The bill amends the Michigan Insurance Code of 1956, specifically sections 4621 and 4625, to update regulations governing captive insurance companies. Key changes include the requirement for captive insurance companies to file audited financial statements with the director within five months after the end of their fiscal year, and the introduction of a civil penalty structure for companies that fail to file required reports or respond to inquiries from the director. Additionally, the bill clarifies that the director may exempt certain captive insurance companies from specific provisions of the chapter and outlines the annual renewal fee structure based on the volume of insurance premiums received.

The amendments also modify the language throughout the sections, replacing terms such as "commissioner" with "director" and adjusting deadlines for responses to inquiries. The bill emphasizes the confidentiality of submitted information and specifies that the director may require interim reporting on a captive insurer's business. Overall, these changes aim to enhance regulatory oversight and ensure compliance among captive insurance companies operating in Michigan.

Statutes affected:
House Introduced Bill: 500.4621, 500.4625
As Passed by the House: 500.4621, 500.4625