MI HB6303

Allows domestic insurers to invest in subsidiaries up to the lesser of 10% of assets or 50% of policyholders' surplus, provided the insurer maintains reasonable surplus relative to outstanding liabilities and financial needs.

Excludes investments in domestic or foreign insurance subsidiaries, licensed third-party administrators, and domestic health maintenance organizations from the subsidiary investment calculation limits.

Permits the director to approve investments exceeding the prescribed limits if the insurer's policyholders' surplus remains reasonable and adequate after the investment.

Grandfathers existing subsidiary investments held before the effective date for insurers writing only Michigan premiums or nonprofit insurers prohibited from converting to mutual holding companies, though new subsidiary investments by such nonprofits exceeding thresholds require director approval.

Act becomes effective only if six companion bills (HB 6297, 6298, 6299, 6300, 6301, and 6302) are enacted into law.