Samson v. State

DRAPEAU, J. pro tem. By his amended complaint the plaintiff alleges that the defendant, the State of California, and its officers in the Department of Motor Vehicles, have-demanded the surrender of his driver’s license, and the license plates for his automobile, because of his failure to pay a judgment against him for damages caused by his negligent operation of said automobile; that he was insured against this casualty in a Nevada corporation, which has failed to pay the judgment, and which is now in receivership; that when the state officers demanded the surrender of his license and of his plates, he filed with the' Department of Motor Vehicles an affidavit setting forth that he was insured by said corporation; that notwithstanding this the. department still insists on the surrender of his license plates and threatens to proceed against him in the criminal courts if he does not do so. The prayer of the complaint is for injunctive relief.

Demurrer was sustained without leave to amend, with judgment for the defendant, from which plaintiff has appealed.

The only question involved is whether plaintiff by his complaint brings himself within the. provisions of section 411.5 of the Vehicle Code, and particularly within that portion of the section reading as follows:

“If the department is satisfied from such papers that such insurer was authorized to issue such policy of insurance in the State of California at the time of issuing such policy and that such insurer is liable to pay such judgment, at least to the extent and for the amounts hereinbefore provided in this, chapter,, .the. department -shall not- suspend, such license [196]or licenses and such certificate or certificates, or if already suspended, shall reinstate them.” (§ 411.5, Motor Vehicle Code, as amended Stats. 1939, p. 2321.)

The Insurance Code provides that “A person shall not transact any class of insurance business in this State without first being admitted for such class. Such admission is secured by procuring a certificate of authority from the commissioner. Such certificate shall not be granted until the applicant conforms to the requirements of this code and of the laws of this State prerequisite to its issue.” (Ins. Code, § 700.) Insurance companies organized in other states are permitted to transact business in California upon complying with the requirements of the Insurance Code, designed to secure an examination by the Insurance Commissioner to determine, among other things, the solvency of such organizations.