MI SB0898

Captive insurance companies must submit annual financial reports within 60 days of fiscal year end, verified by oath of 2 executive officers, using generally accepted accounting principles or other approved standards.

Director may require interim reports on captive insurer business and may address written inquiries to insurers, which must be answered within 30 days.

Captive insurers that fail to file required reports or respond to director inquiries face civil penalties of $1,000 to $5,000 per occurrence plus $50 per day of non-compliance.

Pure captive insurance companies may apply to file annual reports using their parent company's fiscal year end.

Branch captive insurance companies must file copies of reports required in their home jurisdiction, which may be waived if the director determines the foreign reports provide adequate financial information.

Captive insurance companies must annually submit an opinion from a qualified actuary confirming that reserves and related items are computed appropriately and comply with state law.