Insurance: other; sponsored captive insurance companies; modify. Amends sec. 4667 of 1956 PA 218 (MCL 500.4667).

HB 5384 modifies Michigan's insurance code to allow more business entities to participate in sponsored captive insurance companies without requiring them to be shareholders or affiliates. The bill expands eligibility to include associations, corporations, LLCs, partnerships, and trusts that use these specialized insurers to cover their own risks or related businesses' risks. It removes the previous requirement that participants must own shares in the captive company or be affiliated with it. This change directly affects businesses seeking to self-insure through captive structures, making it easier to establish such arrangements under Michigan law. The bill does not alter the core rule that captives must primarily insure the participant's own risks or approved affiliates' risks.