filed with and approved by the Commissioner of Insurance, 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 choosing officers, trustees or directors, who shall each and all of them be residents of this State; the filling of vacancies; the period for the commencement and termination of its fiscal year, and prescribe the liabilities of the members to be assessed towards defraying the losses and expenses of such company, and the mode and manner of collecting such assessments, and the members shall be liable to Assessment assessment for all liabilities of the company to the extent for liabilities. declared in the articles of association.

examination,

where filed.

SEC. 6. The articles of association thus to be filed by any Articles, such corporation, shall be examined by the Attorney Gen- etc., of. eral, and if found to be in accordance with the requirements of this act, he shall certify the same to the Commissioner of Insurance, and said commissioner in person, or by his deputy, or by the appointment of some other disinterested person for that purpose, shall, if he approve of the articles of association, examine and certify under oath that any such company Certificate. has received and is in actual possession of the premiums or engagements of insurance, as the case may be, to the full extent required by this act. Copies of such certificate shall Copies, be filed in the office of the Commissioner of Insurance, whose duty it shall then be to furnish the corporation with a certified copy of the charter and the certificate aforesaid, which, upon being filed by it in the county clerk's office of the county in which the office of any such company is located, shall be Authority to its authority to commence business and to issue policies of business. insurance, and the same may be used in evidence for or against said corporation, and suits. may be brought against any such company in any county in this State in which it shall do business or take risks in which the plaintiff resides or in the county where the principal office of the company is located.

commence

SEC. 7. The corporators, trustees, or directors, as the case By-laws. may be, 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, but such by-laws shall not be operative when until filed with and approved by the Commissioner of Insur- operative, ance, who shall furnish the company with a certified copy thereof.

powers.

SEC. 8. Any company formed under this act shall be Corporate deemed a body corporate and politic in fact and in name, and shall be subject to all the provisions of the statute in relation to corporations, so far as they shall be practicable. SEC. 9. Any such company formed under this act shall Articles, how have power to amend its articles of association at the regular annual meeting held according to the provisions of said. articles of association and upon giving notice of such inten

amended.

Certificate of compliance, and copy.

When operative.

Suits at law.

Premium notes.

Advance

tion by printed circular, or postal card, or letter to be addressed and sent by mail at least three weeks previous to such meeting to all the members, officers, trustees, and directors of such company. Said amendments so had shall be submitted to the Attorney General and his certificate of compliance with the law obtained, and a copy of said amendments with certificates shall be filed in the office of the Commissioner of Insurance, and if he approves of such amendments, shall make a certified copy thereof and deliver the same to the company, which, upon being filed with the county clerk of the county in which the office of such company is located, shall become operative.

SEC. 10. Suits at law may be maintained by corporations formed under this act against any of its members, for any cause relating to the business of such corporation; also, suits at law may be prosecuted and maintained by any member against such corporation for claims which have accrued, if payments are withheld more than sixty days after such claims shall have become due. The articles of association and bylaws of any such company organized under the provisions of this act may provide for the receiving of applications or agreements from its members for insurance with or without taking from the insured any premium note or notes; and it shall be lawful for such mutual insurance companies to provide in its articles of association for advance assessments upon such agreements or policies issued thereon, or upon the premium note or notes as the case may be, pro rata, according to the amount of such agreements or policies or premium notes for the payment of losses and expenses to be incurred Assessments, by such companies, which assessments shall be based upon the most accurate data obtainable, and all such premium notes, or agreements, or assessments shall be a lien upon the property insured to the amount of such note, notes, agreements, assessments, costs and interest due thereon.

assessments.

how based.

Statement of condition, what to exhibit.

Membership.

Risks.

Premiums.

SEC. 11. It shall be the duty of the president or vice-president and secretary of any such company organized under this act, annually on the first day of January, or within one. month thereafter to prepare under their own oath, and deposit in the office of the Commissioner of Insurance, a statement of the condition of such company on the thirty-first day of December next preceding, exhibiting the following facts and items, namely:

First, The number of members belonging to the company; the number of members added during the year; the number of members who have withdrawn, or whose policies have been cancelled during the year;

Second, The amount of property at risk December thirtyfirst of the previous year, the amount of risks added during the year; the amount of risks cancelled, withdrawn, or terminated during the year, and the net amount at risk by the company;

Third, The amount of premium or deposit notes or agree

ments in force; the amount of cash premiums or assessments actually on hand; the amount of outstanding assessments not cancelled; the nature and amount of all resources; the total amount of all resources;

Fourth, The claims for losses due and payable; the claims Claims. for losses not matured; the claims for losses resisted; the nature and amount of all other claims, due or secured, and the total amount of liabilities;

Fifth, The amount of premiums on deposit notes taken Receipts. during the year; the amount collected on assessments which are levied during the year; the amount collected during the year on assessments which were levied in prior years; the amount received from membership or policy fees or from any other sources constituting an expense to the insured; the amount received from percentage on increased or decreased insurance; the income from all other sources, and the total income;

Sixth, The amount paid for losses during the year, stating Expenditures. the amount of same which was for losses of previous years;

the amount of salary and fees paid to officers and directors; the amount of all other expenditures during the year, and the total expenditures during the year;

change in form

Seventh, The Commissioner of Insurance may from time Annual to time make any change in the form of annual reports to reporte be made by such companies, to elicit further information re- of. garding the conditions of the company.

report, filed in

SEC. 12. A copy of every such sworn statement and re- sworn port shall in said month of January be filed in the office of statement and the county clerk of such county where the office of the com- county. pany is located; also a copy of such sworn statement with the additional affidavit showing that the same has been filed Affidavit. in the office of the county clerk as herein provided, shall be filed in the office of the Commissioner of Insurance; and if upon examination of such annual statement, or of the affairs of the company, it shall appear to the Commissioner of Insurance that the losses and expenses of any company organized under this act have, during the year, exceeded the cash premiums and assessments collected to such an extent as to imply a doubt in the mind of said Commissioner of Insurance as to the solvency of said company, and its ability to pay all its losses and other debts, it shall be the duty of Notice to said Commissioner of Insurance to notify the officers of said business. company to, at the end of sixty days from the date of such notice, discontinue the issuing of policies, and to suspend its business until such time as that the officers and directors of said company shall collect assessments, and pay such losses and debts, and satisfy said Commissioner of Insurance of the solvency of said company.

discontinue

statement, etc.

SEC. 13. In case the officers or directors of such company Penalty for shall neglect or refuse to perform any of the duties required neglect, false of them by this act, or shall knowingly make or permit to be made any false or imperfect statement in any annual or

When

other report required to be made by them, or shall knowingly aid in or formally consent to any violation of any of the provisions of this act, then in such case every such director, officer, or person so offending shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be subject to punishment by fine not exceeding five hundred dollars, or to imprisonment not exceeding one year; and if such commissioner neglect or refusal on the part of such officers or directors to conform to and be guided by the requirements of this act is known to the Commissioner of Insurance, it shall be his duty to notify the prosecuting attorney of the county where the office of such company is located, whose duty it shall be to commence legal proceedings against such officers or directors to enforce the penalty hereby imposed.

to notify prosecutor

to enforce penalty.

examination.

Books, open to SEC. 14. The books of any such company shall be open to the examination of any and all of the officers and of the members at any time; also, to the inspection of the Commissioner of Insurance in person, or by deputy, whenever he shall deem an examination necessary.

Insolvency,

etc.

Receiver, appointment of, hearing.

SEC. 15. In case of insolvency, neglect or refusal of any such company to meet its liabilities and discharge all outstanding claims against such company, the Commissioner of Insurance may in person or by counsel appear in the circuit court of the county where the office of such company is located, and move for the appointment of a receiver for said company, and the company may also be heard upon such motion, and if it shall appear to the satisfaction of the court that the affairs of the company are in such condition that such motion for the appointment of a receiver should be granted, the said court shall then and there appoint a receiver for such company, who shall be empowered to take possession of all books, papers, moneys, and personal property of such company, in accordance with the provisions of this act and in conformity to the charter and by-laws of such company. Such receiver shall keep an accurate account of all moneys or other property received by him; he shall pay over all moneys by him collected and the proceeds of all personal property pro rata upon the liabilities of the company, retaining therefrom for his services and expenses such an amount as the court may deem reasonable; he may sue for and recover any legal assessments made upon the policy holders or members of the company, and he shall use due diligence in the settlement of the affairs of the company, and make his final report to the court making the and discharge. appointment, from whence he shall get his discharge. This act is ordered to take immediate effect. Approved June 18, 1907.

Duty of.

Final report

[No. 177.]

AN ACT to provide for the free distribution of the books which have been withdrawn from the traveling libraries on account of their worn condition.

The People of the State of Michigan enact:

authorized.

SECTION 1. The State Librarian is hereby authorized to Distribution distribute free in the districts where, in the opinion of the State Librarian, they are needed, any and all books which, on account of their worn condition, have been withdrawn from the traveling libraries.

This act is ordered to take immediate effect.
Approved June 18, 1907.

[No. 178.]

AN ACT to provide for the regulation of the sale by dealers and the keeping on hand by consumers, of gasoline.

The People of the State of Michigan enact:

of

kerosene, etc.

SECTION 1. Every person dealing at retail in gasoline, cans, etc., to benzine or naphtha shall deliver the same to the purchaser be used for only in barrels, casks, packages or cans painted vermillion gasoline, red and having the word "gasoline," "benzine," or "naphtha' plainly stenciled thereon. No such dealer shall deliver kerosene in a barrel, cask, package or can painted or stenciled as hereinbefore provided. Every person purchasing gasoline, benzine or naphtha for use shall procure and keep the same only in barrels, casks, packages or cans painted and stenciled as hereinbefore provided. No person keeping for use or using kerosene shall put or keep the same in any barrel, cask, package or can painted or stenciled as herein before provided: Provided, however, That in case of gasoline, ben- Proviso, as to zine and naphtha being sold in bottles for cleaning and sim- gasoline sold in ilar purposes, it shall be deemed sufficient if the contents of such bottles are so designated by a label securely pasted or attached thereto with the words "gasoline, benzine or naphtha," printed in bright red ink in letters not less than one-fourth inch in size.

bottles.

Inspector.

SEC. 2. It shall be the duty of the State Oil Inspector Duties of and his deputies to enforce the provisions of this act; and State Oil their compensation and expenses while so engaged shall be paid from the fund derived from inspection of illuminating oil.