De ancun, and at the election of any suci insurance com- ď insurans as a compensation fc suci estimate, one cent for eazi Thousanč dolas msured: Provided. Tha viene by Provis The laws of any other state at amma vaiano required be made by an insurance commissione o che state offrer. The official sercacat of any suci., commissione" o offre, being theĉ with the semetary di sane (commissioner d msurans, and showing the annual officia vanator ĐỂ The polines of any company doing business vidi sua stane, and showing list the basis of sua vanation, shal be suffzert, and stand in the base of any valuation of the policies ĐỂ sui conary, by œ mãe the direction of the secretary of state commissioner ɗ insurance of this state: Du 100 Tomatpe ronpary shall be permitted transact business within thi Kue Ulies The amount of 15 assets sial equa the De vaine Dusmies of all its oustanding obligations, as determined according 16 The assumptions in regard to rates of interest and moralry as berem before provided; and in case the assets of any “One bal Transacting business Vill his state shal at any time le pse that 16 required by the provisions of this art, the NHCterary of State Commissione ɗ insuran skal serve Writer notre mor. The persoL designated by suci compary TO Tunette semi d Fos mue te lays of this sume, o shal audre SUA DODs by mai to the prmeipa office of suri company, and publist the same & least three times in some lev spare createt daly in this state; and I. anе tous to k The expiration of ter des from. The series of publicato of PR, such noise, an agent or offre of suci compar, shal apdications for policies, 02 INSTR policies. Vide sur gens of asses exists, and the cost of goring suci nous Te mains mbait be sua compar, he shal in supper tO THE TRIabe Jeurist IL serion ten of this act: Promed for. I That viel the certificate of the weteam of state sioner of surans of the official valuation of the polices Issued ir ar company organizet mer the jews of th state sul not be asemel ar die State 11 im od a Vanation of the same je de instas ofte of sua oler sate then al comali organized unge the were of sui Other Sale. shall be PROTIPAL TO have a separate vaNUNTOL made me the author of the wemezar of state sione & insurans of the state, as berell jungel Forfeiture of policy. Company to furnish data annually. any policy, until such tax is paid; and any agent or officer receiving any such application, or issuing such policy, while such default continues, shall be liable to a penalty of one hundred dollars, to be collected in the same manner with the other penalties hereinbefore provided; and the specific tax herein provided for shall be in lieu of all other taxes in this state. Construction of this section, prior to the amendment of 1875, with section 7 of this compilation.-Conn. M. L. Ins. Co. v. State Treasurer, 31 / 6. (51) § 7206. SEC. 17. No policy of insurance on life issued after this act shall take effect, by any company organized under the laws of this state, shall be forfeited or become void by the non-payment of any premium thereon, after the third, any further than as follows: The net value of the policy when the premium becomes due and is not paid shall be ascertained according to the "American experience table" rate of mortality, with interest at four per centum per annum. A surrender charge shall be first deducted from such net value on the following basis, to wit: From policies that have paid three full years' premiums, forty per cent; from policies that have paid four full years' premiums, thirtysix per cent; from policies that have paid five full years' premiums, thirty-two per cent; and so on in like manner decreasing the discount four per centum for each full year's premium paid until the discount is exhausted, when no surrender charge shall be made. After deducting the surrender charge from the net value, the remainder shall be considered a net single premium of whole life non-participating insurance, and the amount it will insure shall be determined according to the age of the party at the time when the unpaid premium became due and the assumptions aforesaid in regard to rate of interest and table of mortality. In case of any indebtedness on any policy, such indebtedness shall be first deducted from the net value remaining after deducting the discount, and the remainder, if any, shall be used as the net single premium as aforesaid. re Where a company takes a note for premium due and gives renewal ceipts therefor, the policy continues in force and the company cannot afterward insist upon its forfeiture as for non-payment.-Mich. Mut. Life Ins. Co. v. Bowes, 42/19; Tabor v. Mich. Mut. Life Ins. Co., 44 / 324. And a bill in equity lies to re-establish the policy if surrendered.-Tabor v. Mich. Mut. Life Ins. Co., 44/324. What not deemed a revival of a lapsed policy.— Clark v. Metropolitan Life Ins. Co., 107 / 160. Non-forfeitable after third payment.--Mich. Mut. Ins. Co. v. Detroit Com. Council, 133 / 411. (52) § 7207. SEC. 18. Every company doing a business of life insurance within this state shall annually in the month of January, furnish the secretary of state [commissioner of insurance] the data necessary for determining the amount of its liabilities, and the valuation of all its outstanding policies to be made by the secretary of state [commissioner of insurance], or under his authority, and in making such valuation, Rate of inter- the rate of interest to be assumed shall, after and including the year eighteen hundred and ninety-six, be four per centum est, etc. transact per annum, and at the election of any such insurance company such rate of four per centum shall be assumed any year prior to eighteen hundred and ninety-six, and the rate of mortality shall be that established by the "American experience life table," as shown in the schedule hereto annexed, and such company shall pay the secretary of state [commissioner Fee. of insurance], as a compensation for such estimate, one cent for each thousand dollars insured: Provided, That where, by Proviso. the laws of any other state, an annual valuation is required to be made by an insurance commissioner or other state officer, the official certificate of any such commissioner or officer, being filed with the secretary of state [commissioner of insurance], and showing the annual official valuation of the policies of any company doing business within such state, and showing also the basis of such valuation, shall be sufficient, and stand in the place of any valuation of the policies of such company, by or under the direction of the secretary of state [commissioner of insurance] of this state; but no Companies company shall be permitted to transact business within this prohibited to state, unless the amount of its assets shall equal the net value business, etc. of all its outstanding obligations, as determined according to the assumptions in regard to rates of interest and mortality as herein before provided; and in case the assets of any company transacting business within this state shall at any time be less than is required by the provisions of this act, the sec- Commissioner retary of state [commissioner of insurance] shall serve a to serve written notice upon the person designated by such company to receive service of process under the laws of this state, or shall address such notice by mail to the principal office of such company, and publish the same at least three times in some newspaper circulated daily in this state; and if, after Notice to be the expiration of ten days from the service of publication of published. such notice, any agent or officer of such company shall receive applications for policies, or issue policies, while such deficiency of assets exists, and the cost of giving such notice remains unpaid by such company, he shall be subject to the penalties provided in section ten of this act: Provided further, Further That when the certificate of the secretary of state [commis- proviso. sioner of insurance] of the official valuation of the policies issued by any company organized under the laws of this state, shall not be accepted by any other state in lieu of a valuation of the same by the insurance officer of such other state, then all companies organized under the laws of such other state, shall be required to have a separate valuation made under the authority of the secretary of state [commissioner of insurance] of this state, as herein provided. "Commissioner of insurance."-See note to section 36 of this compilation. The method of taxation provided is not obnoxious to the constitutional requirement of uniformity.-Mich. Mut. Life Ins. Co. v. Hartz, 129 / 104. This section clearly recognizes that, to arrive at the net assets of the company, it is necessary to deduct from its gross assets its liabilities; and it is equally. clear that the property owned by an insurance company cannot be said to be more than the difference between these two sums.-Mich. Mut. Ins. Co. v. Detroit Com. Council, 133 / 411. notice, etc. False representations as to capital. Penalties therefor. When attorney general may institute proceedings. Proviso. Protection of companies against false medical examinations. (53) § 7208. SEC. 19. If any company insuring life within this state shall, by means of any advertisement, circular, notice or statement, printed or written, published, posted, or circulated through and by the agency of any officer, agent, or other person, or by any other means, falsely represent or hold out to the public that the capital stock of such company is greater than its actual amount, or that the accumulation of such company is greater than its actual cash or market value, every director, officer, or agent of such company guilty of any participation therein, shall be deemed guilty of a misdemeanor, and on conviction thereof, shall be punished by a fine not exceeding one thousand dollars, or by imprisonment in the county jail not exceeding three months, or by both such fine and imprisonment, in the discretion of the court; and if any such company, after any such false advertisement, circular, notice, or statement shall have been published, posted or circulated, shall receive any money, note, or obligation for the payment of money, from any person as a consideration for any insurance made, or policy issued or to be issued by such company, such money, note or obligation shall be deemed and taken to have been received without consideration; and the directors of such company, and any officer or agent receiving the same, shall be jointly and severally liable in an action of assumpsit for the repayment thereof, and shall also, in like manner, be liable to the person insured, for the amount of the insurance. And any such false advertisement, circular, notice or statement, shall be sufficient ground for proceedings on the part of the attorney general, in the supreme court, for a forfeiture of the chartered privileges of such company, or for an order prohibiting the further transaction of business by it within this state: Provided, That no such forfeiture shall be declared on that ground, solely, if it shall appear either that the publication was by mistake, or that the directors, officers, or agents making the same have been dismissed from the service of such company, and that the company has published such true statement of its affairs as may have been directed by the attorney general, or such court. (54) § 7209. SEC. 20. Any physician who, as medical examiner for any such company, or as the reference of, or medical examiner for any person seeking insurance therein, shall knowingly make any false statement or report to the company, or any officer thereof, concerning the bodily health or condition of any applicant for insurance, or concerning any other matter or thing which might affect the propriety or prudence of granting such insurance, shall be deemed guilty of a misdemeanor, and on conviction thereof, shall be liable to a fine not exceeding one thousand dollars, or to imprisonment in the county jail not exceeding three months, in the discretion of the court, and he shall also be liable to the company in an action on the case for the full amount of any insurance obtained from such company by means or through the assistance of such false statement or report. Report of company's examining physician as evidence on the question of the soundness of health of the insured.-Rhode v. Life Ins. Co., 129/112; Rhode v. Life Ins. Co., 132 / 503. mortgages to enforced. (55) § 7210. SEC. 21. The mortgages authorized to be Deposited deposited with the state treasurer, under this act, shall be be assigned to made or assigned to him in his name of office, but shall not state treasurer. be subject to assignment or sale by him, except as the company depositing the same may become entitled to receive the same back according to the conditions of this act; but said when may be state treasurer may enforce the same in his name of office, whenever necessary to pay claims as hereinbefore provided. The custody of any securities by the state treasurer under Custody of this act, shall be deemed the custody of the state, and any deemed sale, transfer by hypothecation, or conversion of any such custody of securities by the state treasurer, or by any officer, clerk, or other person employed in his office, except as authorized by this act, shall be deemed an act of embezzlement, and shall be punished by imprisonment in the state prison not more than fourteen years, or by fine not exceeeding two thousand dollars, or by both such fine and imprisonment in the discretion of the court. securities the state. insuring of statutes. violation. (56) § 7211. SEC. 22. The business of insuring lives Prohibiting within this state, by any private individual; association, or lives conpartnership, or by any incorporated company, organized or trary to existing under any authority whatsoever, other than the statutes of this state, is hereby, except as is provided by this act, wholly prohibited; and any person who shall solicit or obtain within this state, applications for insurance upon lives by any such private individual, association, partnership, or incorporated company, contrary to the provisions of this act, shall be liable to a penalty of one hundred dollars for every Penalty for application obtained, to be sued for and recovered in the name of the people, by the attorney general, or prosecuting attorney of the proper county, either by action of debt or criminal prosecution; and any person who shall have paid to Money, reany agent of such unauthorized individual, association, part-covery of, from nership, or company, any premium moneys for insurance ized agent or granted or to be granted, shall be entitled to recover the same back from such agent, or at his option, from the person, association, partnership, or company for which he acted, by action of assumpsit, to be brought at any time within six years after such payment. As to the transaction of insurance business prohibited by law, see notes to section 44 of this compilation. unauthor company. from all claims (57) § 7212. SEC. 23. It shall be lawful for any hus- Insurance free band to insure his life for the benefit of his wife, and for any of creditors. father to insure his life for the benefit of his children, or of any one or more of them; and in case that any money shall |