Fourth, To make insurance upon vessels, freights, goods, wares, merchandise, specie, bullion, jewels, profits, commissions, bank notes, bills of exchange and other evidences of debt, bottomry and respondentia interests and every insurance appertaining to or connected with ocean marine risks: Pro- Proviso, cash capital. rided, however, That any corporation including in its charter a provision to assume any of the risks specified in this subdivision must have an unimpaired capital paid in in cash, of not less than four hundred thousand dollars. Approved May 7, 1915.

[No. 147.]

AN ACT relative to the manner in which fire insurance companies operating in this State shall conduct their business, and providing a penalty for its violation.

The People of the State of Michigan enact:

to appear

SECTION 1. Every fire insurance company shall conduct its How business business in this State, in the name under which it is incor- conducted. porated, and the policies issued by it shall be headed or entitled only by such name. There shall not appear on the What not face of the policy, or on its filing back, any thing that would on policy. indicate that it is the obligation of any other than the company responsible for the payment of losses under the policy, though it will be permissible to stamp or print on the bottom of the filing back the name or names of the department or general agency issuing the same.

vertisements,

SEC. 2. No insurance company or department or general False adagency of an insurance company, doing business in this State, etc. or its officers or agents, shall issue any false or misleading advertisement through newspapers or other periodicals, or any false or misleading representations by signs, cards, letterheads, etc., tending to conceal or misrepresent the true iden tity of the issuer or insurance company which is carrying the liability under any policy issued in this State.

sentation.

SEC. 3. Nor shall any insurance company or department Misrepreor general agency of an insurance company, doing business in this State, issue any advertisement or representation of any character, giving the appearance of a separate or independent insuring organization on the part of any department or general agency, and the type or lettering used in any advertise- Type of ment or representation shall set forth the name of the com- advertisepany or organization assuming the risk more conspicuously than that of any department or general agency: Provided, Proviso. Nothing herein contained shall be construed as limiting the right of any representative of a fire insurance company to advertise his own individual business.

ments.

Penalty.

SEC. 4. Any violation of this act shall be punished by a fine of not exceeding five hundred dollars. Approved May 7, 1915.

Who may associate.

What

property to be insured.

Members.

Form of policy.

Adoption of articles and by laws.

Statement of purpose.

What to comprise.

Notice.

Opening books.

Proviso.

commencing business.

[No. 148.]

AN ACT to authorize the incorporation of Michigan mercantile mutual fire insurance companies.

The People of the State of Michigan enact:

SECTION 1. Any number of owners or operators of banks or mercantile establishments, not less than ten, being residents of the State, may associate together and form an incorporated company for the purpose of mutual insurance of property against loss or damage by fire or lightning, which property, primarily to be insured, shall consist of merchandise, goods, chattels, wares, store and office fixtures, or secondarily may include store buildings, warehouses, stores, outbuildings and their contents, used and held in the ordinary conduct of banking and mercantile business of the country, and all holders of policies of such incorporated companies, whether residing within or without this State, are hereby members of the company issuing such policy, which policy need not be in the form of words prescribed under the act to establish a uniform policy of insurance but no company organized under the provisions of this act shall be entitled to the benefit of these amendments until articles of association and by-laws in accordance therewith have been adopted by a regular or special meeting of such company, due notice of which shall have been mailed to the members at least fifteen days before the date of such meeting.

SEC. 2. Such persons so associating shall file in the office of the Commissioner of Insurance a statement, 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 articles of association 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 published in the county in which the office of such company is proposed to be located.

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 and in accordance with the ar ticles of association of said company: Provided, however, That insurance companies organized as aforesaid shall not

commence business until bona fide agreements have been entered into with each for insurance with at least one hundred individuals, covering property to be insured to the amount of not less than one hundred thousand dollars.

SEC. 4. The companies formed under this act shall not Holding real purchase or hold any real estate except:

First, Such as shall be necessary for their immediate accommodation in transacting business; or

Second, Such as shall have been conveyed or mortgaged to the companies in good faith by way of security for debts; or Third, Such as shall have been conveyed to the companies in satisfaction for debts; or

Fourth, Such as shall have been purchased at sales upon judgments, decrees, or mortgages in favor of said companies, or held or owned by them. And all real estate obtained by virtue of any provisions of this section, except that mentioned in the first sub-division, shall be sold or disposed of within five years after the title has been perfected in any such company, unless the company shall procure a certificate from the Commissioner of Insurance that the interest of said company will materially suffer by forced sale, in which event the sale may be postponed for such period as the said Commissioner of Insurance shall direct in said certificate, not exceeding ten years in all.

estate.

SEC. 5. It shall be the duty of the corporators of any Articles of company organized under the provisions of this act to de. association. clare in its articles of association, which is hereby required to

be filed with and approved by the Commissioner of Insurance, Filing and the mode and manner in which the corporate powers given approval. under and by virtue of this act are to be exercised; the mode and manner of choosing officers, trustees, or directors, who shall each and all of them be residents of this State; the filling of vacancies; the period for the commencement and termination of its fiscal year; and shall prescribe the liabili ties of the members to be assessed towards defraying the losses and expenses of such companies, and the mode and manner of collecting such assessments, and the members shall be liable to assessment for all liabilities of the company to the extent declared in the articles of association.

general.

SEC. 6. The articles of association thus to be filed by any Examination such corporation shall be examined by the Attorney General, by attorney and if found to be in accordance with the requirements of this act he shall certify the same to the Commissioner of Certification. Insurance, and said commissioner in person, or by his deputy, or by the appointment of some other disinterested person for that purpose, shall, if he approve the articles of association, examine and certify under oath that any such company has received and is in actual possession of the premiums or engagements of insurance, as the case may be, to the full extent required by this act. Copies of such certificate shall be filed Where in the office of the Commissioner of Insurance, whose duty it filed. shall then be to furnish the corporation with a certified copy

certificate

of the charter and of the certificates aforesaid, which, upon being filed by them in the county clerk's office of the county in which the office of any such company is located, shall be their authority to commence business and to issue policies of insurance, and the same may be used in evidence for or Suits against against said corporation. And suits may be brought against any such company in any county in this State in which it shall do business or take risks in which the plaintiff resides, or in the county where the principal office of the company is located.

company.

By-laws.

When

operative.

Body corporate.

Amendment of articles.

Notice.

Submission

to attorney general.

Certification. Approval and filing.

Suits by and against members.

Premium notes.

SEC. 7. The corporators, trustees, or directors, as the case may be, of any company organized under this act, shall have power to make such by-laws, not inconsistent with the constitution or laws of this State, as may be deemed necessary for the government of its officers and members, and the conduct of its affairs, but such by-laws shall not be operative until filed with and approved by the Commissioner of Insurance, who shall furnish the company with a certified copy thereof.

SEC. 8. Any company formed under this act shall be deemed a body corporate and politic in fact and in name, and shall be subject to all the provisions of the statute in relation to corporations, so far as they are applicable.

SEC. 9. Any such company formed under this act shall have power to amend its articles of association at the regular annual meeting held according to the provisions of said articles of association and upon giving notice of such intention by printed circular, or postal card, or letter, to be addressed and sent by mail at least three weeks previous to such meeting to all the members, officers, trustees, and directors of such company. Said amendments so had shall be submitted to the Attorney General and his certificate of compliance with the law obtained and a copy of said amendments with said certificate shall be filed in the office of the Commissioner of Insurance, and if he approve of such amendments shall make a certified copy thereof and deliver the same to the company, which upon being filed with the county clerk of the county in which the office of such company is located, shall become operative.

SEC. 10. Suits at law may be maintained by corporations. formed under this act against any of their members, for any cause relating to the business of such corporations; also suit at law may be prosecuted and maintained by any member against such corporation for claims which may have accrued, if payments are withheld more than sixty days after such claims shall have become due. The articles of association and by-laws of any such company organized under the provisions of this act may provide for the receiving of applications or agreements from its members for insurance, with or without taking from the insured any premium note or notes; and it shall be lawful for such mutual insurance companies to make assessments upon such agreements, or policies issued

thereon, or upon the premium note or notes, as the case may Assessments. be, pro rata, according to the amount of such agreement or policies or premium note or notes for the payment of the losses and expenses incurred by such companies, and all such premium notes, or agreements, or assessments shall be a lien Lien upon upon the property insured to the amount of such note, notes, insured. agreements, assessments, costs, and interest due thereon.

property

of condition.

SEC. 11. It shall be the duty of the president, or vice- Statement president, and secretary of any such company organized under this act, annually on the first day of January, or within one month thereafter, to prepare under their own oath, and deposit in the office of the Commissioner of Insurance, a statement of the condition of such company on the thirty-first day of December, then next preceding, exhibiting the following Facts facts and items, namely:

First, The number of members belonging to the company; the number of members added during the year; the number of members who have withdrawn, or whose policies have been cancelled during the year;

Second. The amount of property at risk December thirtyfirst of the previous year; the amount of risks added during the year; the amount of risks cancelled, withdrawn, or terminated during the year, and the net amount at risk by the company;

Third, The amount of premium or deposit notes, or agreements in force; the amount of cash premiums or assessments actually on hand; the amount of outstanding assessments not cancelled; the nature and amount of all other resources; the total amount of resources;

Fourth, The claims for losses due and payable; the claims for losses not matured; the claims for losses resisted; the nature and amount of all other claims, due or accrued, and the total amount of liabilities;

Fifth, The amount of premiums on deposit notes taken dur ing the year; the amount of cash premiums received during the year; the amount collected on assessments which were levied during the year; the amount collected during the year on assessments which were levied in prior years; the amount received from membership or policy fees or from any other sources constituting an expense to the insured; the amount received from percentage on increased or decreased insurance; the income from all other sources, and the total income;

Sixth, The amount paid for losses during the year, stating the amount of same which was for losses of previous years; the amount of salary and fees paid to officers and directors; the amount of all other expenditures during the year, and the total expenditures during the year;

Seventh, The Commissioner of Insurance may from time to time make any change in the form of annual reports to be made by such companies, to elicit further information regarding the condition of the company.

and items exhibited.

SEC. 12. A copy of every such sworn statement and report Publication

of report.