Consolidated or combined audits

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 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 such cases, a columnar consolidating or combining worksheet must be filed with the report, as follows: 1. Amounts shown on the consolidated or combined audited financial report must be shown on the worksheet. 2. Amounts for each insurer subject to this section must be stated separately. 3. Noninsurance operations may be shown on the worksheet on a combined or individual basis. 4. Explanations of consolidating and eliminating entries must be included. 5. A reconciliation must be included of any differences between the amounts shown in the individual insurer columns of the worksheet and comparable amounts shown on the annual statements of the insurers.