Bill
HB 6103
Expands who can participate in sponsored captives and what risks can be insured, allowing sponsors to participate, no shareholder link required, and broader insured exposures.
Status & timeline
- Bill: HB 6103 (amends section 4667 of 1956 PA 218 — MCL 500.4667).
- Introduced: November 13, 2024 (Rep. Brenda Carter, et al.).
- Passed House: December 12, 2024 (Roll Call #458 — Yeas 96, Nays 13); given immediate effect by the House.
- Referred: Committee on Government Operations (12/18/2024); later referral to Joint Committee on Human Services (1/22/2025).
- Part of a package of bills (HBs 6099–6106) addressing captive insurance and special purpose financial captives.
Purpose / intent
- To revise who may participate in and what risks may be insured through a sponsored captive insurance company under Michigan’s Insurance Code, clarifying participant and sponsor roles and expanding the permitted scope of insured risks.
Key provisions (changes made by the bill)
- Permitted participants: explicitly lists that an association, corporation, limited liability company, partnership, trust, or other business entity may be a participant in a sponsored captive insurance company.
- Sponsor participation: allows a sponsor to also be a participant in the sponsored captive.
- Ownership not required: states that a participant need not be a shareholder of, or an affiliate of, the sponsored captive insurance company.
- Expanded permitted insureds: changes the limit on what a participant may insure. Under prior law participants “shall insure only own risks” (unless director approval obtained). HB 6103 amends this to allow a participant to insure:
- its own risks, or
- the risks of its affiliates, or
- the risks of its controlled unaffiliated businesses,
unless the director (formerly “commissioner”) approves otherwise.
- Minor editorial update: replaces the title “commissioner” with “director” in the section.
Who is affected
- Sponsored captive insurance companies operating in Michigan.
- Current and prospective participants and sponsors (business entities that use sponsored captives).
- Affiliates and controlled unaffiliated businesses of participant entities.
- Department of Insurance and Financial Services (DIFS) — director retains discretion to approve exceptions or otherwise regulate.
Potential impact
- Broadens the scope of insured exposures that participants may place in a sponsored captive, potentially increasing flexibility for multiservice or multi-entity groups to centralize or allocate insurance risk within a sponsored captive structure.
- Permitting sponsors to also be participants and clarifying that participants need not be shareholders may lower administrative or ownership barriers to participation.
- Continued DIFS director oversight preserves regulatory discretion to approve or limit uses beyond the basic allowances.
Related notes
- HB 6103 is one of several coordinated bills (HBs 6099–6106) proposing broader revisions to Michigan’s captive insurance framework (e.g., sponsor qualifications, filing dates, fees, record location, and auditing requirements).
Compiled from official sources — confirm details with the bill’s official record.
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