G.R. No. L-45210; April 5, 1939
ORIENT PROTECTIVE ASSURANCE ASSOCIATION, INC., plaintiff-appellant, vs. ANTONIO RAMOS, Acting Insular Treasurer, defendant-appellee.

FACTS

The plaintiff, a mutual benefit association incorporated as “Orient Protective Association,” was granted a license by the Insular Treasurer conditioned on removing the word “assurance” from its name. The plaintiff amended its articles of incorporation to include “assurance” and registered the change. The Insular Treasurer, after investigation, found multiple violations including failure to issue receipts, unsound financial condition (net deficit), lack of required reserves, improper handling of cash, and use of the unauthorized name. The license was revoked under the Administrative Code. The plaintiff sued to enjoin the defendant from eliminating “assurance” and challenging the revocation.

ISSUE

Whether the Insular Treasurer had the legal authority to revoke the plaintiff’s license to operate as a mutual benefit association.

RULING

Yes. The Insular Treasurer acted within his legal authority. Under the Administrative Code, as amended, mutual benefit associations are subject to the supervision and examination of the Insular Treasurer, who may revoke a license for valid cause. The investigation revealed the plaintiff was in an unsound financial condition (insolvent) and had committed multiple violations of treasury rules and the Administrative Code. Additionally, the use of “assurance” was misleading, making the public believe it was an insurance company. The revocation was justified, and the lower court’s decision dismissing the complaint was affirmed.

AI Generated by Armztrong.