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HB 6100

Insurance: other; definitions in the insurance code of 1956; revise. Amends sec. 4601 of 1956 PA 218 (MCL 500.4601).

2023-2024 Regular Session Introduced by Felicia Brabec and 13 co-sponsors

HB 6100 clarifies that 'participant' in the Insurance Code’s sponsored captive definitions may apply to multiple entities, replacing singular terms with plural where needed.

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS
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Bill Summary · HB 6100

Summary — HB 6100 (amendment to MCL 500.4601)

Status: Referred to Committee on Government Operations (subsequently referenced to joint committee on Human Services); introduced November 13, 2024. Sponsor: Rep. Helena Scott. Amends: section 4601 of the Insurance Code of 1956 (MCL 500.4601).

Purpose

HB 6100 makes a targeted, technical change to the Insurance Code’s definitions for captive insurance law — specifically the terms “participant” and “participant contract” as they relate to sponsored captive insurance companies. The stated intent is to clarify that those definitions may apply to multiple entities.

Key provisions

  • Amends the definitions in MCL 500.4601:
    • Replaces singular uses of the term “participant” with the plural “participants” where applicable.
    • Explicitly provides that the definition of “participant” can apply to multiple entities.
  • Leaves other related definitions (for example, “protected cell,” which is defined as a segregated account established for one participant) otherwise intact in the text provided.

Effected entities and practical impact

  • Primary subjects: sponsored captive insurance companies, their participants (insured entities), and counterparties that rely on sponsored captive structures.
  • Secondary subjects: captive managers, sponsor entities, and the Department of Insurance and Financial Services (DIFS), which oversees captive regulation and approvals.
  • Practical effect: The change appears to be a definitional/clarifying amendment that permits the statutory language to encompass cases where more than one legal entity is treated as a participant under a participant contract. This may reduce ambiguity in structuring sponsored captive arrangements and in regulatory reviews, but does not itself change capital, solvency, or protected-cell mechanics unless paired with other statutory changes.

Statutory reference

  • Section amended: Sec. 4601, 1956 PA 218 — Insurance Code of 1956 (MCL 500.4601).

Legislative timeline / procedural status

  • Introduced: November 13, 2024 (House).
  • Passed by the House: recorded votes Dec. 12, 2024 (passed with immediate effect as reported).
  • Referred: to Committee on Government Operations (and later referenced to a joint committee on Human Services per later entries).
  • Next steps: committee consideration in the Senate/other committees as applicable; if enacted by both chambers and signed, it will amend the Insurance Code as noted.

Notes

  • HB 6100 is one bill in a package (HBs 6099–6106) addressing various captive insurance matters; several companion bills propose substantive regulatory and fee changes. HB 6100 itself is narrowly focused on definitional language.

Compiled from official sources — confirm details with the bill’s official record.

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