Michigan House Insurance Committee hears bills to allow private share insurance for state-chartered credit unions

Chair Harris opened the House Insurance Committee hearing and introduced a package of five bills (HB 5779–5783) that would update Michigan's Credit Union Act to permit state-chartered credit unions to use qualified private share insurance.

The bills, Harris said, would not eliminate consumer protections or regulatory oversight but would allow private share insurers to provide baseline coverage in situations where federal insurance (through the National Credit Union Administration) is not used. "This legislation does not eliminate consumer protections or regulatory oversight," Harris said, arguing the statutory framework should allow flexibility while preserving safety.

Vice Chair Brenda Carter, a co-sponsor of the package and sponsor of HB 5783, told the committee the bills are intended to enable lawful, clear and properly structured communications between credit unions, regulators and qualified private insurers. "If we're going to allow qualified private insurance…