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effect of this act, incurred any penalty or forfeiture under the laws of this state, shall be authorized to do business in this state until it shall have fully paid all such penalties and forfeitures.

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An Act to empower the licensing of persons to procure policies of

fire insurance in this state in companies of other states, or in those of foreign governments not authorized to do business in this state.

[Act 199, P. A. 1895.)

The People of the State of Michigan enact:

cure license.

Fee for license. (247) $ 5151. SECTION 1. That the commissioner of

insurance, upon the annual payment of a fee of twenty-five dollars for the use of the state, may issue licenses to the citizens of the state of Michigan, subject to revocation at any time, permitting the person named therein to procure policies of fire insurance on property in this state in foreign insurance companies not authorized to transact business in this state, but which are duly authorized to do business in

other states having insurance commissioners. How to pro

(248) § 5152. SEC. 2. Before the person named in such license shall procure any insurance in such companies on any property in this state he shall in every case execute and file with the commissioner of insurance an affidavit that he is un. able to procure, in companies admitted to do business in the state, the amount of insurance necessary to protect said property, and shall only procure insurance under such license after he has procured insurance in companies admitted to do business in this state to the full amount which said companies are willing to write on said property: Provided, That such licensed person shall not offer any portion of such insurance to any company which is not possessed of cash assets amounting to at least one hundred thousand dollars, which shall be determined by the commissioner of insurance by an inspection of the books and assets of such company, or one which has, within the preceding twelve months been in an impaired con

dition. Report to

(249) $ 5153. SEC. 3. Each person so licensed shall commissioner. keep a separate account of the business done under the license,

a certified copy of which account he shall forthwith file with the commissioner of insurance, showing the exact amount of such insurance placed for any person, firm or corporation, the gross premium charged thereon, the companies in which the same is placed, the date of the policies and the term thereof,

be given,

and he shall also file a report in the same detail of all such policies canceled and the gross return premiums thereon.

(250) § 5154. SEC. 4. Before receiving such license he Penal bond to shall execute and deliver to the auditor general a bond in the penal sum of two thousand dollars with such sureties as the said auditor general shall approve, with a condition that the licensee will faithfully comply with all the requirements of this law and will file with the commissioner of insurance, in January of each year, a sworn statement of the gross premiums charged for insurance procured or placed, and the gross returned premiums on such insurance canceled under such license during the year ending on the thirty-first day of December next preceding, and at the time of filing such statement will pay into the state treasury a sum equal to four per cent of such gross premiums less such returned premiums reported. (251) § 5155.

SEC. 5. The commissioner of insurance Authority shall have authority at all times to investigate any alleged license. violations of this act and he shall report all such investigations to the attorney general of this state, who in case of said violation shall take proceedings to collect all fees or taxes from such licensee, and said commissioner of insurance shall thereupon revoke the license of said licensee.

(252) § 5156. SEC. 6. Any such company with which Commissioner such insurance shall be placed shall appoint the commissioner appointed of insurance of this state as its attorney in fact in this state, attorney. upon whom process can be served. All acts and parts of acts inconsistent with the provisions of this act are hereby re. pealed.

to revoke

An Act making it unlawful for any fire insurance company doing

business in the state of Michigan, to limit or restrict its liability by providing in any policy of insurance issued by it that such liability shall be fixed, determined or proportioned by the whole amount of insurance upon the property insured, and to provide a penalty for the violation thereof.

[Act 153, P. A. 1895.]

The People of the State of Michigan enact:


(253) .§ 5183. SECTION 1. That it shall be unlawful Unlawful hereafter for any fire insurance company doing business in the state of Michigan to provide by any insurance policy issued by it, or by any clause therein, or by any separate agreement, contract or otherwise, that the liability of said insurance company to the insured shall be limited or restricted by reason of the failure of the said insured to insure the property covered by said policy for any certain amount or proportion of the actual cash value of such property.

Policy void.

May revoke authority to do business.

(254) $ 5184. SEC. 2.

SEC. 2. Any provision of any policy, or any contract or agreement contrary to the provisions of this act shall be absolutely void, and any insurance company issuing any policy of insurance containing any such provision shall be liable to the insured under such policy in the same manner and to the same extent as if such provision were not therein contained.

(255) $ 5185. Sec. 3. Any company or companies violating the provisions of the first section of this act, upon notice and satisfactory proof thereof being made to the commissioner of insurance, shall have its or their authority to transact business in the state of Michigan revoked for a period of not less than ninety days, and any insurance company whose license to do business in Michigan may be so revoked by the commissioner of insurance, shall not again be permitted to do business in Michigan until all penalties due hereunder shall be paid, together with any expenses that may be due under the provisions of this act to the commissioner of insurance.

(256) § 5186. Sec. 4. Any individual, firm, corporation or association, company or companies violating the provisions of section one of this act shall be deemed guilty of a misdemeanor and shall forfeit to the state a sum not less than fifty dollars nor more than one hundred dollars, to be collected by the commissioner of insurance in an action of debt.


An Act to prevent the forfeiture of fire insurance policies by the

violation of any condition of the policy when such violation has been without prejudice to the insurer.

[Act 167, P. A. 1897.]

The People of the State of Michigan enact:

When policy (257) $ 5180. SECTION 1. That no policy of fire insurnot to be void.

ance shall hereafter be declared void by the insurer for the breach of any condition of the policy if the insurer has not been injured by such breach, or where a loss has not occurred during such breach, or by reason of such breach of condition.

This act covers all policies issued in this state after the act went ato effect, irrespective of whether they are Michigan standard policies or not.McGannon v. Fire Ins. Co., 127 / 636. It is not unconstitutional.-Id. Fire insurance companies being creatures of statute, the legislature may prescribe the forms of their contracts and the limitations in relation to the forfeiture clauses therein.--Id. This act does not affect the rule which renders void a policy, under which the valuation is made a warranty, if a substantial overvaluation is given, irrespective of the motive of the insured.-Shelden v. Fire Insurance Co., 124 / 303. Does not apply to the breach of a condition against procuring additional insurance, when the loss occurred while the additional insurance was in force.-A. M. Todd Co. v. Fire Insurance Co., 137 / 188. Iron-safe clause. -See King v. Insurance Co., 140 / 266.

(258) § 5181. SEC. 2. If a building that is insured, Unoccupied whether intended for occupancy by owner or tenant be or be building. come vacant or unoccupied and so remain for ten days, without the consent of the company endorsed on the policy, such vacancy shall not avoid said policy of insurance.

(259) § 5182. SEC. 3. There shall hereafter be inserted Clause added in, or by stamp or rider affixed upon, the standard form of in- policy to surance policies used in this state, after the clause which con

contain what. tains the conditions for a breach of which without the consent of the company endorsed thereon the policy is declared void, a proviso in substance as follows: Provided, A loss shall occur on the property insured while such breach of condition continues or such breach of condition is the primary or contributory cause of the loss.

This section is not unconstitutional as an unauthorized limitation upon the scope of the act as expressed in the title.--Boyer v. Grand Rapids Fire Ins. Co.. 124 / 455.

The keeping of gasoline on the premises in breach of the conditions in a policy of insurance will not work a forfeiture unless it causes or contributes to a loss.—Brunswick-Balke-Collender Co. v. Northern Assurance Co., 150 / 311.


An Act to provide for the incorporation of mutual fire insurance

companies, and defining their powers and duties; and to repeal chapter ninety-seven of the compiled laws of eighteen hundred and seventy-one and also act number ninety-four of the session laws, eighteen hundred and seventy-one, approved April twelfth, eighteen hundred and seventy-one.

[Act 82, S. L. 1873.]

The People of the State of Michigan enact:

(260) § 7266. SECTION 1. Any number of persons not Property less than seven, may associate together and form an incorpo. may insure. rated company for the purpose of mutual insurance of the property of its members against loss by fire or damage by lightning, which property to be insured may embrace schoolhouses, town halls, literary and grange halls, society or other fraternal halls, churches, agricultural societies, buildings, dwelling houses, barns accompanying outbuildings, and their contents, farm implements, hay, grain, wool and other products, live stock, wagons, carriages, harness, household goods, wearing apparel, provisions, musical instruments and libraries, being upon farms as farm property, or dwellings, accompanying outbuildings, and such other buildings as are specified in this section, that constitute detached risks in vil lages and cities, and their contents, as the charters and by

laws of said companies may provide, and belonging to members of said companies.

Am. 1903, Act 220.

The object of this act is clearly expressed in its title.--Tolford v. Church, 66 / 440. Companies organized under this act can insure "live stock, wagons, carriages, harness,” etc., "being upon farms as farm property;" but, where the by-laws prohibit the insurance of village property within 100 feet of other buildings, a company is not liable for a horse, harness, cushion and blanket, insured as "personal farm property in buildings and on farm," but destroyed in the barn of a village hotel within 100 feet of other buildings. - Wildey v. Farmers' Mut. Ins. Co., 52 / 446. The term "stack" has a well-defined meaning and cannot be said to include grain in a mow in a barn.—Benton v. Farmers' Mut. Fire Ins. Co., 102 / 281. Loss of horse by lightning while away from home barn; liability of company for loss.--Hapeman v. Mut. Fire Ins. Co., 126 / 191. Where a company describes the property in its policy as in a village, it is estopped from denying that the place described is a village, because it is neither platted nor incorporated.—Russell V. Detroit Mut. Fire Ins. Co., 80 / 407. Where, by the terms of the insurance contract, the statements in the application are made warranties, a misrepresentation as to the amount of incumbrance on the insured property will avoid the policy.--Niles v. Farmers' Mut. Fire Ins. Co., 119 | 252. The charter and by-laws of a mutual insurance company constitute a part of the contract of insurance.—Am. Ins. Co. v. Stoy, 41 / 385. A fire insurance company is not estopped to defend an action on a policy, on the ground of a willful burning of the property by the plaintiff, by the fact of a criminal complaint made against the plaintiff by one of its officers and a discharge of the plaintiff on examination, or by the fact that, with knowledge of the circumstances, it collected an assessment from the plaintiff for the loss.—Barnett v. Mut. Fire Ins. Co., 115 / 247. Authority of board of auditors of mutual fire insurance company.-Denton v. Mut. Fire Ins. Co., 120 / 690. One who becomes a member of a foreign mutual insurance corporation subjects himself to such laws of the government of its situs as affect its powers and obligations.-Warner v. Delbridge & Cameron Co., 110 / 590. A policy of insurance issued upon farm products, farm implements, etc., does not cover the fixtures and utensils of a slaughter-house, conducted by insured, and used in a wholesale meat business in which he is engaged.-Geraghty v. Insurance Co., 145 / 635. Where at the time of becoming a member of a mutual fire insurance company and receiving a policy, plaintiff signed a note for premium which provided that if it was not paid at a certain time the policy should become and remain void until the note should be paid, plaintiff is estopped to contend that the taking of the note was ultra vires, and that his failure to pay did not avoid his policy.-Hale v. Farmers' Mutual Ins. Co., 148 / 453.

Filing of state

(261) § 7267. Sec. 2. Such persons so associating shall ment, and publication of file in the office of the commissioner of insurance a statement, notice of intention.

signed by all the corporators, stating their purpose of forming a company for the transaction of the business of insurance, as expressed in the first section of this act; which statement shall also comprise a copy of the charter proposed to be adopted by them, and shall publish a notice of such their intention, once in each week for at least five successive weeks, in a public newspaper in the county in which such company is proposed to be located.

The failure to file certain copies of articles of association, as required by law, by a corporation in being, cannot be set up by private persons to avoid corporate contracts. Such failures are, at most, but violations of duty to the state, which the state can punish by forfeiture or penalties.—Jhons v. People, 25 / 502.

Corporation may open books to receive propositions, etc.

Business limited.

(262) $ 7268. SEC. 3. The persons so associating, after having filed the statement and published the notice as aforesaid, may open books to receive propositions and enter into agreements in manner hereinafter specified, but no company organized under this act shall do any business or take any risks or make any insurance in more than three counties in this state, which counties shall be contiguous, and shall be named and set forth in their charter. No insurance company

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