State Rep. Ken Borton’s plan to update state oversight measures for Michigan insurance companies today was signed into law, a move he said would help the state protect insured Michiganders.
“Insurance can provide peace of mind and financial stability to Michigan residents,” said Borton, R-Gaylord. “Oversight of this industry — made stronger by our new bipartisan laws — helps protect the consumers who depend on their insurers in times of crisis.”
Borton and a bipartisan coalition of legislators spearheaded House Bills 6297-6303, which implement guidelines recommended by the National Association of Insurance Commissioners (NAIC). The laws will require most insurers that are part of an insurance holding company system to provide regulators in Michigan or an insurer’s home state with an insurer’s group capital calculation. According to the NAIC, the group capital calculation “includes information on potential risks to policyholders emanating from outside the insurance companies, as well as the location and sources of capital within the group.” The laws will also require many insurers to provide results from a liquidity stress test.
Borton was the lead sponsor of HB 6298 in the package. The governor approved all seven bills in the bipartisan plan.
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