or insuring any person against bodily injury or disablement resulting from accident and against disablement resulting from disease, or insuring against loss or damage resulting from accident to or injury sustained by an employe or other person for which accident or injury the insured is liable, or insuring against loss or damage by burglary, theft or housebreaking, or insuring against glass breakage, or insuring against loss from injury to persons or property which results accidentally from steam boilers, elevators, electrical devices and all machinery and appliances used in connection therewith or operated thereby, or insuring against loss resulting from accidental damage to automobiles or caused accidentally by automobiles, or insuring against loss or damage by water to any goods or premises arising from the breakage or leakage of sprinklers and water pipes, or insuring against any loss or damage resulting from accident to or injury suffered by any person for which loss or damage the insured is liable, or insuring persons, associations or corporations against loss or damage by reason of the giving or extending of credit, or insuring against loss or damage on account of encumbrances upon or defects in the title to real estate, and against loss by reason of the nonpayment of the principal or interest of bonds, mortgages or other evidences of indebtedness, or insuring against any other casualty which may be lawfully made the subject of insurance or contract, shall make any contract of insurance on property located within this State, or agreement as to such con- Special tract, other than as plainly expressed in the policy issued contracts. or to be issued thereon; nor shall any such corporation, association, partnership, Lloyds or individual underwriters, or officer, agent, solicitor or representative thereof, or any other person, directly or indirectly, in any manner whatsoever, pay or allow, or offer to pay or allow as inducement to such insurance, or after the insurance shall have been effected, any rebate from the premium which is specified in the policy, Dividends. or any special favor or advantage in the dividends or other benefit to accrue thereon, or any valuable consideration or inducement whatever, not specified in the policy or contract of insurance, or give, sell or purchase, or offer to give, sell or purchase, as inducement to such insurance, or in connection therewith, any stock, bonds or other securities of any insurance company, or other corporation or association, or any dividends or profits accrued thereon, or anything of value whatsoever not specified in the policy, nor shall any insurance agent or representative, or any other person, directly or indirectly, either by sharing commissions or in any manner whatsover, pay or allow or offer to pay or allow as inducement to such insurance, or after the insurance shall have been effected, any rebate from the premium which is specified in the policy; nor shall the insured, his agent or representative, directly or indirectly, accept or knowingly receive any such rebate from the premium specified in the

Proviso,

distribution of surplus, etc.

Further proviso, commissions.

policy: Provided, That this section shall not prevent any corporation, person, partnership or association lawfully doing any of the kinds of insurance or indemnity in this State, herein enumerated, from the distribution of surplus and dividends to policy-holders after the first year of insurance: Provided further, That nothing herein contained shall prohibit agents engaged in the business of soliciting, writing or making any of the kinds of insurance or contracts herein enumerated, for any company or association duly licensed to do business in this State, from receiving commissions on any such insurance or contracts effected for others or for themselves, or prohibit said agents from paying commissions or to any duly authorized solicitor or to other agents engaged in the business of soliciting, writing or making such insurance or contracts for any company or association duly licensed to do business in this State, when such agent or agents have assisted in the soliciting, writing or making of such insurance or contracts: And provided further, That nothing herein shall prevent the participating payment on participating policies or by a mutual company of an equitable portion of the earnings of any such company, called dividends, nor prevent the applying of such dividends on the payment of premiums.

Further

proviso, policies.

Penalty for violation.

Idem.

Testimony, books, etc.

SEC. 2. Any person knowingly receiving as inducement to such insurance or indemnity, as enumerated in section one of this act, any rebate of premium, shall be guilty of a misdemeanor, and shall upon conviction be fined the sum of one hundred dollars, or be imprisoned in the county jail for thirty days, or both.

SEC. 3. Any corporation, association, partnership, Lloyds or individual underwriters, or agent, solicitor, representative or any other person or persons, violating any of the provi sions of section one of this act, shall be guilty of a misdemeanor, and shall upon conviction thereof, be fined in any sum not less than one hundred dollars nor more than five hundred dollars, or shall be imprisoned in the county jail for any period not exceeding six months, or both.

No person shall be excused from attending, and when ordered so to do, from testifying or producing any books, papers or other documents before any grand jury, court, or magistrate upon any investigation, proceeding or trial for a violation of any of the provisions of this act, upon the ground or for the reason that the testimony or evidence, documentary or otherwise, required of him or her may tend to convict him or her of a crime, or subject him or her to penalty or forfeiture; but no person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which he or she may have been required so to testify or to produce evidence, documentary or otherwise, and no testimony so given or produced shall be received against him or her upon any criminal investigation or proceeding.

SEC. 5. The provisions of this act shall not apply to town Mutual and county fire, hail and wind storms mutual companies companies authorized to do business under the laws of this State.

SEC. 6. All acts or parts of acts in conflict with any of the provisions of this act are hereby repealed. Approved April 25, 1911.

exempted.

[No. 128.]

AN ACT to amend section one of act number one hundred sixty-seven of the public acts of eighteen hundred ninetyseven, entitled "An act to prevent the forfeiture of fire insurance policies by the violation of any condition of the policy when such violation has been without prejudice to the insurer," approved May twenty-nine, eighteen hundred ninety-seven, being compiler's section five thousand one hundred eighty of the Compiled Laws of eighteen hundred ninety-seven.

The People of the State of Michigan enact:

amended.

SECTION 1. Section one of act number one hundred sixty- Section seven of the public acts of eighteen hundred ninety-seven, entitled "An act to prevent the forfeiture of fire insurance policies by the violation of any condition of the policy when such violation has been without prejudice to the insurer," approved May twenty-nine, eighteen hundred ninety-seven, being compiler's section five thousand one hundred eighty of the Compiled laws of eighteen hundred ninety-seven, is hereby amended to read as follows:

voided by

SEC. 1. No policy of fire insurance shall hereafter be de- Policy not clared void by the insurer for the breach of any condition breach of of the policy if the insurer has not been injured by such condition." breach, or where a loss has not occurred during such breach, and by reason of such breach of condition. Approved April 25, 1911.

Future contracts.

When void.

Unauthorized insurance.

Penalty.

Solicitors, etc.

Fine, etc.

"Company" defined.

[No. 129.]

AN ACT to prohibit the making and enforcement of unauthorized contracts of fire insurance.

The People of the State of Michigan enact:

SECTION 1. All future contracts of fire insurance upon property real or personal located in this State shall be held and deemed to be made and consummated within this State. SEC. 2. All future contracts of fire insurance upon property real or personal located in this State in companies not at the time of the making of such contracts duly authorized under the laws of this State to make such contracts are hereby declared to be void and unenforcible and no action at law or in equity shall be maintained on any such contract in any court.

SEC. 3. Any company not being duly authorized under the laws of this State to insure property located herein, which shall make or issue or cause to be made or issued any policy of fire insurance upon real or personal property located in this State, shall be liable to a penalty of not less than two hundred dollars nor more than one thousand dollars for each contract made or caused to be made by such company, to be recovered in an action in any court of competent jurisdiction in the name of the people of the State of Michigan. One-third of any such penalty collected shall go to the informer and the balance shall be paid into the State treasury for the use and benefit of the State.

SEC. 4. Any person who as solicitor, broker, agent or in any other capacity takes or receives any application for fire insurance in any company not duly authorized under the laws of this State, upon any real or personal property located in this State, or performs any service for any such unauthorized company, either in making a survey or examination of property for such company, making out or forwarding any application for fire insurance to such unauthorized company, delivering any unauthorized policy, or collecting or receiving the premium or any part thereof on such policy, making any endorsement thereon, taking any part in the settlement or adjustment of any loss occurring under such unauthorized policy, shall be deemed guilty of a felony and shall be subject to a fine of not to exceed two hundred dollars or imprisonment in the Michigan Reformatory not to exceed one year, in the discretion of the court.

SEC. 5. The word "company" as used in this act shall be held to mean and include a corporation, either mutual or stock, association, joint stock company, organization of Lloyds and underwriters, and any person or group of persons either jointly or collectively writing or making fire insurance upon real or personal property located in this

State: Provided, however, That the provisions of this act Proviso. shall not apply to individuals, firms and corporations, or unincorporated associations of individuals, firms and corporations who insure only their own properties through the medium of reciprocal or inter-insurance contracts. Approved April 25, 1911.

[No. 130.]

AN ACT to amend sections one and five of act number three of the public acts of eighteen hundred eighty-five, entitled "An act for the formation of corporations for the cultivation of art," the same being compiler's sections eight thousand two hundred twenty-six and eight thousand two hundred thirty of the Compiled Laws of eighteen hundred ninety-seven.

The People of the State of Michigan enact:

SECTION 1. Sections one and five of act number three of Sections amended. the public acts of eighteen hundred eighty-five, entitled "An act for the formation of corporations for the cultivation of art," approved February sixteen, eighteen hundred eightyfive, being compiler's sections eight thousand two hundred twenty-six and eight thousand two hundred thirty of the Compiled Laws of eighteen hundred ninety-seven, are hereby amended to read as follows:

SEC. 1. Any number of people, not less than five, resi- Number to dents of this State may hereafter become a body corporate incorporate. for the purpose of founding a public art institute in the manner and for the purposes herein set forth.

SEC. 5. Any person who shall contribute the sum set Membership. forth in the articles of association shall be a member thereof. If the total number of members, other than honorary, shall at any time fall below the number subscribing the original articles of incorporation, it shall be the duty of the surviving members to elect as many new members as shall be necessary to restore such original number. It shall also be competent for the members of said corporation to elect persons meritorious for the cultivation of art as honorary members, who shall have all the rights and privileges of regular members, but such honorary members shall not, at any time, exceed ten in number.

Approved April 25, 1911.