This bill amends the Michigan Insurance Code of 1956, specifically section 4665, to update the requirements for sponsors of sponsored captive insurance companies. The bill stipulates that a sponsor must be approved by the director, who will assess the sponsor's safety, reliability, and public confidence. The evaluation will consider various factors, including the sponsor's type and structure, financial operations experience, financial stability, business reputation, and any other relevant factors.

Additionally, the bill clarifies that a risk retention group cannot be a sponsor or participant of a sponsored captive insurance company. It removes previous language regarding the business written by a sponsored captive insurance company and the conditions under which it must operate, streamlining the requirements for compliance. Overall, the amendments aim to enhance regulatory oversight and ensure the integrity of sponsored captive insurance companies in Michigan.

Statutes affected:
Substitute (H-1): 500.4665
House Introduced Bill: 500.4665
As Passed by the House: 500.4665