INSURER'S QUALIFIED ASSETS                                                                      H.B. 5148:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 5148 (as reported without amendment)

Sponsor:  Representative Marcia Hovey-Wright

House Committee:  Insurance

Senate Committee:  Insurance

CONTENT

The bill would amend the Insurance Code to include preferred stock in companies organized under the laws of Canada, or a province or territory of Canada, as assets that are considered qualified assets for the purpose of an insurer's minimum asset requirements. 

The Code requires each domestic insurer to maintain a certain amount of assets in cash or qualified assets.  Qualified assets include preferred stock of any company organized under the laws of the United States, a state of the United States, or the District of Columbia, provided they meet certain dividend requirements.  The bill would include preferred stock in companies organized under the laws Canada, or a province or territory of Canada, meeting the same requirements.  

MCL 500.912 & 500.924                                                     Legislative Analyst:  Jeff Mann

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  3-5-14                                                   Fiscal Analyst:  Glenn Steffens

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.