Bill > HB5782

This bill allows domestic credit unions, which are financial institutions owned by their members, to obtain insurance for their members' share and deposit accounts from either a federal agency or a "qualified private insurance organization," which is defined as an insurance carrier licensed in the state and authorized by the director to provide primary share or deposit insurance up to the same amount as federal insurance. The bill also clarifies that if a credit union is denied federal insurance or is given notice of termination, it has options including dissolution, merging, or applying to the director for more time to secure insurance, and the director can grant extensions if the credit union is making a substantial effort to meet the insurer's requirements. Furthermore, credit unions can contract with licensed insurance carriers for coverage exceeding federal or qualified private insurance limits, and these carriers can apply to the director to become authorized qualified private insurance organizations, with the director having the power to deny or revoke this authorization if the carrier lacks the necessary resources, governance, or management.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2026-HB-5782