Section 50.09. Consolidated or combined audits.

  An insurer may file audited consolidated or combined financial statements in lieu of separate annual audited financial statements required under this subchapter if the commissioner approves in writing and if the insurer is part of a group of insurers which utilizes a pooling or 100% reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer cedes all of its direct and assumed business to the pool. If the commissioner permits a consolidated report under this section the report shall include a columnar consolidating or combining work sheet, as follows:

(1)  Amounts shown on the consolidated or combined audited financial report shall be shown on the work sheet.

(2)  Amounts for each insurer subject to this section shall be stated separately.

(3)  Noninsurance operations may be shown on the work sheet on a combined or individual basis.

(4)  Explanations of consolidating and eliminating entries shall be included.

(5)  A reconciliation shall be included of any differences between the amounts shown in the individual insurer columns of the work sheet and comparable amounts shown on the annual statements of the insurers.

History: Cr. Register, July, 1993, No. 451 , eff. 8-1-93.