The bill amends the Michigan Insurance Code of 1956, specifically section 4601, to clarify and expand definitions related to captive insurance companies. Key definitions include "affiliated company," "alien captive insurance company," "association captive insurance company," and "industrial insured captive insurance company," among others. The bill introduces new legal language to define various types of captive insurance companies and their operations, such as "branch captive insurance company" and "sponsored captive insurance company," while also detailing the roles of participants and sponsors in these entities.

Additionally, the bill modifies existing definitions to enhance clarity, such as changing "participant" to "participants" and specifying that the recovery of participants is limited to the assets of a protected cell. It also updates the definition of "sponsor" to include any entity approved by the director to provide capital for a sponsored captive insurance company. Overall, the amendments aim to modernize the regulatory framework for captive insurance in Michigan, ensuring that it aligns with current industry practices and standards.

Statutes affected:
House Introduced Bill: 500.4601