Telegram-herald., 1886-12-05

1
operative associations which take Tisss ou
the lives q children or persons under TWEEN
| ty-one years of age. The Attorney General E
| opinion which is comprehensive and CON-
piete is printed in full below ana needs no
further explanation
srAgr of MlcmshN.
AII0ENFY GfNFEAl's OfIrf
LANSING. Nlch.. Dec. S. ls-t
H9a Houy :. Raymond. Cema3is.l.ne ~
Insurance. sIE. You have submitted 10 me
for nay s.deraiiOn. two questions relai-
ing 10 the insurance of iutauis FIRST as t0
whether there is any legal objection or ob
siscle 10 the insurance of minors by the
ordinary stock insurance oompanies and
second as 10 whether there is any objection
d such insurance being taken by o9-opefa-
tive Insurance associations oresai9ed under
Chapter lis OF Howelis Statutes. and TO
minors becoming members q such associ4-
lions
First As 70 the first question which you
ask I state unhesitatine.y thai in rlv opin-
len nO legsl objection eElsis ~ ilr llslf-
anoe u minors hy stock companics where
1
an insurAble interest in the lie oi such
minors.
While some old authorities haVe drawn
| the line rather closely as 70 what c1usu-
| tutes al ln.urabie interest. the tendency ~
| al the later decisions ~ the courts has
been to cOnstrde very literally tle euecflo1
Il interest, aud 10 permit a polcy oi tlis
kind 20 be taken Olt u.s. ally person who
has n pecuniagv or other interest winch
1 d. 4 s...
cant % apply for such insurance. 4
refer 20 few authorities bearing up0n
| tais and questions siniizr'In principle.
| Lord ~. D0it. l2ih Mossact usstt- lia.
! Nay on Insurance. sections "a aud lpl Re-
serve Life Insurance Company ~. AceDe. ~
| Ps state 1885, LOOMS. sdillui-frator. Y..
| EsCie. tll Cray. 80 H0nneciCut NufuaI
! ilie Insurance Company vs.. ~.siier stfh
| United States supreme Court sa-- bliss on
| Life Insurance. section 30 % ai Stephens
vs. Warren l0l Mass 5es Chisholm VS.
! Life Insurance Company D. Missouri 1t
Any insurance 10 c3mranIes - TINS
| character which does not amDIut 10 q
wager policy, viii be held valid bv tbs
courts Mutual Benefit Association o.
! Michigan vs. HOyf. 18Th Mich. 8-3. % hara
and another vs. Carpenter. -3i Mica. go
Second -Chapicr Us Of Howell 3 sfatuie-.
! section one. provides, THAT any number oi
|
body corporate anu polite. for tie purpose
| OF securing 10 the famiiie. Or heirs of
| any member upon biz death, 3 certain sum
! Of money. 10 be- paid by s8cb corporation
| either out o! Us fund or by au assessment
| made upon The members ~ such corpora
| ton. or upon the members 81 the class in
| such corporations o. which SAID deceased
member beiongr This statute coniem-
plates the formation OF body corporate
/ f., Ae 10 f.. a.
| that the Legislature intended that persons
| becoming member Of such a corporation
| should be such A. are competent 90 bind
| themselves by contract.
| The associations organized under this
! statute as matter ~ fact. and probably
! such was the intention ~ the Legislature
in The enactment Of the lav. accumulate
no large fund. bat rely from time to time
upon Tic making q assessments f0T tue
] payment ~ death losses. Tie capital
stock 0f ihc company consists almost cr-
| clusivciy ln the good faith of fhe members
| Of the association. and tle power 90 enforce
| payment q Assessments made npen u.s.
| members. A minor can orly contract with
| reference 20 nrccssarIes. 80 - % ah"GIuseir
| bind bis estate. and other contracts. IS .
| general rule. can Lo avoided hV him af wiIl
| There is no rule ~ ian. so Ter as rnv know
| ledge Iiends. which holds thar iiie in
sursnce policy j. one of the necessities ~ q
| MINOR.
i is not probable that any cour.
would enforce the rsymcut - au
| assessment made bv 81 conrrrr
organized under this law eg- r-f
minor where he should defend against tho
claim = party iusurlng in ore 81 these as
| sOciaiioas ha. a rirht T. hsve other
| members 81 The association bound a. ir
binds himself 70 make payment = al a.
sessmen's which shall be regularly levied
| upon its members. iu other v8rtr ii .s y
/ contract ol mutually and reciprocity ari
it seems o. zoe that The c.ssf of Inranncc
! which f. 20 be carrlCi on bv these aserc
/ fi0ns should rscoFr ze such rule ard ile' 8
| departure from Ii. 90 p violation ~ "a. rplf
! snd intent ~ thf Az under which eI ~
| these companies srf arganize5.
| There is no doubt p mr mind lNaI II p
| company oresnI1ed suier tls r;afafe hsV-
ing insured srge number - persons who
| thereby tcrame members ~ SIZE nsr11 Iru.
| should become nsolrcnt taal c11r' ~
! equity wcr.l hBve ffr Ivrar - nrr.rf n
| reorlVer liT srrh arvsr 1s DH whose
aafhoifr would give l.m the rIehf ~ faof
/ only make s--ess .uents rnH1 l1nm ..rs IHI
! fo effDr7e trttEt proper r'tatrf.f ttr e..-
| lection ~ sntl sseesr rferIr Nair on ~
the osition thaf TrrH c1urse eeaf hr
Iurs1ed hr iurot ng the a.l - caHrI of
] chtuoerr. ref ! 1o unf frIrk frsf aeefe.-
/ fnerts could he fr forced ar, rei r.nr~ lf
| any sneh were fogrf t9 ps mem bers ~ s.rl
| ir-nlvenf orEsnizs'i ien.
If viii - u0tei Pr rer-
! ence % the frst Section ~ fts
sci that ii does noi sutrrsts sr arl cs-
ton far Insurance hr ore persor rrer fhe
I Iifs ~ en1fher tuf fhsf fhs irerfsurf is
/ ug.nn zee sfIiee u ~ fhs insure1. thei irts
( fo hs psi1 ~ Pc family ~ hfr ni rlef
( "a en-. ffr ~ the r.l-.f.eff su4 tr ae.aee