INSURANCE - WHEN IS A PERSON ENGAGING IN THE INSURANCE BUSINESS

Defendant was secretary of a retail grocers association which maintained a so-called "Plate Glass Fund," for members only, administered by the defendant without compensation. The members paid into the fund a certain sum annually, depending on the amount of glass they wanted protected, and in the event of breakage it was replaced. Surplus funds were returned to the members. The certificates of membership expressly stipulated that the fund was not an insurance or indemnity company.

Defendant was prosecuted and convicted for conducting an unauthorized insurance business. Held, the defendant was engaging in the insurance business, and conviction was sustained. People v. Roschli, 275 N. Y. 26, 9 N. E. (2d) 763 (1937).