Two-thirds of the votes cast at a meeting of the insured determines the question of transfer or reinsurance; such votes may be cast by proxy.

INSURANCE-NATIONAL LIVESTOCK INSURANCE COM- PANY, OF ST. LOUIS, MISSOURI. April 16, 1907. Hon. John C. Billheimer, Auditor of State, Indianapolis, Indiana: Dear Sir-I am in receipt of your favor of the 10th inst., ask- ing whether a partnership, under our law, can operate in Indiana as an insurance company and do a general insurance business. You enclose certain literature published by the National Live Stock Insurance Company of St. Louis, Missouri, together with their live stock insurance contract. You state that this company is an unlimited partnership. I infer your inquiry is confined to partnerships attempting to write only live stock insurance in this state. The statute govern- ing this class of contracts (Burns' Stats. 1901, section 4955) con- tains this requirement: "The provisions of this act shall apply to all individuals and parties, and to all companies and associations, whether incorporated or not, now or hereafter engaged in the issu- ance of live stock, except mutual companies organized by the farmers of this state, aid it is unlawful for any cor- poration or association, whether organized in this state or elsewhere, either directly or indirectly, to engage in the business of insuring live stock or enter into any contract substantially amounting to insurance on live stock or in any manner to aid therein, in this state, without first hav- ing complied with all the provisions of this act." Section 4947 prescribes certain conditions to be performed before foreign companies can do an insurance business in Indiana. I am of the opinion, in the light of the above sections of the statute, that the National Live Stock Insurance Company may be admitted to operate within this state, upon complying with the provisions of the statutes of Indiana relating to live stock in- surance. INSURANCE-TRANSFER OR. REINSURANCE OF RISKS IN SOME OTHER COMPANY. April 15, 1907. Hon. John C. Billheimer, Auditor of State: Dear Sir-I am in receipt of your communication of the 11th inst., asking for my interpretation of section 25 of the act of the general assembly, approved February 10, 1899 (Acts 1899, p. 39). This section reads as follows: "No corporation organized or doing business under this act shall transfer its risks to or reinsure them in any other corporation, association or society, unless the con- tract of transfer or reinsurance is first submitted to and approved by a two-thirds vote of a meeting of the insured, called to consider the same, of which meeting a written or printed notice shall be mailed to each policy holder, at least thirty days before the day fixed for such meeting. No such corporation organized or doing business under this act, shall transfer its risks or assets, or any part thereof, to or reinsure its risks, or any part thereof, in any insur- ance corporation, association or society of any other state or county, which is not at the time of such transfer or re- insurance authorized to do business in this state under the laws thereof: Provided, however, That the foregoing declaration shall not prevent a company from reinsuring half of its over-average policies in other solvent companies authorized to do business in this state by paying therefor agreed premiums in annual, semi-annual or quarterly in- stallments. " Particularly, you ask whether a two-thirds vote of all the policy holders is required, or only this proportion of those pres- ent or represented at the called meeting; and whether votes by proxy may be counted. The purpose of the above section was to allow the policy holders to decide the question respecting the expediency of a transfer or reinsurance of risks. The contract of reinsurance or transfer might have a material effect upon the rights of the in- sured against the original insurer. It could be so drawn as to leave the latter's liability unaffected, or it might act as a nova- tion and release the reinsured company altogether, as to those consenting thereto (24 Amer. & Eng. Ency. Law, pp. 258, 259) ; hence the propriety of submitting the matter to a vote of those most interested. The act does not require a -unanimous vote of all the insured; nor a two-thirds vote of "the insured," or of all policy holders. The language is: "Unless the contract of transfer or reinsur- ance is first submitted to and approvdd by a two-thirds vote of a meeting of the insured." The submission is to be made at "a [11-19895] meeting of the insured," not to "the insured," or to "a meet- ing of all the insured." The vote must be a two-thirds vote of such meeting. The act expressly requires that notices of this meeting shall be sent to "each policy holder," and if the legislature intended that two-thirds of all policy holders must vote for reinsurance or transfer before the same could be accomplished, it would not have been as explicit as it was in requiring that each policy holder must be notified of the meeting. I am, therefore, of the opinion that two-thirds of the votes cast at the called meeting determines the question of transfer or reinsurance. Replying to your second question, my view is that proxies may be voted. It ought, in principle, to make no difference whether the interested policy holder votes in person or by his duly ap- pointed agent. The object of the statute is to obtain an expres- sion from as large a proportion of the policy holders as possible. This can be done by proxy voting; and to interpret the law otherwise might, as a practical matter, result in ignoring the preferences of large numbers of policy holders who are prevented by distance, sickness or otherwise from attending the meeting. APPROPRIATIONS---WHEN CERTAIN APPROPRIATIONS FOR CUSTODIAN BECOME AVAILABLE. April 22, 1907. Hon. Otway A. Baker, Custodian of Public Buildings: Dear Sir-I am in receipt of your communication of recent date, in which you ask when certain appropriations, made by the last general assembly, become available, viz: paving driveway at north entrance of state house, $1,750; concrete walks on Washing- ton street, $1,500; repair of roof, $3,390. The portion of the appropriation act of 1907 governing these and other similar items, reads as follows: "Redecorating, $10,750, available April 1, 1907; re- varnishing wood work, $1,400, available April 1, 1907; 0 .0 0 paving driveway, north entrance, $1,750; repairs to steps, west entrance, $500, available April 1, 1907; con- crete walks on Washington street, $1,500; roof repairs, $3,390; electric power, $740, available July 1, 1907."