§ 26-3-307 — Consolidated or combined audits

(a) An insurer may make written application to the
commissioner for approval to file audited consolidated or
combined financial statements in lieu of separate annual audited
financial statements if the insurer is part of a group of
insurance companies which utilizes a pooling or one hundred
percent (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. In those
cases, a columnar consolidating or combining supplemental
schedules shall be filed with the report, as follows:
(i) Amounts shown on the consolidated or combined
audited financial report shall be shown on the supplemental
schedules;
(ii) Amounts for each insurer subject to this section
shall be stated separately;
(iii) Noninsurance operations may be shown on the
supplemental schedules on a combined or individual basis;
(iv) Explanations of consolidating and eliminating
entries shall be included;
(v) A reconciliation shall be included of any
differences between the amounts shown in the individual insurer
columns of the supplemental schedules and comparable amounts
shown on the annual statements of the insurers.