing the very things which they have authorized existing Companies by previous legislation to do. The prescribing of penalties which cannot be enforced has a tendency to beget a disrespect for law and for the authority of the law making power.
As for the third or last object sought to be attained by the bill, namely: the restraining of agencies of Foreign Life Insurance Companies, the bill would be entirely inoperative, as the title is too limited to justify any such legislation under it. The title relates exclusively to the incorporation and continuance of Domestic Insurance Companies; and all that is attempted by the bill in relation to Foreign Agencies is not expressed in the title, nor matter properly connected with the subject therein expressed. I think the bill is so manifestly an act of hasty and ill-considered legislation that it ought not to go upon the statute book until each house shall have had an upportunity to reconsider it. For these reasons I file said bill with these my objections thereto, in the office of the Secretary of State within five days next after the final adjournment of the Legislature, to the end that the General Assembly may, at its next session, have an opportunity to reconsider the subject.
CONRAD BAKER, Governor.
