§ 58-10-215. Consolidated or combined audits. - North Carolina Statutes

§ 58‑10‑215. Consolidated or combined audits.

An insurer may make writtenapplication to the Commissioner for approval to file audited consolidated orcombined financial statements in lieu of separate annual audited financialstatements if the insurer is part of a group of insurance companies thatutilizes a pooling or one hundred percent (100%) reinsurance agreement thataffects the solvency of the insurer and affects the integrity of the insurer'sreserves and the insurer cedes all of its direct and assumed business to thepool. In such cases, a columnar consolidating or combining worksheet that meetsall of the following criteria shall be filed with the report:

(1)        Amounts shown on theconsolidated or combined audited financial report shall be shown on theworksheet.

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

(3)        Noninsuranceoperations may be shown on the worksheet on a combined or individual basis.

(4)        Explanations ofconsolidating and eliminating entries shall be included.

(5)        A reconciliationshall be included of any differences between the amounts shown in theindividual insurer columns of the worksheet and comparable amounts shown on theannual statements of the insurers.  (2009‑384, s. 1.)