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instead of the group capital calculation a limited group capital filing if both of the
following apply:
(a) The insurance holding company system has annual direct written and unaffiliated
assumed premium, including international direct and assumed premium, but excluding
premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood
Program, of less than $1,000,000,000.00.
(b) All of the following additional criteria are met:
(i) Has no insurers within its holding company structure that are domiciled outside of
the United States or 1 of its territories.
(ii) Does not include a banking, depository, or other financial entity that is subject to
an identified regulatory capital framework.
(iii) The holding company system attests that there are no material changes in
transactions between insurers and non-insurers in the group that have occurred since the
last filing of the report to the lead state commissioner and the non-insurers within the
holding company system do not pose a material financial risk to the insurer’s ability to
honor policyholder obligations.
(3) For an insurance holding company that has previously met an exemption with
respect to the group capital calculation pursuant to subrule (1) or (2) of this rule, the lead
state commissioner may require at any time the ultimate controlling person to file an
annual group capital calculation, completed in accordance with the group capital
calculation instructions, if any of the following criteria are met:
(a) An insurer within the insurance holding company system is in a risk-based capital
action level event, as prescribed by the director in an order issued under section 438 of
the act, MCL 500.438, or otherwise prescribed by the director, or a similar standard for a
non-United States insurer.
(b) An insurer within the insurance holding company system meets 1 or more of the
standards of an insurer determined to be in hazardous financial condition as established
under section 436a of the act, MCL 500.436a.
(c) An insurer within the insurance holding company system otherwise exhibits
qualities of a troubled insurer as determined by the lead state commissioner based on
unique circumstances including, but not limited to, the type and volume of business
written, ownership and organizational structure, federal agency requests, and
international supervisor requests.
(4) A non-United States jurisdiction is considered to recognize and accept the group
capital calculation if it satisfies the following criteria:
(a) With respect to an exemption described under section 1325b(3)(d) of the act, MCL
500.1325b, either of the following:
(i) The non-United States jurisdiction recognizes the United States state regulatory
approach to group supervision and group capital, by providing confirmation by a
competent regulatory authority, in that jurisdiction, that insurers and insurance groups
whose lead state is accredited by the NAIC under the NAIC Accreditation Program are
subject only to worldwide prudential insurance group supervision including worldwide
group governance, solvency and capital, and reporting, as applicable, by the lead state
and shall not be subject to group supervision, including worldwide group governance,
solvency and capital, and reporting, at the level of the worldwide parent undertaking of
the insurance or reinsurance group by the non-United States jurisdiction.