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Governor Whitmer Signs Insurance Company Group Capital Calculation Bill Package
January 03, 2023
FOR IMMEDIATE RELEASE: January 3, 2023
(LANSING, MICH) Governor Gretchen Whitmer signed a bipartisan bill package into law last month to update Michigan’s holding company statute to ensure compliance with national accreditation standards and to provide the Michigan Department of Insurance and Financial Services (DIFS) with regulatory tools to ensure effective financial oversight of insurance companies based in Michigan.
“Governor Whitmer and the Legislature came together in a bipartisan way to make these needed changes to Michigan’s holding company statute,” said DIFS Director Anita Fox. “These changes will help DIFS protect policyholders through its regulatory oversight of insurance companies’ financial solvency, while ensuring Michigan remains an integral part of the state-based system of insurance regulation.”
The bill package adopts a group capital calculation for use in DIFS’ solvency monitoring of insurance companies. The calculation is intended to provide additional analytical information for use in assessing group risks and capital adequacy, complementing the Department’s current holding company analysis. The changes were required to ensure Michigan remained in compliance with accreditation standards set by the National Association of Insurance Commissioners, which allows for inter-state cooperation and reduces regulatory redundancies.
House Bill (HB) 6297 was sponsored by Rep. Andrew Beeler, R-Fort Gratiot; HB 6298 was sponsored by Rep. Ken Borton, R-Gaylord; HB 6299 was sponsored by Rep. Mike Harris, R-Clarkston; HB 6300 was sponsored by Rep. Sarah Anthony, D-Lansing; HB 6301 was sponsored by Rep. Richard Steenland, D-Roseville; HB 6302 was sponsored by Rep. Tim Sneller, D-Burton; and HB 6303 was sponsored by Rep. Julie Calley, R-Portland.
Consumers who have questions or disputes that cannot be directly resolved with their insurance company can contact DIFS Monday through Friday 8 a.m. to 5 p.m. at 877-999-6442 or file a complaint online at Michigan.gov/DIFScomplaints.
The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, Twitter, or LinkedIn.