HB 5383 — Insurance: other; limited certificate of authority to transact insurance or reinsurance; modify. Amends sec. 4705 of 1956 PA 218 (MCL 500.4705).

HB-5383, As Passed House, March 4, 2026 HOUSE BILL NO.

Notwithstanding any other DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr 1 provision of this chapter, an SPFC may purchase reinsurance to cede the risks assumed under the SPFC contract as approved by the commissioner.director of the department.

(3) Before granting a limited certificate of authority for an DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr 1 SPFC, the commissioner director of the department shall require the applicant to submit organizational documents that contain all of the following:

DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr 1 (b) Acts or omissions not in good faith or that involve intentional misconduct or knowing violation of law.

DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr 1 (b) A plan of operation, consisting of a description of or statement of intent with respect to the contemplated insurance securitization, the SPFC contract, and related transactions , which shall that must include all of the following:

(c) Biographical affidavits in a form prescribed by the commissioner director of the department of all of the prospective SPFC's officers and directors, providing their legal names, any DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr 1 names under which they have or are conducting their affairs, and any affiliations with other persons, together with and other biographical information as the commissioner director of the department may request.

DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr 1 (e) Any other statements or documents required by the commissioner director of the department to evaluate and authorize the SPFC.

In addition, the commissioner DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr 1 director of the department may retain legal, financial, actuarial, and examination services from outside the office to examine and investigate the application, the reasonable cost of which may be charged against the applicant, or the commissioner director of the department may use internal resources to examine and investigate the application for a fee of $2,700.00, which is payable upon on the filing of the application.

(vi) For annual premiums equal to or greater than DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr 1 $40,000,000.00, but less than $55,000,000.00, the renewal fee shall be is $50,000.00.

DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr (12) A foreign captive, upon on approval of the commissioner, director of the department, may become an SPFC by complying with all of the provisions of this chapter.

Final Page DAW H03812'25_HB5383_INTR_1H03812'25_HB5383_APH_1 72md8ahgpkbr