HB 5382 Michigan House · 2025-2026 Regular Session

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

HB 5382 modifies Michigan's insurance code to clarify regulations for Special Purpose Financial Captives (SPFCs), which are specialized insurance entities used by companies to self-insure risks. The bill specifies that certain operational changes - like issuing new securities for existing financing arrangements or replacing swap counterparties with similarly rated firms - do not require approval. It also mandates annual financial reporting (including audited statements and operations summaries), requires SPFCs to respond to commissioner inquiries within 30 days, and imposes civil penalties of $1,000-$5,000 per violation for non-compliance. These changes directly affect SPFCs operating under Michigan law, ensuring clearer reporting standards and oversight while maintaining existing commissioner authority.

Bill status passed both 4 of 5 stages cleared

Introduction

Dec 2025

Committee Review

Mar 2026

House Passage

Mar 2026

Senate Passage

Mar 2026

Governor

Introduced Dec 16, 2025 Last action Mar 10, 2026

Maddy AI version diff · 1 comparison

What changed between versions

House Introduced Bill → As Passed by the House · 5 edits · Mar 4, 2026

MODERATE

This bill amends Michigan's insurance code to clarify how Special Purpose Financial Companies (SPFCs) can make changes to their operations without triggering regulatory review. The changes streamline reporting requirements and clarify rules around securities issuance, counterparty swaps, and financial statement filing to reduce administrative burdens while maintaining oversight.

Scope change

The bill applies to SPFCs operating under Michigan's insurance code and modifies their operational flexibility and reporting obligations.

REQUIREMENT

Clarified that issuing new securities to continue securitization activities is not considered a material change requiring regulatory approval, provided it was included in the initial plan.

Updated rules for swapping counterparty partners in insurance securitization transactions, requiring the new partner to have equal or better credit ratings from two major rating agencies.

Added provisions clarifying that SPFCs authorized as insurers must file annual reports under existing sections 438 and 438a, and must maintain records in Michigan or obtain approval to keep them elsewhere.

TIMELINE

Standardized financial reporting deadlines, requiring SPFCs to file audited financial statements within 5 months after their fiscal year ends.

TECHNICAL

Corrected numerous grammatical errors, formatting inconsistencies, and redundant language throughout the original text to improve clarity and readability.

Floor votes · House Mar 4, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 10, 2026

Committee

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION

upper

Mar 10, 2026

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

Mar 4, 2026

Lower · Passed

passed; given immediate effect Roll Call #69 Yeas 104 Nays 2 Excused 0 Not Voting 4

lower

Feb 4, 2026

Committee

referred to second reading

lower

Feb 4, 2026

Lower · Passed

reported with recommendation without amendment

lower

Dec 16, 2025

Committee

referred to Committee on Insurance

lower

Dec 16, 2025

Introduced

introduced by Representative Rep. Stephanie Young

lower

1 primary · 1 co-sponsor