The bill amends the Michigan Insurance Code of 1956, specifically sections 4621 and 4625, to update regulations regarding captive insurance companies. Key changes include the requirement for captive insurance companies to submit an annual report of their financial condition within 60 days after the end of their fiscal year, verified by two executive officers. Additionally, the bill mandates that these companies file audited financial statements prepared by an independent public accountant within five months after the fiscal year ends. The director of the insurance department is granted authority to prescribe the reporting format and may require interim reports as needed. The bill also introduces civil penalties for companies that fail to comply with reporting requirements.

Furthermore, the bill clarifies that certain provisions of the Insurance Code do not apply to captive insurance companies unless specifically referenced, and it allows the director to exempt certain companies from provisions deemed inappropriate for their risk profiles. The annual renewal fee structure is updated to require payment within 90 days after the fiscal year ends, with specific fee amounts based on the annual volume of insurance premiums. The bill also includes changes to the terminology, replacing "commissioner" with "director" in various sections, and ensures that the confidentiality provisions do not extend to final examination reports for certain captive insurance companies.

Statutes affected:
House Introduced Bill: 500.4621, 500.4625