Sec. 4623.
(1) A sponsored captive insurance company may discount its loss and loss adjustment expense reserves at the lesser of treasury rates or the captive insurance company's actual rate of return applied to the applicable payments projected through the use of the expected payment pattern associated with the reserves.
(2) The commissioner may disallow the discounting of reserves if a sponsored captive insurance company violates a provision of this act.
History: Add. 2008, Act 29, Imd. Eff. Mar. 13, 2008 Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
218-1956-46 - Chapter 46 Captive Insurance Companies (500.4601...500.4673)
Section 500.4601 - Definitions.
Section 500.4607 - Adoption of Name by Captive Insurance Company.
Section 500.4609 - Confidentiality Requirements.
Section 500.4621 - Reports and Inquiries.
Section 500.4623 - Sponsored Captive Insurance Company; Discount of Reserves.
Section 500.4641 - Reinsurance on Risks Ceded by Other Insurer.
Section 500.4643 - Rating Organization; Joining Not Required.
Section 500.4667 - Sponsored Captive Insurance Companies; Business Entities as Participants.