Pierce Butler

“ The element of insurance may not properly be regarded as more than an incident thereof; it certainly is not sufficient to make respondent an 'insurance company' within the meaning of that phrase as it is commonly used and understood. ”

“ These guaranties furnished purchasers additional security and were calculated to make the loans desirable as investments and readily saleable at a profit.
The lending fees, extension fees, and accrued interest appertain to the business of lending money rather than to insurance and may not reasonably be attributed to the subordinate element of guaranty in respondent's mortgage loan business. The so-called premiums amount to about one-third of total income, but they cover agency and other services which generally are not performed under contracts of insurance. ”

“ And the stipulation in respect of policies issued on loans not made by respondent is too vague to be given weight.
'Premiums' are characteristic of the business of insurance, and the creation of 'investment income' is generally, if not necessarily, essential to it. Section 246 does not cover any other class of income. It is not shown that respondent had any investment income within that section. Evidently its guaranties produced less than one-third of its income.
Respondent's business is one which may be and is in fact carried on by corporations organized under the New York banking laws. ”