Rights of beneficiary. Time when suit may be brought. Terms gov- Cancellation of. cupation to one classified by the insurer as less hazardous than that stated in the policy, the insurer, upon written request of the insured, and surrender of the policy, will cancel the same and will return to the insured the unearned premium. (13) A standard provision relative to the rights of the beneficiary under the policy which shall be in the following form and which may be omitted from any policy not designating a beneficiary: (A) 13. Consent of the beneficiary shall not be requisite to surrender or assignment of this policy, or to change of beneficiary, or to any other changes in the policy. (14) A standard provision limiting the time within which suit may be brought upon the policy as follows: (A) 14. No action at law or in equity shall be brought to recover on this policy prior to the expiration of sixty days after proof of loss has been filed in accordance with the requirements of this policy, nor shall such action be brought at all unless brought within two years from the expiration of the time within which proof of loss is required by the policy. (15) A standard provision relative to time limitations of the policy as follows: (A) 15. If any time limitation of this policy with respect to giving notice of claim or furnishing proof of loss is less than that permitted by the law of the state in which the insured resides at the time this policy is issued, such limitation is hereby extended to agree with the minimum period permitted by such law. (528) SEC. 4. No such policy shall be so issued or delivered which contains any provision (1) relative to cancellation at the instance of the insurer; or, (2) limiting the amount of indemnity to a sum less than the amount stated in the policy and for which the premium has been paid; or, (3) providing for the deduction of any premium from the amount paid in settlement of claim; or, (4) relative to other insurance by the same insurer; or, (5) relative to the age limits of the policy; unless such provisions which are hereby designated as optional standard provisions shall be in the words and in the order in which they are hereinafter set forth, but the insurer may at its option omit from the policy any such optional standard provision. Such optional standard provisions if inserted in the policy shall immediately succeed the standard provisions named in section three of this act. (1) An optional standard provision relative to cancellation of the policy at the instance of the insurer as follows: 16. The insurer may cancel this policy at any time by written notice delivered to the insured or mailed to his last address as shown by the records of the insurer, together with cash or the insurer's check for the unearned portion of the premiums actually paid by the insured, and such cancella tion shall be without prejudice to any claim originating prior thereto. (2) An optional standard provision relative to reduction of the amount of indemnity to a sum less than that stated in the policy as follows: 17. If the insured shall carry with another company, corporation, association or society other insurance covering the same loss without giving written notice to the insurer, then in that case the insurer shall be liable only for such portion of the indemnity promised as the said indemnity bears to the total amount of like indemnity in all policies covering such loss, and for the return of such part of the premium paid as shall exceed the pro rata for the indemnity thus determined: (3) An optional standard provision relative to deduction Deduction of of premium upon settlement of claim as follows: premium at time of settle 18. Upon the payment of claim hereunder any premium ment. then due and unpaid or covered by any note or written order may be deducted therefrom. forms, condi (4) An optional standard provision relative to other in- Like policies, surance by the same insurer which shall be in such one of tions, etc. the following forms as may be appropriate to the indemnities provided, and in the blank spaces of which the insurer shall insert such upward limits of indemnity as are specified by the insurer's classification of risks, filed as required by this act. (A) 19. If a like policy or policies, previously issued by the insurer to the insured be in force concurrently herewith, making the aggregate indemnity in excess of ..... dollars, the excess insurance shall be void and all premiums paid for such excess shall be returned to the insured. (B) 19. If a like policy or policies, previously issued by the insurer to the insured be in force concurrently herewith, making the aggregate indemnity for loss of time on account of disability in excess of ... ... dollars weekly, the excess insurance shall be void and all premiums paid for such excess shall be returned to the insured. (C) 19. If a like policy or policies, previously issued by the insurer to the insured be in force concurrently herewith, making the aggregate indemnity for loss other than that of time on account of disability in excess of dollars, or the aggregate indemnity for loss of time on account of dis- (5) An optional standard provision relative to the age limits of the policy which shall be in the following form and in the blank spaces of which the insurer shall insert such number of years as it may elect. 20. The insurance under this policy shall not cover any person under the age of .... years nor over the age of ....years. Any premium paid to the insurer for any Conditions governing issued or delivered. False statement. Insurer in defense of claim. Alteration without consent of applicant. Policy issued in violation of this act. When not organized in state where issued. period not covered by this policy will be returned upon request. (529) SEC. 5. No such policy shall be so issued or delivered if it contains any provision contradictory, in whole or in part, of any of the provisions herein before in this act designated, as "Standard provisions" or as "Optional standard provisions;" nor shall any endorsements or attached papers vary, alter, extend, be used as a substitute for, or in any way conflict with any of the said "Standard provisions" or the said "Optional standard provisions;" nor shall such policy be so issued or delivered if it contains any provision purporting to make any portion of the charter, constitution or by-laws of the insurer a part of the policy, unless such portion of the charter, constitution or by-laws shall be set forth in full in the policy, but this prohibition shall not be deemed to apply to any statement of rates or classification of risks filed with the commissioner of insurance in accordance with the provisions of this act. (530) SEC. 6. The falsity of any statement in the application for any policy covered by this act shall not bar the right to recovery thereunder unless such false statement was made with actual intent to deceive or unless it materially affected either the acceptance of the risk or the hazard assumed by the insurer. (531) SEC. 7. The acknowledgment by any insurer of the receipt of notice given under any policy covered by this act, or the furnishing of forms for filing proofs of loss, or the acceptance of such proofs, or the investigation of any claim thereunder shall not operate as a waiver of any of the rights of the insurer in defense of any claim arising under such policy. (532) SEC. 8. No alteration of any written application for insurance by erasure, insertion or otherwise, shall be made by any person other than the applicant without his written consent, and the making of any such alteration without the consent of the applicant shall be a misdemeanor. If such alteration shall be made by any officer of the insurer, or by any employe of the insurer with the insurer's knowledge or consent, then such act shall be deemed to have been performed by the insurer thereafter issuing the policy upon such altered application. (533) SEC. 9. A policy issued in violation of this act shall be held valid but shall be construed as provided in this act and when any provision in such policy is in conflict with any provision of this act the rights, duties and obligations of the insurer, the policy holder and the beneficiary shall be governed by the provisions of this act. (534) SEC. 10. The policies of insurance against accidental bodily injury or sickness issued by an insurer not organized under the laws of this state may contain, when is sued in this state, any provision which the law of the state, territory or district of the United States under which the insurer is organized, prescribes for insertion in such policies, and the policies for insurance against accidental bodily injury or sickness issued by an insurer organized under the laws of this state may contain, when issued or delivered in any other state, territory, district or country, any provision required by the laws of the state, territory, district or country in which the same are issued, anything in this act to the contrary notwithstanding. tion prohi not affected. (535) SEC. 11. Discrimination between individuals of the Discriminasame class in the amount of premiums or rates charged for bited. any policy of insurance covered by this act, or in the benefits payable thereon, or in any of the terms or conditions of such policy, or in any other manner whatsoever is prohibited. (536) SEC. 12. (1) Nothing in this act, however, shall Policies, etc., apply to or affect any policy of liability or workmen's compensation insurance or any general or blanket policy of insurance issued to any municipal corporation or department thereof, or to any corporation, co-partnership, association or individual employer, police or fire department, underwriters' corps, salvage bureau, or like associations or organizations, where the officers, members or employes or classes or departments thereof are insured for their individual benefit against specified accidental bodily injuries or sickness while exposed to the hazards of the occupation or otherwise in consideration of a premium intended to cover the risks of all the persons insured under such policy. contracts. (2) Nothing in this act shall apply to or in any way Supplemental affect contracts supplemental to contracts of life or endowment insurance where such supplemental contracts contain no provisions, except such as operate to safeguard such insurance against lapse or to provide a special surrender value therefor in the event that the insured shall be totally and permanently disabled by reason of accidental bodily injury or by sickness: Provided, That no such supplemental con- Proviso, tract shall be issued or delivered to any person in this state, commissioner unless and until a copy of the form thereof has been sub- of insurance. mitted to and approved by the commissioner of insurance, under such reasonable rules and regulations as he shall make concerning the provisions in such contracts and their submission to and approval by him. (3) Nothing in this act shall apply to or in any way affect fraternal benefit societies. (4) The provisions of this act contained in clause five of section two and clauses two, three, eight and twelve of section three may be omitted from railroad ticket policies sold only at railroad stations, or at railroad ticket offices by railroad employes. approved by (537) SEC. 13. Any company, corporation, association, Violation, society or other insurer or any officer or agent thereof, which penalty for. or who issues or delivers to any person in this state any Acts repealed. policy in wilful violation of the provisions of this act shall be punished by a fine of not more than one hundred dollars for each offense, and the commissioner of insurance may revoke the license of any company, corporation, association, society or other insurer of another state or country, or of the agent thereof, which or who wilfully violates any provision of this act. (538) SEC. 14. Act number sixty-eight of the public acts of nineteen hundred eleven, entitled "An act establishing standard provisions and conditions to be contained in policies insuring against accidental bodily injury or disease, issued by companies authorized to do business within this state," and all acts and parts of acts inconsistent with this act are hereby repealed. (539) SEC. 15. This act shall take effect on the first day of January, nineteen hundred fourteen. Certain soliciting of unlawful. CHAPTER XI. MISCELLANEOUS REGULATIONS. An Act to regulate the organization of insurance corporations and the manner of holding, selling and disposing of stock therein. [Act 199, P. A. 1911.] The People of the State of Michigan enact: (540) SECTION 1. It shall be unlawful for any corporasubscriptions tion foreign or domestic to take, receive or solicit subscriptions in this state for the capital stock of any insurance corporation or to take any part, directly or indirectly, in the formation of any insurance corporation for the purpose of controlling in any way the management thereof and every contract, order and subscription for stock made, directly or indirectly, with such corporation, or any voting trust or other agreement hereafter made, the purpose of which is directly or indirectly to control such corporation, is hereby declared to be void. Soliciting before articles filed. See section 639. (541) SEC. 2. It shall be unlawful for any person to receive, solicit or enter into any agreement for the sale of stock in any insurance corporation proposed to be organized under the laws of this state before the articles of association of said corporation shall have been duly executed and filed with the proper officers and the books of such insurance corporation, opened for the subscription of stock in the manner required by the statute under which such insurance corporation is organized. |