Texas Insurance Code

§ 401.016 — AUDITED COMBINED OR CONSOLIDATED FINANCIAL STATEMENTS

IN § 401.016Title 4. REGULATION OF SOLVENCY · Part A. GENERAL PROVISIONS · Ch. 401. AUDITS AND EXAMINATIONS · Art. A. INDEPENDENT AUDIT OF FINANCIAL STATEMENTS

Statute text

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(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;

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Legislative history

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.