Michigan Compiled Laws 218-1956-47 Chapter 47 Special Purpose Financial Captives (500.4701...500.4747)

• Section 500.4701 Definitions.
  As used in this chapter: (a) "Affiliated company" means a company in the same corporate system as a parent, by virtue of common ownership,...
• Section 500.4703 Conflict Between Provision Of Act And Provision Of Chapter; Chapter As Controlling; Sections Applicable To Spfcs; Exemption.
  (1) No provisions of this act, other than those specifically referenced in this chapter, apply to an SPFC, and those provisions apply only as...
• Section 500.4705 Limited 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.
  (1) A captive insurance company, a captive LLC, or a company otherwise qualified as an authorized insurer may apply to the commissioner for a...
• Section 500.4707 Spfc; 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.
  (1) An SPFC may be established as a stock corporation, limited liability company, mutual, partnership, or other form of organization approved by the commissioner....
• Section 500.4709 Minimum Initial Capitalization; Additional Capitalization; Maintenance Of Deposits.
  (1) An SPFC initially shall possess and after that maintain minimum capitalization of not less than $250,000.00. All of the minimum initial capitalization shall...
• Section 500.4711 Spfc; 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.
  (1) An SPFC may insure or reinsure only the risks insured or reinsured by a counterparty. (2) An SPFC shall not issue a contract...
• Section 500.4713 Protected Cells; Creation And Use By Spfc; Written Approval Of Commissioner; Possession Of Minimum Capitalization; Fraudulent Purpose Not Inferred.
  (1) This section and section 4715 provide a basis for the creation and use of protected cells by an SPFC. If a conflict occurs...
• Section 500.4715 Protected 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.
  (1) The creation of a protected cell does not create, with respect to that protected cell, a legal person separate from the SPFC. (2)...
• Section 500.4717 Issuance Of Spfc Securities.
  (1) An SPFC may issue securities, including SPFC securities and preferred securities, surplus notes, and other forms of financial instruments, subject to and in...
• Section 500.4719 Asset Management Agreements.
  An SPFC may enter into swap agreements, or other forms of asset management agreements, including guaranteed investment contracts, or other transactions that have the...
• Section 500.4721 Spfc 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.
  (1) An SPFC, at any given time, may enter into and effectuate an SPFC contract with a counterparty, provided that the SPFC contract meets...
• Section 500.4723 Insurance Securitization; Not Considered As Insurance Producers Or Brokers.
  SPFC securities and preferred securities issued pursuant to an insurance securitization are not, and shall not be considered to be, insurance or reinsurance contracts....
• Section 500.4725 Spfc; Duty To Ensure Contracts Fulfill Certain Requirements.
  In fulfilling its function, the SPFC shall adhere to the following and, to the extent of its powers, shall ensure that contracts obligating other...
• Section 500.4727 Creation Of Trust To Hold Assets Of Spfc.
  (1) Assets of the SPFC held in trust to secure obligations under the SPFC contract shall at all times be held in cash and...
• Section 500.4729 Declaration And Payment Of Dividends Prohibited; Exception; Limitation; Sufficiency Of Assets; Provisions.
  (1) An SPFC shall not declare or pay dividends in any form to its owners other than in accordance with the insurance securitization transaction...
• Section 500.4731 Plan 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.
  (1) An SPFC may make the following material changes to its plan of operation pursuant to section 4705(6)(b), whether or not through an SPFC...
• Section 500.4732 Activities Requiring Notice To Commissioner.
  An SPFC shall not enter into any of the following transactions or engage in any of the following activities unless the SPFC has notified...
• Section 500.4733 Captive Insurance Company Examination; Expenses And Charges; Payment; Fee.
  (1) The expenses and charges of a captive insurance company examination shall be paid to the state by the captive insurance company or companies...
• Section 500.4734 Confidentiality Requirements; Exception.
  (1) Information and testimony submitted or furnished to the office pursuant to this chapter, examination reports, preliminary examination reports or results, and the office's...
• Section 500.4735 Cessation Of Business; Suspension Or Revocation Of Limited Certificate Of Authority; Violations; Penalties; Notice.
  (1) At the cessation of business of an SPFC following termination or cancellation of an SPFC contract and the redemption of any related SPFC...
• Section 500.4741 Administrative Supervision, Conservation, Rehabilitation, Receivership, And Liquidation Of Insurers.
  (1) Except as otherwise provided in this section, the terms and conditions under chapter 81 pertaining to administrative supervision, conservation, rehabilitation, receivership, and liquidation...
• Section 500.4745 Contested Case Brought By Third Party; Suspension, Revocation, Or Modification Of Limited Certificate Of Authority.
  (1) A contested case brought by a third party based on a decision of the commissioner pursuant to this chapter is governed by applicable...
• Section 500.4747 Issuance Of Regulations; Employment Of Legal Counsel.
  (1) The commissioner may issue regulations necessary to effectuate the purposes of this chapter. Regulations issued pursuant to this section do not affect an...

Last modified: October 10, 2016