Insurance: other; sponsor of sponsored captive insurance company; modify. Amends sec. 4665 of 1956 PA 218 (MCL 500.4665).

This bill modifies Michigan's insurance code to clarify which entities are eligible to sponsor a sponsored captive insurance company. It specifies that sponsors must be licensed insurers, holding companies, reinsurers, or certain captive companies, while explicitly excluding risk retention groups from acting as sponsors or participants. The legislation also outlines specific requirements for securing business written by these captives, mandating that it be backed by a licensed insurer, state-approved reinsurance, or a secured trust fund. Additionally, the bill directs the insurance director to evaluate proposed sponsors based on their financial stability, experience, and business reputation.