The 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 the need for organizational documents, management meetings, and maintaining a principal place of business in Michigan. It also specifies the documentation required for insurance securitization transactions and the conditions under which the SPFC can operate.

Additionally, the bill revises the fee structure for SPFC applications and annual renewals, reducing the initial application fee from $10,000 to $5,000 and establishing a tiered renewal fee system based on the annual volume of insurance premiums. The amendments also clarify the responsibilities of the SPFC in terms of financial reporting and compliance with state regulations. Overall, the bill aims to streamline the process for SPFCs while ensuring adequate oversight and compliance with Michigan's insurance laws.

Statutes affected:
House Introduced Bill: 500.4705