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Michigan Legislature
Michigan Compiled Laws Complete Through PA 20 of 2019
House: Adjourned until Tuesday, June 18, 2019 1:30:00 PM
Senate: Adjourned until Tuesday, June 18, 2019 10:00:00 AM

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218-1956-47
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THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
CHAPTER 47
SPECIAL PURPOSE FINANCIAL CAPTIVES

DocumentTypeDescription
Section 500.4701SectionDefinitions.
Section 500.4703SectionConflict between provision of act and provision of chapter; chapter as controlling; sections applicable to SPFCs; exemption.
Section 500.4705SectionLimited certificate of authority to transact insurance or reinsurance; transaction of business by SPFC; limitation; requirements; submission of documents to commissioner; contents; liability of director; submission of documents to office of attorney general; evidence and documents required, considered, and reviewed by commissioner; additional filings; confidentiality; transaction of business; fees; limited certificate of authority granted after certain findings; renewal; foreign captive as SPFC.
Section 500.4707SectionSPFC; establishment; form of organization; documents; limitation; adoption of name; applicability of certain provisions in carrying out transactions; state residency; privileges and provisions applicable to limited liability company; corporate powers.
Section 500.4709SectionMinimum initial capitalization; additional capitalization; maintenance of deposits.
Section 500.4711SectionSPFC; insuring or reinsuring risks insured or reinsured by counterparty; contract for assumption of risk or indemnification of loss; related and incidental contracts; submission of actuarial opinion.
Section 500.4713SectionProtected cells; creation and use by SPFC; written approval of commissioner; possession of minimum capitalization; fraudulent purpose not inferred.
Section 500.4715SectionProtected cell; consideration as separate person; purposes; distinct name or designation; subject to orders of court; service of process; contract with third party advisor or manager; recourse by creditors; availability of assets; attachment of security interest to protected cell; identification of protected cell assets and liabilities; provisions in contracts or other documentation; income; crediting to or charging against protected cell; investment or reinvestment of amounts; annual report; notification of insolvency.
Section 500.4717SectionIssuance of SPFC securities.
Section 500.4719SectionAsset management agreements.
Section 500.4721SectionSPFC contracts; agreements with affiliated companies and third parties; contents of contract; withdrawal of assets or income from trust and transfer to SPFC; approval from counterparty.
Section 500.4723SectionInsurance securitization; not considered as insurance producers or brokers.
Section 500.4725SectionSPFC; duty to ensure contracts fulfill certain requirements.
Section 500.4727SectionCreation of trust to hold assets of SPFC.
Section 500.4729SectionDeclaration and payment of dividends prohibited; exception; limitation; sufficiency of assets; provisions.
Section 500.4731SectionPlan of operation; changes; filing of audited financial statements; inquiries by commissioner; filing of statement of operations; reports; preservation of books, records, documents, accounts, and vouchers; authority of securities commissioner.
Section 500.4732SectionActivities requiring notice to commissioner.
Section 500.4733SectionCaptive insurance company examination; expenses and charges; payment; fee.
Section 500.4734SectionConfidentiality requirements; exception.
Section 500.4735SectionCessation of business; suspension or revocation of limited certificate of authority; violations; penalties; notice.
Section 500.4741SectionAdministrative supervision, conservation, rehabilitation, receivership, and liquidation of insurers.
Section 500.4745SectionContested case brought by third party; suspension, revocation, or modification of limited certificate of authority.
Section 500.4747SectionIssuance of regulations; employment of legal counsel.
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