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Abstract

Plaintiff, a licensed insurance broker in New Jersey, sued for commissions due for services performed as the local agent of two licensed foreign fire insurance companies. The claim was for twenty-five per cent of the premiums. The defense relied on a New Jersey statute which made unlawful the payment of commissions in excess of a reasonable amount or at a rate higher than that paid to any one of the insurer's local agents. The defendant set up that it had local agents receiving commissions of but twenty per cent. Plaintiff attacked the constitutionality of the statute. Held, four justices dissenting, the statute was a reasonable regulation within the scope of the police power. O'Gorman & Young v. Hartford Fire Ins. Co., 51 Sup. Ct. 130.

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