Bill > HB5380

This bill modifies the requirements for who can be a sponsor of a sponsored captive insurance company, which is a type of insurance company that allows for segregated accounts, or "protected cells," for different participants. Previously, a sponsor had to be a specific type of authorized insurer, holding company, reinsurer, or another captive insurance company. Now, under this bill, a sponsor must be approved by the director, who will assess their safety, reliability, and public confidence by considering their type and structure, experience in financial operations, financial stability, business reputation, and any other relevant factors. The bill also clarifies that a risk retention group, which is a type of liability insurance company formed by its policyholders, cannot be a sponsor or participant in a sponsored captive insurance company.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5380