Michigan Laws 500.4669 – Sponsored captive insurance companies; applicability of terms and conditions in chapter 48 pertaining to protected cell insurance company
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Terms Used In Michigan Laws 500.4669
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Captive insurance company: means a pure captive insurance company, association captive insurance company, sponsored captive insurance company, special purpose captive insurance company, or industrial insured captive insurance company authorized under this chapter. See Michigan Laws 500.4601
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Participant: means an entity as described in section 4667, and any affiliates of the entity, that are insured by a sponsored captive insurance company, if the recovery of the participant is limited through a participant contract to the assets of a protected cell. See Michigan Laws 500.4601
- Protected cell: means a segregated account established and maintained by a sponsored captive insurance company for 1 participant. See Michigan Laws 500.4601
- Sponsored captive insurance company: means a captive insurance company in which the minimum capital and retained earnings required by applicable law is provided by 1 or more sponsors, that is authorized under this chapter, that insures the risks of separate participants through the participant contract, and that segregates each participant's liability through 1 or more protected cells. See Michigan Laws 500.4601
(1) Except as otherwise provided in this chapter, the terms and conditions provided in chapter 48 relating to a protected cell insurance company apply in full to a sponsored captive insurance company.
(2) Except as otherwise provided, all of the following apply to a sponsored captive insurance company:
(a) A protected cell need not be established solely for the purpose of effecting insurance securitizations, but may be established for the purpose of isolating the expenses and claims of a sponsored captive insurance company participant.
(b) The sponsored captive insurance company shall attribute all insurance obligations, assets, and liabilities relating to a participant’s risks to the participant’s protected cell.
(c) Section 4805 does not apply.