INSURANCE: SINGLE RISK/HAZARD LIMIT S.B. 825:
COMMITTEE SUMMARY
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Senate Bill 825 (as introduced 9-15-09)
Sponsor: Senator Jason E. Allen
Committee: Economic Development and Regulatory Reform
Date Completed: 5-5-10
CONTENT
The bill would amend the Insurance Code to increase the limit on an insurer's exposure for any loss on any one risk or hazard.
Under the Code, an insurer transacting business in Michigan may not expose itself to any loss on any one risk or hazard in an amount exceeding 10% of its paid-up capital and surplus. No portion of a risk or hazard that has been reinsured in an insurer licensed to do business in Michigan is included in determining the limitation of risk.
The bill would increase the limit to 50% of the insurer's paid-up capital and surplus.
MCL 500.640 Legislative Analyst: Patrick Affholter
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Fiscal Analyst: Elizabeth Pratt
Maria Tyszkiewicz
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. sb825/0910