CONTENTS. Sections. Act establishing bureau.-Salary and expenses of commissioner.-Additional clerks. United States statutes.-Supreme court reports... 33-34 Organization, powers, etc.--Table of mortality.-Standard provisions of policies.— Prohibiting provisions in policies which prohibit beneficiary from enforcing pay- ment.-Permitting companies to include in contracts, provisions against lapse. -Status of persons soliciting life insurance.-Prohibiting misrepresentation, twisting in soliciting.-Disbursements.-Diversion of funds for political pur- poses. Salaries of officers and agents.-Extension of corporate life..... CHAPTER IV.—CO-OPERATIVE AND MUTUAL LIFE INSURANCE. Organization, powers, duties, etc.-Co-operative and mutual protective associations Incorporation, regulation, etc..... 89-175 176-208 CHAPTER VI.-FIRE, MARINE AND AUTOMOBILE INSURANCE COMPANIES. Organization, powers, etc.-Re-organization.--Authorized to insure against light- ning, wind and water.-Incorporation of automobile insurance companies.-Allow- ing foreign companies to transact motor car insurance.-Reporting amounts_at risk in congested value districts.-Business of mutual marine companies.-Re- insurance reserve.-Admission of foreign companies.-Regulation of business of companies not organized in this state.-Regulation of re-insurance contracts.- Prevention of unauthorized fire or inland marine policies.-Licensing of persons to procure policies in companies not authorized.-Prohibition of limitation of liability.-Prevention of certain forfeitures of policies.-Licensing of fire ad- justers.-Punishment for falsely representing public official or fire adjuster, etc.-Prohibiting collection of fees or charges in addition to premium charges. 209-299 Incorporation, powers and duties.-Mutual fire insurance companies, limited.- Cyclone, windstorm and tornado insurance companies.-Mutual insurance against 300-423 424-490 Mutual integrity companies.-Bonds and other obligations with surety or sureties. 491-516 Standard fire insurance policy.-Co-insurance rider clauses.-Standard provisions and conditions in policies insuring against accident or disease.. Regulating organization of insurance corporations and manner of holding, etc., of stock.-Payment of certain taxes, fines, penalties, license and other fees by insurance corporations.-Filing of annual statements and issuance of certifi- cates of authority.-Certificates of authority of agents.-Furnishing copies of applications for insurance.- -Insurance for benefit of married women.-Enabling minors to contract for life, health or accident insurance.-Security, etc., de- posits by fire, life and casualty companies.-Exchange of inter-insurance in- demnity contracts.- Insurance of county buildings.-Computation of taxable Suits against companies in counties where plaintiff resides and policies are issued.- Suits against co-operative and mutual benefit associations of other states.- Service of process upon companies not organized in this state.-Proceedings against and the liquidation of delinquent corporations.-Levy of attach- ment or execution upon stock.-Jurisdiction of justices in garnishment...... Fraudulent advertisements, etc., of insurance companies.-Prohibiting rebating on premiums.-Prohibiting misrepresentation, twisting and embezzlement.-Pro- hibiting unauthorized contracts of fire insurance.-Prohibiting foreign com- panies from placing insurance except through licensed agents.-Prohibition of requirement of insurance by employes.-Wilful killing or injury of insured live stock.-Burning insured property.-Responsibility of agents.-Forgery.-Issue NOTE. The numbers in parentheses, (), are compiler's sections and are consecutive INSURANCE LAWS. PART I. THE INSURANCE BUREAU. CHAPTER I.—ORGANIZATION OF THE BUREAU. An Act to establish an insurance bureau. [Act 108, S. L. 1871.] established. The People of the State of Michigan enact: (1) § 5100. SECTION 1. That there is hereby established Bureau in the state department a separate and distinct bureau, which shall be especially charged with the execution of the laws heretofore passed, or that may be hereafter passed, in relation to fire, fire and marine, life, and other methods and practices of insurance. Title of act held valid.-Conn. M. L. Ins. Co. v. State Treasurer, 31/6. It is within the power of the legislature to provide for an examination into the affairs of existing insurance companies.-People V. State Ins. Co., 19 / 397. of insurance. term of office, (2) § 5101. SEC. 2. The chief officer of said department Commissioner shall be denominated the commissioner of insurance. He shall be a citizen of this state, and shall have his office at the seat of government, and personally superintend the duties of his office, and shall not be directly or indirectly connected with the management or affairs of any insurance company. He shall be appointed by the governor, by and with the con- Appointment, sent of the senate, and shall hold his office for the term of and salary. two years from and after the first day of July in the year of his appointment and until his successor is appointed and qualified; he shall receive an annual salary of two thousand dollars, to be paid quarterly, on the warrant of the auditor general. He may appoint a deputy, with the approbation of Deputy. the governor, and revoke such appointment at pleasure. Such Powers, deputy shall take and subscribe the oath prescribed by the salaries, etc. constitution, and whenever the commissioner of insurance shall, by reason of sickness, absence, or other cause, be disabled from executing the duties of his office, his deputy, duly appointed, shall execute the duties thereof until such disability be removed, or until a commissioner shall be appointed; duties, Clerks, compensation of. Vacancy. and such deputy shall receive an annual salary of fifteen hundred dollars for the year eighteen hundred and eighty-seven and each year thereafter, payable monthly, on the warrant of the auditor general. The commissioner may employ a chief clerk to discharge such duties as he may assign him, whose compensation shall not exceed twelve hundred dollars per annum, and such other additional or extra clerks as in his discretion the work of the office may require, whose compensation shall not exceed one thousand dollars per annum; the salary of such deputy and clerks to be paid monthly, on the warrant of the auditor general. Whenever a vacancy shall occur in said office of commissioner by reason of death, removal or otherwise, the governor shall fill such vacancy by appointment, by and with the advice and consent of the senOath of office. ate, if in session. Within fifteen days from the time of notice of his appointment the commissioner shall take and subscribe the oath of office prescribed by the constitution and file the same in the office of the secretary of state; and the said commissioner of insurance shall give to the people of the state of Michigan a bond in the penal sum of ten thousand dollars, with sureties to be approved by the auditor general, conditioned for the faithful discharge of the duties of his office. Bond. Powers and duties. Seal of office. (3) § 5102. SEC. 3. The commissioner of insurance shall possess all the powers, perform all the duties, and be subjected to all the obligations and penalties now conferred by law upon the secretary of state, or to which the secretary of state is subject in relation to insurance companies, and the formation thereof, under the laws relating thereto, so that every power and duty thereby conferred on the secretary of state shall, from and after the appointment of such commissioner, be transferred to and conferred upon the said commissioner. The commissioner shall be required to annually report the names and compensation of the clerk employed by him, and the whole amount of expenses of the department during the year; such report shall be made on or before the last day of June in each year, and fifteen hundred copies shall be printed for public information and use. As to the powers of the commissioner over licenses, investigations, etc., see Nat'l Life Ins. Co. v. Commissioner, 25/321; American Ins. Co. v. Stoy, 41/385; People v. State Ins. Co., 19 / 392. The commissioner cannot lawfully revoke a license, except on the investigation and proceedings, and in the particular cases, fixed by the statutes.-Nat'l Life Ins. Co. V. Commissioner, 25/321. It is the policy of this state to limit the business of insurance to such corporations, domestic and foreign, as shall be authorized by the commissioner of insurance to do business after compliance with certain regulations and conditions prescribed by law; and all fire insurance companies are expressly forbidden to transact any business of insurance within this state without the requisite authority. Seamans v. The Temple Company, 105 / 400. An insurance corporation organized in another state can be admitted to do business in this state only upon such terms as this state may impose.-Pollock V. German Fire Ins. Co., 132 / 225. Former duties of secretary of state transferred to commissioner of insurance.-Mich. Mut. Life Ins. Co. v. Hartz, 129 / 104. (4) § 5103. SEC. 4. The said commissioner, with the approval of the governor, shall devise a seal, with suitable in scriptions, for his office, a description of which, with certificate of the approval of the governor, shall be filed in the office of the secretary of state, with an impression thereof, which seal shall thereupon be and become the seal of office of the commissioner of insurance, and the same may be renewed whenever necessary. Every certificate, assignment, or conveyance executed by the said commissioner in pursuance of any authority conferred on him by law, and sealed with his said seal of office, shall be received as evidence, and may be recorded in the proper recording offices, in the same manner, and with like effect, as a deed regularly acknowledged or approved before an officer authorized by law to take the proof or acknowledgment of deeds, or filed in the office of any county clerk or clerk of a court of record, and all copies of papers in the office of the said commissioner, certified by him, and authenticated by the said seal, shall in all cases be evidence in all courts of this state equally and in like manner as the original. An impression of said seal directly on paper shall be as valid as if made on a wafer or wax. books by (5) § 5104. SEC. 5. All books, papers, and documents, Transfer of and all other papers whatever in the office of the secretary secretary of of state, relating to the business of insurance, shall be trans- state. ferred to the custody of the commissioner of the insurance bureau, and be and remain in his charge and custody. (6) § 5105. SEC. 6. There shall be assigned to the said Expenses. commissioner by the secretary of state, at Lansing, suitable rooms for the conducting the business of said bureau; the necessary expenses of which shall be audited by the board of state auditors on the certificate of the commissioner, and paid on the warrant of the auditor.general. (7) § 5106. SEC. 7. The taxes on premiums from in- Taxes on surance companies shall continue to be paid to the state premiums. treasurer on the first day of January, or within sixty days thereafter, in each year, and shall be upon the premiums which, during the year or part of the year ending on the preceding thirty-first day of December, shall have been received by any insurance company, or by any person acting as agent therefor, both upon policies issued by agents in this state, or policies issued at the office of the companies upon application of sub-agents or others, or for any individuals or association of individuals, not incorporated or authorized by the laws of this state, to effect insurance against fire, inland, marine, life, casualty, or other losses and risks, or which shall have been received by any person for such company or agent, or shall have been agreed to be paid for any insurance effected, or agreed to be effected or procured by such company or agent, or against fire, inland, marine, life, casualty, or other risks, although such companies, associations, or individuals may be incorporated or authorized for that purpose by the laws of any other state of the United States, or of any Voucher foreign government. The state treasurer, on receiving such therefor. |