Sec. 4711.
(1) An SPFC may insure or reinsure only the risks insured or reinsured by a counterparty.
(2) An SPFC shall not issue a contract for assumption of risk or indemnification of loss other than an SPFC contract. However, the SPFC may cede risks assumed through an SPFC contract to third party reinsurers through the purchase of reinsurance or retrocession protection.
(3) An SPFC may enter into contracts and conduct other commercial activities related or incidental to and necessary to fulfill the purposes of the SPFC contract, insurance securitization, and this chapter. Those activities may include, but are not limited to: entering into SPFC contracts; issuing securities of the SPFC in accordance with applicable securities law; complying with the terms of these contracts or securities; entering into trust, swap, tax, administration, reimbursement, or fiscal agent transactions; or complying with trust indenture, reinsurance, or retrocession, and other agreements necessary or incidental to effectuate an insurance securitization in compliance with this chapter or the plan of operation submitted to the commissioner.
(4) An SPFC shall annually submit to the commissioner the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the reserves are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of this state. The actuarial opinion required by this section shall be submitted in a form prescribed by the commissioner. For purposes of this section, "qualified actuary" means a member of either the American academy of actuaries or the society of actuaries who also meets any other criteria that the commissioner may establish by rule, regulation, or order.
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)
218-1956-47 - Chapter 47 Special Purpose Financial Captives (500.4701...500.4747)
Section 500.4701 - Definitions.
Section 500.4717 - Issuance of Spfc Securities.
Section 500.4719 - Asset Management Agreements.
Section 500.4723 - Insurance Securitization; Not Considered as Insurance Producers or Brokers.
Section 500.4725 - Spfc; Duty to Ensure Contracts Fulfill Certain Requirements.
Section 500.4727 - Creation of Trust to Hold Assets of Spfc.
Section 500.4732 - Activities Requiring Notice to Commissioner.
Section 500.4733 - Captive Insurance Company Examination; Expenses and Charges; Payment; Fee.
Section 500.4734 - Confidentiality Requirements; Exception.
Section 500.4747 - Issuance of Regulations; Employment of Legal Counsel.