MI HB5380

Expands eligibility requirements for sponsors of sponsored captive insurance companies by removing the previous limitation to only authorized insurers, insurance holding companies, reinsurers, or captive insurance companies.

Requires the Director of Insurance to approve all proposed sponsors based on a determination that they are "safe, reliable, and entitled to public confidence."

Establishes five evaluation criteria for proposed sponsors: type and structure, experience in financial operations, financial stability and strength, business reputation, and other factors the director considers relevant.

Maintains the prohibition on risk retention groups from serving as either a sponsor or participant of a sponsored captive insurance company.

Removes previous requirements that business written by sponsored captive insurance companies must be fronted by authorized insurers, reinsured by approved reinsurers, or secured by trust funds.