The bill amends the Michigan Insurance Code of 1956, specifically section 4603, to update the regulatory framework for captive insurance companies. Key changes include the replacement of the term "commissioner" with "director" throughout the section, which reflects a shift in the oversight authority. The bill specifies that captive insurance companies may apply for a limited certificate of authority to conduct various types of insurance, excluding first-dollar worker's compensation, long-term care, critical care, personal automobile, and homeowners insurance. It also outlines the requirements for captive insurance companies, including maintaining a principal place of business in Michigan, submitting organizational documents for review, and ensuring that financial records are available for inspection.

Additionally, the bill introduces new provisions regarding the liability of directors, the examination of organizational documents by the attorney general, and the confidentiality of submitted information. It reduces the application processing fee from $10,000 to $5,000 and establishes that a limited certificate of authority will be valid for 90 days after the fiscal year ends, contingent upon the company remaining in good standing. The bill aims to streamline the process for captive insurance companies while ensuring compliance with state regulations.

Statutes affected:
House Introduced Bill: 500.4603