Insurance: insurers; single-risk limit for title insurance; eliminate. Amends sec. 640 of 1956 PA 218 (MCL 500.640).

This bill modifies Michigan's insurance code to remove the 10% single-risk limit that currently applies to title insurance companies. Instead, it establishes a new rule allowing title insurers to take on risks up to 50% of their capital and surplus, provided they meet specific financial and operational criteria. To qualify for the higher limit, an insurer must have a strong financial rating, at least five years of licensing history, and capital twice the state's minimum requirement. The legislation also permits the state insurance commissioner to grant exceptions to the 10% rule on a case-by-case basis if the retained liability stays below 50%. Ultimately, the change directly affects title insurance providers by relaxing restrictions on how much risk they can assume for a single property transaction.