This bill amends the Michigan Insurance Code of 1956, specifically section 4705, to update the regulatory framework for Special Purpose Financial Captives (SPFCs). Key changes include the replacement of the term "commissioner" with "director of the department" throughout the section, which reflects a shift in oversight authority. The bill outlines the requirements for SPFCs to obtain a limited certificate of authority to conduct insurance or reinsurance business, including maintaining a principal place of business in Michigan, holding annual management meetings, and submitting various organizational documents for review by the attorney general.

Additionally, the bill modifies the fee structure for SPFCs, reducing the nonrefundable application fee from $10,000 to $5,000 and establishing a tiered annual renewal fee based on the volume of insurance premiums received. The renewal fee structure is designed to scale with the size of the SPFC's operations, with specific amounts set for different premium thresholds. The bill also emphasizes the confidentiality of information submitted under this section and outlines the conditions under which a foreign captive can become an SPFC in Michigan. Overall, these amendments aim to streamline the regulatory process and enhance the operational framework for SPFCs in the state.

Statutes affected:
House Introduced Bill: 500.4705
As Passed by the House: 500.4705