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of a special statutory character to dissolve the association and distribute the
assets to the creditors.
Dale v. Hancock County Mutual Life Ass'n, 282 Ill. App. 70 , affirmed, 363 Ill. 222,
2 N.E.2d 96 (1935). Members of a life association brought an action against its
officers and directors to enjoin them from carrying out the adoption of a new
constitution and by‐laws changing the association from an assessment benefit
society to a legal reserve system. The court held that the liquidation provisions
of the Illinois insurance code providing that certain actions against an Illinois
insurance company shall be made only by the insurance commissioner did not
apply to a controversy between the individual members and the association or
its officers to prevent the accomplishment of an act contrary to the
constitution and bylaws of the association.
Frontier Investment Corp. v. Belleville National Savings Bank, 119 Ill. App. 2d 2,
254 N.E.2d 295 (1969). A purchaser of the outstanding stock of an insolvent
insurer filed suit for the appointment of a receiver, charging the directors with
mismanagement, and asking for removal of four directors, election of new
directors, and the issuance of the stock of the company to the plaintiff. The
court held that the purchaser was not precluded from maintaining such action
by the insurance code section that limits actions for appointment of receivers
upon application of the insurance commissioner. The court reasoned that the
appointment of a receiver in such a case does not involve an area where the
commissioner has exclusive jurisdiction, as the injunction seeks only to enforce
compliance with fiduciary obligations already imposed by law upon the
directors of the insurance company. Further, the court noted that the
injunction granted was an interlocutory order, and appealable, and noted the
failure of the directors to appeal that order.
Hamilton v. Safeway Ins. Co., 104 Ill. App. 3d 353, 432 N.E.2d 996 (1982).
Plaintiffs were those entitled to uninsured motorists benefits under insurance
policies issued by the insolvent insurer, and they filed an action for injunction
against improper claims practices and for appointment of a receiver and an
order of liquidation or rehabilitation. The court held they failed to state a cause
of action because the Illinois insurance code provides that appointment of a
receiver or liquidator may be done only upon the complaint of the insurance
commissioner. Such relief is unavailable to plaintiffs because the legislature,
had it intended to grant a private right of action for injunctive relief, would
have explicitly done so.
People v. Niehaus, 356 Ill. 104, 190 N.E. 349 (1934). The court held that under
the insurance liquidation law a court of equity has no power to appoint a
receiver for such a company, as the statute expressly provides that such
appointment shall be made by the insurance commissioner and the court is
bound to recognize and accept the receiver so appointed. Further, the court
held that such provision is not void on constitutional grounds as delegating
judicial powers to an executive officer, nor is the liquidating receiver a judicial
officer. Rather the liquidator is merely an executive or administrative officer
subject to the supervising court's jurisdiction.
People ex rel. Barber v. Hargreaves, 303 Ill. App. 387, 25 N.E.2d 416 (1940).
When the State's Attorney initiated proceedings against 1,900 individuals for
allegedly transacting an insurance business without authority as an alien
Lloyd's, the court disallowed the proceedings, holding that the authority to
determine statutory compliance by an insurance company pursuant to the