Penalty for refusal to

make.

(414) SEC. 2. Any person being a resident of this state, acting as president, secretary or other officer of any such mutual fire and wind storm insurance company, doing business in this state, who shall wilfully refuse or neglect to make assessments as provided in section one of this act shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine not exceeding one thousand dollars nor less than five hundred dollars, or by imprisonment in the county jail not less than six months nor more than one year, or both such fine and imprisonment in the discretion of the court.

An Act requiring mutual insurance companies doing business in this state to make yearly schedule, or circular itemized reports to each member thereof, residing in this state, of moneys received and disbursed, and from what source received, and for what purpose disbursed.

Yearly schedule.

Penalty for neglect.

[Act 111, P. A. 1883.]

The People of the State of Michigan enact:

(415) § 5194. SECTION 1. That it shall be the duty of the secretary of each mutual insurance company, doing business in this state, to make out and deliver by mail, or otherwise, each year, to each individual member of such company, a printed schedule, or circular itemized report, giving statement of all money, or moneys, received by such company during the year, and on what account, and from what source received, and the total amount received during the year; and also giving an itemized statement of all the money or moneys paid out, or disbursed during the year by such company, and for what purpose or purposes, also the total amount paid out.

(416) § 5195. SEC. 2. Any person, being a resident of this state, acting as secretary of any such mutual insurance companies, doing business in this state, who shall wilfully refuse, or neglect to make out and deliver the reports, as provided in section one of this act, shall be deemed guilty of a misdemeanor, and on conviction thereof, shall be subject to a fine of not more than one hundred dollars.

An Act to authorize and compel the attendance of witnesses by the insurer or insured in the adjustment and arbitration of fire losses in insurance companies organized under the laws of this state.

[Act 36, P. A. 1881.]

The People of the State of Michigan enact:

issue

(417) § 5190. SECTION 1. That any justice of the peace Justices of the of this state is hereby authorized and required to issue sub- peace may poenas, and compel the attendance of witnesses before the subpoenas. president, vice president, board of directors, or either of the directors, or the auditor or board of auditors of any mutual fire insurance company organized under the laws of this state, whenever requested so to do by said officers of such insurance companies, or any one of them, or the insured, to give evidence in any matter touching the adjustment or arbitration of losses by fire, which may come before such officer or officers; and such subpoena shall be valid to compel the attendance of a witness within the same county where such. matter is to be tried, and within thirty miles of the place of such trial. The opposite party interested in such adjustment Notice to or arbitration shall be notified, without cost to him or them, party. at least twenty-four hours in advance, of the time and place where such witnesses are to be examined, and he or they shall have the right to appear by attorney or in person, and crossexamine all witnesses produced.

McGraw v. Germania Fire Ins. Co., 54/159.

opposite

be How sub

(418) 5191. SEC. 2. Any such subpoena may served by a sheriff, constable, or any other person, and it pœna served. shall be served by delivering a copy thereof, and by paying or tendering to him the same fees for traveling and one day's attendance as are allowed by law in justice courts.

ment may

(419) § 5192. SEC. 3. Whenever it shall appear to the When attachsatisfaction of said justice of the peace, by affidavit of a issue. party interested in said adjustment or arbitration, or by other competent testimony, that any person duly subpoenaed to appear as required in said subpoena, shall have refused or neglected without just cause to attend as a witness in conformity to such subpoena, and the testimony of such witness is material, as the deponent verily believes, the said justice shall have power to issue an attachment to compel the attendance of such witness, and said witness shall be liable for the costs of such attachment [attachments] and for the ser- Costs, how vice of the same, which costs may be recovered in an action of assumpsit at the suit of the party injured by such neglect or refusal, before any court having competent jurisdiction in like cases, and shall moreover be liable to said injured party in damages.

recovered.

(420) § 5193. SEC. 4. Any one of said officers of such officers of insurance companies shall have the power, and they are here- company by authorized to administer an oath to said witnesses or ister oaths.

may admin

parties so testifying before them in the adjustment or arbitration of such losses, and said witnesses shall be liable to the same pains and penalties for perjury as are now provided by law.

Certain contracts, etc., made valid.

Liability limited.

Idem.

An Act to validate and make binding certain contracts, covenants, and agreements made with fire insurance companies organized under the laws of this state, prescribing, limiting, and restricting the liability of persons incurred therein and the members thereof for the losses and expenses of such companies.

[Act 143, P. A. 1885.]

The People of the State of Michigan enact:

(421) § 5187. SECTION 1. That all contracts, covenants, and agreements heretofore made by and between any mutual fire insurance company organized under any of the laws of this state, or its agents, officers, or representatives, and persons taking insurance therein or becoming members thereof, prescribing, limiting or restricting or undertaking to prescribe, limit, or restrict the liability of such persons or members for the losses or expenses of such companies, shall be valid and binding, and are hereby made valid and binding upon such companies, their assigns, managers, or receivers from and including the time when such contracts, covenants, or agreements were made and entered into, to the extent of and according to such limitation or restriction, and not otherwise, notwithstanding the want or failure of legal power or authority, in such company, its agents, officers, or representatives, and the said persons taking insurance therein or becoming members thereof to make and enter into such contract, covenant or agreement. And the liability of the persons insured in such companies and the members thereof, for the losses or expenses of such companies, shall not exceed the liability assumed by such persons when taking such insurance or by such member when joining such company. And that on payment in full by such person or member, of the amount assumed or agreed to be paid on taking such insurance, or on becoming a member of such company, the said persons so insured as aforesaid and the said members of such companies shall be released and absolved from any and all further liability, for such losses or expenses.

Tolford V. Church, 66 / 441; Nichol v. Murphy, 145/425; Benham v. Farmers' Mut. Fire Ins. Co., 165/ 406.

(422) § 5188. SEC. 2. That in any case where any such companies, their agents, officers, or representatives have heretofore taken or accepted a premium, note, or undertaking for insurance from any person taking insurance in any of

such companies or becoming a member thereof with a contract, covenant, or agreement either express or implied that the amount specified in such premium, note or undertaking for insurance shall be the limit of the liability of such insured person or such member, for the losses or expenses of such company, such contract, covenant, or agreement limiting the liability of persons so insured, and the members of such companies, to the amount of such premium, note or undertaking for insurance is hereby ratified, authorized, and made valid and binding and including the time when such contract, covenant, or agreement was made and entered into. And the said persons so insured and the said members of such companies on payment of the amount of such premium, note or undertaking for insurance to the proper officer of such company or to its successors, assigns, managers, or receivers shall be discharged from all further liability for the losses or expenses of such company, its successors, assigns, managers or receivers.

whom to

(423) § 5189. SEC. 3. This act shall be binding upon This act to such companies, their officers, agents, and representatives, apply. attorneys, solicitors and employes, and upon its successors, assigns, managers and receivers, and upon the members thereof and the persons insured therein.

CHAPTER VIII. CASUALTY INSURANCE.

An Act to provide for the incorporation of mutual insurance companies to insure against cyclones, wind storms, and tornadoes, and defining their powers and duties.

[Act 6, P. A. 1885.]

The People of the State of Michigan enact:

form corpo

insured.

(424) § 7353. SECTION 1. Any number of persons, not who may less than twenty, may associate together and form an incor- ration. porated company for the purpose of mutual insurance of the property of its members against loss by cyclones, wind storms and tornadoes; which property to be insured may embrace Property schoolhouses, literary and grange halls, churches, agriculture societies' buildings, dwelling houses, barns, accompanying outbuildings and their contents, stores, hotels, blacksmith shops, flour mills, feed mills, elevator buildings, factory buildings, and all other buildings and their contents, farm implements, hay, grain, wool, and other farm products, live stock, wagons, carriages, harnesses, household goods, wearing apparel, provisions, musical instruments and libraries, goods, wares, and merchandise, and any other property being upon farms as farm property, or dwellings, and such other

To file statement with

of insurance.

buildings as are specified in this section, that constitute risks in villages and cities, and their contents, as the charter and by-laws of said companies may provide, and belonging to members of said companies.

Am. 1905, Act 5.

(425) § 7354. SEC. 2. Such persons so associating shall commissioner file in the office of 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 charter proposed to be adopted by them.

As to opening books.

Territory in which risks

(426) § 7355. SEC. 3. The persons so associating, after having filed their statement, may open books to receive propo sitions and enter into agreements in the manner hereafter specified; but no company organized under this act shall do may be taken. any business or take any risks, or make any insurance in a Requirements less territory than this state. No insurance company organized as aforesaid shall commence business until bona fide agreements have been entered into for insurance with at least one hundred individuals, covering property to be insured to the amount of not less than one hundred thousand dollars.

before commencing business.

Holding of real estate.

When real estate shall be sold.

Postponement of sale.

Charter to be filed.

What to contain.

Further re

quirements as to charter.

(427) § 7356. SEC. 4. No company formed under this act shall purchase or hold any real estate except:

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

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

Fourth, Such as shall have been purchased at sales upon judgments, decrees, or mortgages in favor of such company, or held or owned by it; and all real estate obtained by virtue of any provisions of this section, except that mentioned in the first subdivision, shall be sold or disposed of within five years after the title has been perfected in 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 commissioner of insurance shall direct in said certificate, not to exceed ten years in all.

(428) § 7357. SEC. 5. In addition to the foregoing provisions, it shall be the duty of the corporators of any company organized under the provisions of this act to declare in the charter, which is hereby required to be filed, the mode and manner in which the corporate powers, given under and by virtue of this act, are to be exercised, the mode and manner of electing trustees or directors, who shall be citizens of this state, the filling of vacancies, the period for the com