or otherwise, as herein before set forth: Provided, however, That the persons, firms or corporations so associating themselves together for the organization of such company shall have on their pay-rolls at that time not less than ten thousand employes: And provided further, That said Industrial Accident Board may, in its discretion, limit the employers forming or joining in the organization of any such company to those engaged in industrial operations of the same general character, or in operations in which the risks and hazards incurred by their employes are more or less similar in nature and extent.

SEC. 2. Such employers so associating shall prepare in duplicate, articles of association, as hereinafter specified, which shall first be submitted to said Industrial Accident Board and the Commissioner of Insurance for their approval, and when approved, one copy thereof shall be filed in the office of the commissioner of insurance, and the other copy with the county clerk in the county where the principal office of such company will be maintained. Such articles of association shall be signed by all the incorporators, and shall be acknowledged by them, or by their duly authorized officers or agents, before some officer of the State duly authorized to take acknowledgment of deeds.

SEC. 3. Such articles of association shall set forth:

First. The names of the persons, firms, partnership associations and corporations associating in the first instance, their respective residences, the nature of the business in which they are engaged, and the number of persons employed therein by each of them.

Second. That each and all of such incorporators have elected, with the approval of their Industrial Accident Board, to become subject to the provisions of this act, and are forming this corporation for the purpose of mutually insuring their members against liability for any and all payments which may become due and payable to their employes under the provisions of this act.

Third. The name by which such corporation shall be known.

Fourth. The period for which the company is incorporated, which shall not exceed thirty (30) years.

Fifth. The number of directors, which shall be not less than five (5), nor more than fifteen (15), and the names of the directors for the first year.

Sixth. The place where the office of the company shall be located, which shall be within the State of Michigan.

SEC. 4. Any company formed under this act shall be deemed a party corporate and politic in fact and in name, and shall be subject to all the provisions of the statutes in relation to corporations, so far as they are applicable.

SEC. 5. The incorporators 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, the admission of new members and regulations governing the assessment and collection of premiums and assessments; but such by-laws shall not become operative until a true copy thereof shall have been filed with and approved by said Industrial Accident Board.

SEC. 6. Upon the approval of the articles of association of such company by said Industrial Accident Board and the commissioner of in

surance, and upon filing the same with the commissioner of insurance and with the county clerk of the county where the principal office of said company will be kept, the commissioner of insurance shall grant a license to such company to issue policies.

SEC. 7. The board of directors shall determine the amount of the premiums of assessments which the members of such company shall pay for such insurance, in accordance with the nature of the business in which they are engaged, and the probable risk of injury to their employes under existing conditions. The board may also prescribe when and in what manner such premiums shall be paid, and may change the amount thereof both in respect to any or all of its members from time to time, as circumstances may require and the conditions of their respective plants, establishments or places of work in respect to the safety of their employes may justify, but all such premiums or assessments shall be levied on a basis that shall be fair, equitable and just as among such members; and it shall be the duty of such board of directors to call for the required payment of premiums in such amounts as shall, in their judgment, and subject to the approval of said Industrial Accident Board, be sufficient to enable such company to pay all sums which may become due and payable to the employes of any of its members under the provisions of this act, and also the expenses of conducting its business.

SEC. 8. The company shall in its by-laws and policies fix the contingent mutual liability of its members for the payment of losses and expenses not provided for by its cash funds. Such contingent liability of a member shall not be less than an amount equal to the liability imposed by this act.

SEC. 9. If the company is not possessed of cash funds so that it has unearned premiums sufficient for the payment of incurred losses and expenses, it shall make an assessment for the amount needed to pay such losses and expenses upon the members liable to assessment therefor in proportion to their several liability. Every member shall pay his proportional part of any assessment which may be laid by the board of directors, in accordance with the law and his contract, on account of injuries sustained and expenses incurred while he is a member of such company.

SEC. 10. The board of directors may, from time to time, by vote, fix and determine the amount to be paid as a dividend upon policies expiring during each year after retaining sufficient sums to pay all the compensation which may be payable on account of injuries sustained and expenses incurred. All premiums, assessments and dividends shall be fixed and determined in accordance with the experience of said company, but all the funds of the company, and the contingent liability of all the members thereof, shall be available for the payment of any claim against the company.

SEC. 11. Any proposed premium or assessment required of, or any dividend or distribution made to the members, shall be filed with the Industrial Accident Board, and shall not take effect until approved by said board after such investigation as it may deem necessary.

SEC. 12. The board of directors may make and enforce reasonable rules and regulations, not in conflict with the laws of this State, for the prevention of injuries on the premises of members, and for this pur

pose the inspectors of the company shall have free access to all such premises during regular working hours. Any member neglecting to provide suitable safety appliances as provided by law or as required by the board of directors may be expelled by a majority vote of all the members. Any member, or employe of any member, aggrieved by any such rule or regulation, may petition the Industrial Accident Board for review, and it may affirm, amend or annul the rule or regulation.

SEC. 13. Any member of said company, who has complied with all its rules, regulations and demands, may withdraw therefrom at the expiration of the period of one year for which he has elected to become subject to the provisions of this act: Provided, however, That he shall give written notice of such withdrawal to said company at least thirty days before the expiration of such period, and provided further that if at the time of such withdrawal liability may exist against such member and against said company for compensation to employes who have been theretofore killed or injured as herein before provided, such member shall either relieve himself and said company from such liability in the manner provided in Part IV, Section 4 of this act, or shall otherwise protect and indemnify said company against such liability in such reasonable manner as may be required by the board of directors.

SEC. 14. The business year of every company organized, existing or doing business in this State, under and by virtue of the provisions of this act, shall close on the 31st day of December in each year, and every such company shall within sixty days thereafter prepare, under oath of its president and secretary, and file in the office of the Commissioner of Insurance of this State, and also with said Industrial Accident Board, a detailed statement showing its assets and how invested, liabilities, receipts from premiums, and all other sources, an itemized account of all expenditures, salaries of officers, number of policies or certificates in force, amount insured thereby, claims paid, and amount paid on each claim, claims reported but not paid, claims contested and why, and shall answer such other questions as the Commissioner of Insurance (who shall furnish blanks for that purpose) may require, in order to ascertain its true financial condition. The Commissioner shall publish such annual statements in detail in his annual report.

SEC. 15. If any officer of the company shall falsely make oath to any certificate required to be filed with the Insurance Commissioner, he shall be guilty of perjury.

SEC. 16. Any such company formed under this act shall have power to amend its articles of association and by-laws at its regular annual meeting or at special meetings called and held as provided in its bylaws, but said amendments shall, before they become operative, be approved and filed in the same manner as the original articles and bylaws.

SEC. 17. Any such company formed under this act shall have power to own, hold and acquire such real and personal property as shall be necessary for the transaction of its business.

SEC. 18. Any company formed under this act may sue and be sued in any court of law or equity, with the same rights and obligations as a natural person, and in addition to the powers herein before enumerated, shall possess and exercise all such rights and powers as are necessarily incidental to the exercise of the powers expressly granted herein.

PART VI.

ADMINISTRATION BY COMMISSIONER OF INSURANCE.

SECTION 1. Whenever five or more employers, who have become subject to the provisions of this act, and who have on their pay-rolls an aggregate number of not less than ten thousand employes, shall in writing request the commissioner of insurance so to do, he shall assume charge of levying and collection from them such premium and dividends as may from time to time be necessary to pay the sums which shall become due their employes, or dependents of their employes, as compensation under the provisions of this act, and also the expense of conducting the administration of such funds; and shall disburse the same to the persons entitled to receive such compensation under the provisions of this act: Provided, however, That neither the commissioner of insurance nor the State of Michigan shall become or be liable or responsible for the payment of claims for compensation under the provisions of this act beyond the extent of the funds so collected and received by him as hereinafter provided.

SEC. 2. The commissioner of insurance shall immediately upon assuming the administration of the collection and disbursement of the moneys referred to in the preceding section, cause to be created in the State Treasury a fund to be known as:

ACCIDENT FUND.

As accidents occur and are reported from time to time, each such employer shall contribute to this fund to the extent of such premiums or assessments as the commissioner shall deem necessary to pay the compensation accruing under this act to employes of such employers or to their dependents, which premiums and assessments shall be levied in the manner and proportion hereinafter set forth.

SEC. 3. It is the intention that the amounts raised for such fund shall ultimately become neither more nor less than self-supporting and the premiums or assessments levied for such purpose shall be subject to readjustment from time to time by the commissioner of insurance as may become necessary.

SEC. 4. The commissioner of insurance may classify the establishments or works of such employers in groups in accordance with the nature of the business in which they are engaged and the probable risk of injury to their employes under existing conditions. He shall determine the amount of the premiums or assessments which such employers shall pay to said Accident Fund, and may prescribe when and in what manner such premiums and assessments shall be paid, and may change the amount thereof both in respect to any or all of such employers from time to time, as circumstances may require, and the condition of their respective plants, establishments or places of work in respect to the safety of their employes may justify, but all such premiums or assessments shall be levied on a basis that shall be fair, equitable

and just as among such employers. It shall be the duty of the commissioner of insurance to call for the required payment of premiums in such amounts as shall, in his judgment, and subject to the approval of said Industrial Accident Board, be sufficient to enable him to pay all sums which may become due and payable to the employes of any such employer who has become subject to the provisions of Part VI of this act, and also the expenses of administering such funds.

SEC. 5. If any employer shall make default in the payment of any contribution, premium or assessment required as aforesaid by the commissioner of insurance, the sum due shall be collected by an action at law in the name of the State as plaintiff, and such right of action shall be in addition to any other right of action or remedy. In case any injury happens to any of the workmen of such employer during the period of any default in the payment of any such premium, assessment or contribution, the defaulting employer shall not, if such default be after demand for payment, be entitled to the benefits of this act, but shall be liable to suit by the injured workman (or by his dependents in case death results from such accident) as if he had not elected to become subject to this act. In case, however, the amount actually collected in such by such injured workman, or his dependents, shall equal or exceed the compensation to which the plaintiff therein would be entitled under this act, the plaintiff shall not be paid anything out of said Accident Fund. If the said amount shall be less than such compensation under this act, the Accident Fund shall contribute the amount of the deficiency. The person so entitled under the provisions of this section shall have the choice (to be exercised before suit) of proceeding by suit or taking under this act. If such person shall take under this act, the cause of action against the employer shall be assigned to the State for the benefit of the Accident Fund.

SEC. 6. Any employer subject to the provisions of Part VI of this act, who has complied with all the rules, regulations and demands of the Industrial Accident Board and the Commissioner of Insurance, may withdraw therefrom at the expiration of the period of one year for which he has elected to become subject to the provisions of this act : Provided, however, That he shall give written notice of such withdrawal to said Commissioner of Insurance at least thirty days before the expiration of such period: And provided further, That if at the time of such withdrawal liability may exist against employer for compensation to employes who have been theretofore killed or injured, as hereinbefore provided, such employer shall either relieve himself and the Commissioner of Insurance from such liability in the manner provided in Part IV, Section 4 of this act, or shall otherwise protect and indemnify said Commissioner of Insurance against such liability in such reasonable manner as he may require.

SEC. 7. In case any controversy shall arise between the commissioner of insurance and any employer subject to the provisions of Part VI of this act, relative to any rule or regulation adopted by said commissioner of insurance, or any decision made by him in respect to the collection, administration and disbursement of such funds, or in case any controversy shall arise between any employe claiming compensation under the provisions of this act and said commissioner of insurance, all such controversies of every kind and nature shall be subject to re