a foreign insurance
company as a condition of its doing business therein.[329]

A stipulation that policies of hail insurance shall take effect and
become binding twenty-four hours after the hour in which an application
is taken and further requiring notice by telegram of rejection of an
application is not invalid.[330] Nor is any arbitrary restraint upon
their liberty of contract imposed upon surety companies by a statute
providing that any bond executed after its enactment for the faithful
performance of a building contract shall inure to the benefit of
materialmen and laborers, notwithstanding any provision of the bond to
the contrary.[331] Likewise constitutional is a law requiring that a
policy, indemnifying a motor vehicle owner against liability to persons
injured through negligent operation, shall provide that bankruptcy of
the insured shall not release the insurer from liability to an injured
person.[332]

If fire insurance companies, in case of total loss, are compelled to pay
the amount for which the property was insured, less depreciation between
the time of issuing the policy and the time of the loss, such insurers
are not deprived of their property without due process of law.[333]
Moreover, even though it has its attorney-in-fact located in Illinois,
signs all its contracts there, and forwards therefrom all checks in
payment of losses, a reciprocal insurance association, if it covers real
property located in New York, may be compelled to comply with New York
regulations which require maintenance of an office in that State and the
countersigning of policies by an agent resident therein.[334] Also, to
discourage monopolies and to encourage competition in the matter of
rates, a State constitutionally may impose on all fire insurance
companies connected with a tariff association fixing rates a liability
or penalty to be collected by the insured of 25% in excess of actual
loss or damage, stipulations in the insurance contract to the contrary
notwithstanding.[335]

A State statute by which a life insurance company, if it fails to pay
upon demand the amount due under a policy after death of the insured, is
made liable in addition for fixed damages, reasonable in amount, and for
a reasonable attorney's fee is not unconstitutional even though payment
is resisted in good faith and upon reasonable grounds.[336] It is also
proper by law to cut off a defense by a life insurance company based on
false and fraudulent