MI SB0825

Establishes a 10% cap on loss exposure for any single risk or hazard for most insurers transacting business in Michigan, with reinsured portions excluded from the calculation.

Allows title insurers with a certificate of authority issued before the amendment's effective date to expose themselves to up to 50% of paid-up capital and surplus on a single title insurance risk.

Requires new title insurers (obtaining authority after the effective date) to meet three conditions to exceed the 10% cap: maintain an A- or better financial rating, have 5+ years of operating history with positive net income in 3 of the last 5 years, and hold capital exceeding 2 times Michigan's minimum requirements.

Permits qualified title insurers meeting the conditions in subsection (3) to expose themselves to up to 50% of paid-up capital and surplus on a single risk, with reinsured portions excluded.

Allows the commissioner to waive the 10% limitation for title insurers on a case-by-case basis for good cause, provided net retained liability does not exceed 50% of the insurer's paid-up capital and surplus.