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 counterparties for swap transactions, 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, including the necessity for these documents to be prepared by independent certified public accountants and submitted to the director within specified timeframes.

Furthermore, the bill modifies the language regarding the responsibilities of the SPFCs and the director, including the requirement for SPFCs to maintain records in Michigan or approved locations, and to respond to inquiries from the director within 30 days. It also establishes penalties for non-compliance with reporting requirements and emphasizes the importance of preserving original records for examination. Overall, the amendments aim to enhance regulatory clarity and compliance for SPFCs operating under Michigan law.

Statutes affected:
House Introduced Bill: 500.4731
As Passed by the House: 500.4731