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MI HB6102

MI HB6102
Insurance: other; limited certificate of authority to transact insurance or reinsurance; modify. Amends sec. 4705 of 1956 PA 218 (MCL 500.4705).


summary

Introduced
11/13/2024
In Committee
12/18/2024
Crossed Over
12/12/2024
Passed
Dead
12/31/2024

Introduced Session

102nd Legislature

Bill Summary

A bill to amend 1956 PA 218, entitled"The insurance code of 1956,"by amending section 4705 (MCL 500.4705), as added by 2008 PA 29.

AI Summary

This bill amends Section 4705 of the Insurance Code of 1956 to modify the requirements for obtaining a limited certificate of authority to transact insurance or reinsurance business as a Special Purpose Financial Captive (SPFC) in Michigan. The key changes include: - Replacing the term "commissioner" with "director of the department" throughout the section. - Clarifying requirements for obtaining a limited certificate of authority, such as providing documentation of the insurance securitization, meeting capitalization and operational requirements, and submitting organizational documents for review. - Modifying the application and annual renewal fees for SPFCs, including reduced initial application fees and a new tiered structure for annual renewal fees based on the SPFC's premium volume. - Allowing a foreign captive to become an SPFC in Michigan by complying with the requirements in this chapter, without the need for additional reorganization steps. Overall, the bill aims to update and streamline the process for SPFCs to obtain and maintain their limited certificate of authority in the state.

Committee Categories

Business and Industry, Government Affairs

Sponsors (14)

Last Action

Referred To Committee On Government Operations (on 12/18/2024)

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