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Michigan bill would tighten insurer division statute wording
The proposed changes target Section 5511, which governs how capital, surplus, and policy liabilities shift when an insurer splits.
Michigan lawmakers have introduced a bill to make the state’s insurer division statute clearer, aiming to reduce the risk of misreading key provisions that govern corporate splits, according to Insurance Business.
House Bill 6375, introduced on September 24, 2026, would amend Section 5511 of the Michigan Insurance Code, which covers what happens when one insurer splits into two or more separate entities, including how assets move and which entity ends up holding the policies.
The statute currently uses pronouns such as “it,” “its,” and “they” to refer to the dividing insurer, the new insurers, and affected shareholders, Insurance Business said. The bill would replace those pronouns with full noun phrases to make clear which entity each provision applies to.
The outlet noted that Section 5511 controls how capital, surplus, and other assets vest in the resulting insurers, who is liable for policy obligations after the split, how shares are converted or canceled, and what appraisal rights shareholders retain, and it has been referred to the Committee on Finance.