Armstrong v. Woodland Mutual Fire Insurance

Plaintiffs Donald and Esther Armstrong were buying their home in Byron Center, Kent county, Michigan, on land contract. On July 31, 1948, defendant Woodland Mutual Fire Insurance Company issued to them a fire insurance policy insuring the home for $3,500 and its contents for $1,500. As members of a mutual company plaintiffs were required to pay annual assessments. In this regard the company’s bylaws which were part of the insurance contract provided:

“7. Assessments. All assessments shall be ordered by the board of directors, and shall be levied by the secretary and collected by the treasurer…