Appeal, No. 14, May T., 1955, from decree of Court of Common Pleas of Dauphin County, 1954, No. 2132, in case of Bunker Hill Mutual Insurance Company v. Artemas C. Leslie, Insurance Commissioner of the Commonwealth of Pennsylvania. Decree affirmed.
Ralph B. Umsted, for appellant.
Ralph S. Snyder, deputy Attorney General, with him Edward L. Springer, Deputy Attorney General, Joseph L. Cohen, Assistant Deputy Attorney General, John Skelton, General Counsel, Insurance Department, and Herbert B. Cohen, Attorney General, for Commonwealth of Pennsylvania, appellee.
Before Stern, C.j., Stearne, Jones, Chidsey, Musmanno and Arnold, JJ.
OPINION BY MR. JUSTICE MUSMANNO
On September 27, 1954, the Insurance Commissioner of Pennsylvania suspended the business operations of
the Bunker Hill Mutual Insurance Company because its books failed to show that it had set up a reserve for unearned premiums on its non-assessable fire insurance policies, which liability, had it appeared on the books, would have resulted in a Company deficit of $118,498.75. On October 1, 1954, the Company sought to restrain the enforcement of the suspension order by filing a Bill in Equity to that purpose. The Commonwealth filed a responsible Answer. Since no factual dispute was involved, a case stated was agreed upon and the Court dismissed the Bill. This appeal followed.
Section 807 of the Insurance Company Act of 1921, Act of May 17, 1921, P.L. 682, requires mutual insurance companies, other than mutual life companies, to maintain premium reserves upon the same basis as that required of domestic stock companies transacting the same kind of business. These reserves must be maintained only on those policies which are non-assessable. The appellant Company contends that it is not bound by the Act of 1921 with regard to posting unearned premium reserves as a liability in determining its surplus or net worth, because it never accepted the Act of 1921.
Bunker Hill Mutual Insurance Company was incorporated under a special act of assembly of the Commonwealth of Pennsylvania, the Act of April 28, 1840, P.L. 468, as "Crawford County Mutual Insurance Company."*fn1
Its name was changed by amendment approved by the Governor on June 8, 1950. At that time, the Company's its purposes as ...