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 by the director.

Additionally, the bill introduces new provisions regarding the organizational documents of captive insurance companies, including requirements for the number of directors, the value of capital stock, and the need for a plan of operation. It also reduces the application processing fee from $10,000 to $5,000 and allows for the retention of external services for application examination. The bill emphasizes the confidentiality of submitted information and establishes that a foreign captive insurance company can become a Michigan captive by meeting state requirements without needing to undergo a reorganization. Overall, these amendments aim to streamline the process for captive insurance companies while ensuring regulatory compliance and oversight.

Statutes affected:
House Introduced Bill: 500.4603
As Passed by the House: 500.4603