Insurance: other; definitions in the insurance code of 1956; revise. Amends sec. 4601 of 1956 PA 218 (MCL 500.4601).
What changed between versions
Added definition for 'Alien captive insurance company' to specify insurers formed under laws of countries other than the United States or its territories.
Added definition for 'Association captive insurance company' to describe companies that insure risks of member organizations and their affiliated companies.
Added definition for 'Branch captive insurance company' to define alien captive insurers authorized to conduct business in Michigan through a local business unit.
Added definition for 'Controlled unaffiliated business' to specify companies not in the corporate system of a parent but with contractual relationships to affiliated companies.
Added definition for 'Sponsored captive insurance company' to describe captive insurers where capital is provided by one or more sponsors with segregated liability through protected cells.
Added definition for 'Protected cell' to establish segregated accounts for individual participants in sponsored captive insurance companies.
Modified definition of 'Captive insurance company' to clarify that branch captive insurance companies must be pure captive insurance companies unless the director permits otherwise.
Added definition for 'Participant' to identify entities insured by sponsored captive insurance companies with recovery limited to protected cell assets.
Added definition for 'Sponsor' to specify entities approved by the director to provide capital and retained earnings for sponsored captive insurance companies.
