MI SB0043

Establishes alternative minimum cash reserve option for pooled plans operating 5 or more years, allowing reserves equal to 2.5% of preceding year's claims plus designated incurred but not reported claims reserve instead of standard 25-35% requirement.

Prohibits pooled plans electing the alternative reserve option from satisfying any portion of reserve requirements through letters of credit, while maintaining letter of credit flexibility for standard reserve plans.

Requires pooled plans to file audited annual financial statements within 90 days and unaudited quarterly statements within 60 days, with actuarial opinions on claim reserves from approved actuaries or those with 5+ years experience.

Empowers the commissioner to order pooled plans to collect proportionate contributions from members to restore insufficient reserves and to suspend or dissolve plans engaged in fraudulent practices, hazardous operations, or failure to meet contractual obligations.

Effective date is 90 days after enactment (September 13, 2017).