The bill amends section 4731 of the Michigan Insurance Code of 1956, specifically addressing the operations of Special Purpose Financial Captives (SPFCs). It clarifies that certain material changes to an SPFC's plan of operation, such as the issuance of securities for securitization activities and changes in swap transaction counterparties, are not considered material changes if they meet specified criteria. Additionally, the bill updates the requirements for SPFCs to file audited financial statements and operational reports, specifying that these must be submitted to the director within certain timeframes and prepared by independent certified public accountants.

Furthermore, the bill modifies the language regarding the responsibilities of the SPFCs and the director, including the requirement for SPFCs to maintain records in a manner that allows for easy verification of their financial condition. It also introduces civil penalties for SPFCs that fail to comply with reporting requirements or inquiries from the director. The amendments aim to enhance regulatory oversight while ensuring that SPFCs can operate effectively within the legal framework.

Statutes affected:
House Introduced Bill: 500.4731