Page:Federal Reporter, 1st Series, Volume 1.djvu/483

EHKMA.N V. TEUTONIA INS. CO. 475 �Teceived authority agreeably to the provisions of the act, are subject to a penalty of $500 for each month or fraction thereof during which such illegal business is transacted." Section 3562. �The objects sought to be obtained by this act are security and protection to policy-holders, and revenue to the state, but chiefly the former. By failing to comply with the require- ments of the act the companies, and their agents and brokers, render themselves liable to the penalties denounoed by the act, but such f ailure does not afEect the validity of the policies issued by them, or in any manner operate to the prejudice of the policy-holders. Union Mutual Ins. Co. v. McMillen, 24 Ohio, St. 67 ; Clay Fire Ins. Co. v. Huron Sait Co. 31 Mioh. 346; CoÎMm^Ms Ires. Co.v. WTais/i, 18 Mo. 229; Lambv.Bowsert 7 Bissell, 315; S. C. Id. 372; Hartford Live Stock Ins. Co. v. Mathews, 102 Mass. 221. �The leading provision for the protection of the policy-holder is contained in section 3561. This section is a literal copy of the Pennsylvania statute. See Ex parte Schollenherger, 96 U. S. 369-374, where it is set forth at length in the opinion of the court. So much of it as is material to this case reads as follows: "No Insurance company, not of this state, nor its agents, shall do business in this state until it has filed with the auditor of state of this state a written stipulation, duly authenticated by the company, agreeing that any legal pro- cess affecting the company, served on the auditor of state, or the party designated by him, or the agent speeified by said company to receive service of process for the company, shall bave the same eflfect as if served personally on the company within this state." �The supreme court of the United States, speaking of a sim- ilar provision in a statute of Ohio, say : "We iind nothing in this provision either unreasonable in itself or iji conflict with any principle of public law. It cannot be deemed unreason- able that the state of Ohio should endeavor to seoure its citi- zens a remedy, in their domestic forum, upon this important class of contraets made and to be performed within that state and fuUy subject to its laws ; nor that proper means shoulc! ��� �