Michigan House Bill 6097 modifies single-risk exposure limits for title insurers based on financial ratings and operating history

Michigan House Bill 6097 establishes new single-risk loss exposure limits for title insurers licensed on or after the effective date of the amendatory act, capping potential losses at 10% of paid-up capital and surplus unless specific financial ratings, operating history, and capital thresholds are met. Insurers meeting these criteria or obtaining a waiver from the commissioner may expose themselves to losses up to 50% of their paid-up capital and surplus.

Title insurance companies operating in Michigan face adjusted risk exposure ceilings that dictate how much capital they must reserve or reinsure for single property transactions, depending on when they received their certificate of authority and their financial standing.