Insurance: other; special purpose financial captive plan of operation; modify. Amends sec. 4731 of 1956 PA 218 (MCL 500.4731).

This bill modifies Michigan's insurance code to update the rules for Special Purpose Financial Captives, which are companies that pool risk for specific financial products. It clarifies that issuing new securities to continue securitization activities or swapping out a counterparty for one with a similar or higher credit rating does not count as a major change to the company's plan. The legislation also sets specific deadlines for filing audited financial statements and statements of operations, requires captive insurers to respond to regulator inquiries within 30 days, and establishes a penalty of up to $5,000 plus daily fines for failing to meet these reporting requirements.