HB 5385 Michigan House · 2025-2026 Regular Session

Insurance: other; captive insurance company limited certificate of authority; modify. Amends sec. 4603 of 1956 PA 218 (MCL 500.4603).

HB 5385 amends Michigan's insurance code to modify rules for captive insurance companies - entities owned by businesses to insure their own risks. It restricts these companies from covering certain personal insurance types (like auto or homeowners) and requires them to insure only risks of their parent company, affiliated businesses, or specific groups (e.g., industrial insureds). Key provisions include mandating annual in-state board meetings, requiring $1 minimum per share of capital, and demanding detailed financial transparency for the commissioner’s review. The bill directly affects businesses seeking to establish captive insurers in Michigan, ensuring stricter operational and reporting standards.

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 · 7 edits · Mar 4, 2026

MODERATE

This bill amends Michigan's insurance code to update and clarify regulations for captive insurance companies, including their authority, operational requirements, and application processes. The changes modernize the language to reflect current practices while maintaining core restrictions on what types of risks these companies can insure.

Scope change

The bill applies to all captive insurance companies seeking to operate in Michigan, including new categories like association and industrial insured captives, while clarifying rules for special purpose captives.

REQUIREMENT

Updated the commissioner's title from 'commissioner' to 'commissioner director' throughout the text to reflect proper official designation.

Added new requirements for special purpose captive insurance companies to obtain commissioner approval before insuring risks beyond their parent company.

Added new provisions requiring foreign captive insurance companies to redomesticate into Michigan state law rather than merge or reorganize.

Reduced the application processing fee from $10,000 to $5,000 and added provisions for external examination costs.

Added detailed requirements for organizational documents including quorum rules, capital stock minimums, and director liability provisions.

Expanded the commissioner's review requirements to include evidence of loss prevention programs and character of incorporators.

TECHNICAL

Corrected grammatical errors and formatting inconsistencies in the original version, such as duplicate words and punctuation issues.

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 #72 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. Joseph Aragona

lower

1 primary · 1 co-sponsor