McConnell

Appeals have been taken by the Insurance Commissioner from two separate orders of the superior court awarding attorneys’ fees, auditors’ fees and advances against costs pending a hearing on the merits of a conservatorship proceeding initiated by the commissioner pursuant to section 1011 of the Insurance Code. By stipulation of counsel and permission of this court, both appeals have been consolidated for briefing and decision.

All-Coverage Insurance Exchange Automobile and Fire is an organization composed of persons who exchange reciprocal insurance contracts with each other. All-Coverage Underwriters, Inc., has been the attorney-in-fact for the Exchange whereby it solicits and processes applications for the exchange of insurance contracts for the subscribers of the Exchange, and receives and collects for and in the name of the Exchange all premiums for insurance and membership fees.

On November 21, 1962, the commissioner, pursuant to section 1011, filed with the court below his verified “Application for Order Appointing Conservator.” The application alleged that an examination of the affairs of the respondents had been made, and that sundry conditions had been found to exist as…