P&CMImedium
Under MCL 500.4601 et seq., a Michigan captive insurer is primarily organized to:
ASell personal lines to Michigan residents through retail agents
Insure the risks of its owners or affiliated entities
CProvide MBPIA residual-market wind coverage
DReinsure the MCCA
Why this is the answer
Michigan's captive statute (Chapter 46, MCL 500.4601+) permits pure, association, sponsored, and special-purpose captives. Captives provide self-insurance vehicles for parent companies or groups, often for hard-to-place commercial risks, subject to DIFS licensing and capital requirements.
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