Texas Insurance Code - Section 401.016. Audited Combined Or Consolidated Financial Statements
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§ 401.016. AUDITED COMBINED OR CONSOLIDATED FINANCIAL
STATEMENTS. (a) An insurer or health maintenance organization
described by Section 401.001(3) or (4) that is required to file an
audited financial report under this subchapter may apply in writing
to the commissioner for approval to file audited combined or
consolidated financial statements instead of separate audited
financial reports if the insurer or health maintenance
organization:
(1) is part of a group of insurers or health
maintenance organizations that uses a pooling arrangement or 100
percent reinsurance agreement that affects the solvency and
integrity of the insurer's or health maintenance organization's
reserves; and
(2) cedes all of the insurer's or health maintenance
organization's direct and assumed business to the pool.
(b) An insurer or health maintenance organization must file
an application under Subsection (a) not later than December 31 of
the calendar year for which the audited combined or consolidated
financial statements are to be filed.
(c) An insurer or health maintenance organization that
receives approval from the commissioner under this section shall
file a columnar combining or consolidating worksheet for the
audited combined or consolidated financial statements that
includes:
(1) the amounts shown on the audited combined or
consolidated financial statements;
(2) the amounts for each insurer or health maintenance
organization stated separately;
(3) the noninsurance operations shown on a combined or
individual basis;
(4) explanations of consolidating and eliminating
entries; and
(5) a reconciliation of any differences between the
amounts shown in the individual insurer or health maintenance
organization columns of the worksheet and comparable amounts shown
on the insurer's or health maintenance organization's annual
statements.
(d) An insurer or health maintenance organization that does
not receive approval from the commissioner to file audited combined
or consolidated financial statements for the insurer or health
maintenance organization and any of the insurer's or health
maintenance organization's subsidiaries or affiliates shall file a
separate audited financial report.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 401.009 401.010 401.011 401.012 401.013 401.014 401.015 401.016 401.017 401.018 401.019 401.020 401.021 401.051 401.052
Last modified: August 11, 2007
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