Consolidated Or Combined Audits

An insurer may make written application to the superintendent for approval to file consolidated or combined annual audited financial reports in lieu of separate annual audited financial reports 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 such 13.2.5 NMAC 8 insurer cedes all of its direct and assumed business to the pool. In such cases, a columnar consolidated or combined worksheet shall be filed with the report, as follows: A. amounts shown on the consolidated or combined audited financial report shall be shown on the worksheet; B. amounts for each insurer subject to this section shall be stated separately; C. noninsurance operations may be shown on the worksheet on a combined or individual basis; D. explanations of consolidated and eliminated entries shall be included; and E. a reconciliation shall 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. [13.2.5.19 NMAC – Rn, 13.2.5.18 NMAC, 10/01/2020] 13.2.5.20 SCOPE OF EXAMINATION AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT: A. The superintendent will not accept any annual audited financial report prepared in whole or in part by any person or firm that is not recognized as a qualified ICPA. B. The examination of the insurer’s financial statements shall be conducted in accordance with generally accepted auditing standards. C. The ICPA shall use such other procedures illustrated in the NAIC’s financial condition examiner’s handbook as the ICPA may deem necessary.