SB-0898, As Passed Senate, May 30, 2018
March 8, 2018, Introduced by Senator HUNE and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 4621 (MCL 500.4621), as added by 2008 PA 29.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
4621. (1) A captive insurance company shall is not
be
required to make an annual report except as provided in this
chapter.
(2)
Annually, on or before March 1 of each year, a not later
than 60 days after the end of a captive insurance company's fiscal
year, the captive insurance company shall submit to the
commissioner
director a report of its financial condition, verified
by oath of 2 of its executive officers. A captive insurance company
may report using generally accepted accounting principles or, with
the
approval of the commissioner, director,
international financial
reporting standards or statutory accounting principles, with useful
or necessary modifications or adaptations required or approved or
accepted
by the commissioner director
for the type of insurance and
kinds
of insurers to be reported upon, on, and as supplemented by
additional
information required by the commissioner. director. The
commissioner
director may prescribe the form and manner in which
captive insurance companies shall report. Information submitted
pursuant
to under this section is confidential as provided in
section 4609.
(3)
The commissioner director may address inquiries to any a
captive insurer concerning the insurer's activities or conditions
or any other matter connected with the insurer's transactions. An
insurer
so addressed under this
subsection shall reply in writing
to
each inquiry from the commissioner director within 30 days of
after receipt of the inquiry.
(4)
The commissioner director may require interim reporting on
any
or all of the captive insurer's business, including any matter,
condition, or requirement regulated by this chapter. The
commissioner
director shall prescribe the format and content of the
interim report.
(5)
Each A captive insurer that fails to file a report
required by this section, or fails to reply within 30 days to an
inquiry
of the commissioner, director,
is subject to a civil
penalty of not less than $1,000.00 or more than $5,000.00 per
occurrence, and an additional $50.00 for every day that the captive
insurer fails to file the report or reply to the inquiry. In
addition,
each a captive insurer that fails to file a report, or
fails to make a satisfactory reply to an inquiry of the
commissioner
director concerning the captive insurer's affairs, is
subject to proceedings under section 4637.
(6) A pure captive insurance company may make written
application for filing the annual report on a fiscal year end that
is consistent with the parent company's fiscal year. The annual
report
shall must be on a form prescribed by the
commissioner.director.
(7) A branch captive insurance company shall file with the
commissioner
director 60 days after the fiscal year end a copy of
all reports and statements required to be filed under the laws of
the jurisdiction in which the alien captive insurance company is
formed, verified by oath by 2 of its executive officers. If the
commissioner
director is satisfied that the annual report filed by
the alien captive insurance company in its domiciliary jurisdiction
provides adequate information concerning the financial condition of
the
alien captive insurance company, the commissioner director may
waive the requirement for completion of the captive annual
statement.
(8) A captive insurance company shall annually submit to the
commissioner
director the opinion of a qualified actuary as to
whether the reserves and related actuarial items held in support of
the reserves are computed appropriately, are based on assumptions
that satisfy contractual provisions, are consistent with prior
reported amounts, and comply with applicable laws of this state.
The
actuarial opinion required by this section shall must be
submitted
in a form prescribed by the commissioner. director. For
purposes of this section, "qualified actuary" means a member of
either
the American academy Academy
of actuaries Actuaries or the
society
Society of actuaries Actuaries who also meets any
other
criteria
that the commissioner director
may establish by rule,
regulation, or order.