HB-5675, As Passed House, March 18, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5675

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

(MCL 500.100 to 500.8302) by adding section 404a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 404a. (1) If a domestic, foreign, or alien insurer is

required by the commissioner during the course of application for

admission to furnish financial statements of the applicant

insurer's parent corporation, which corporation is a family trust

or closely held corporation with the sole specific purpose of

holding the assets of the family's personal wealth, or to furnish

personal financial statements of controlling individuals of the

applicant insurer, all of the following apply:

(a) The commissioner shall withhold the financial statements

from public inspection.

(b) The financial statements are to be held confidential.

(d) The financial statements shall not be divulged to any

person, except as provided in this section.

(2) If assurances are provided that the financial statements

under subsection (1) will be kept confidential, the commissioner

may disclose the financial statements for good cause as follows:

(a) To the governor or the attorney general.

(b) To any relevant regulatory agency as it relates to the

insurer, including regulatory agencies of other states or the

federal government.

to this or another applicable act.

(d) To law enforcement officials.

(e) To persons authorized by the Ingham county circuit court

to receive the information.

(f) To persons entitled to receive such information in order

to discharge duties specifically provided for in this act.

(3) The confidentiality requirements of subsection (1) do not

apply in any proceeding or action brought against or by the insurer

under this act or any other applicable act of this state, any other

state, or the United States.