HOUSE BILL No. 5675

 

January 31, 2008, Introduced by Rep. Virgil Smith and referred to the Committee on Insurance.

 

     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 additional financial statements of the

 

applicant insurer's parent company or personal financial statements

 

of controlling individuals of the applicant insurer's parent

 

company, all of the following apply:

 

     (a) The commissioner shall withhold the additional financial

 

statements from public inspection.

 

     (b) The additional financial statements are confidential.

 

     (c) The additional financial statements shall not be subject


 

to subpoena.

 

     (d) The additional financial statements shall not be divulged

 

to any person, except as provided in this section.

 

     (2) If assurances are provided that the additional financial

 

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

 

commissioner may disclose the additional 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.

 

     (c) In connection with an enforcement action brought pursuant

 

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.