Sec. 1011.
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 affiliates that uses a pooling or 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. If approval is given, a columnar consolidating or combining work sheet shall be filed with the report, as follows:
(a) Amounts shown on the consolidated or combined audited financial report shall be shown on the work sheet.
(b) Amounts for each insurer subject to this section shall be stated separately.
(c) Noninsurance operations may be shown on the work sheet on a combined or individual basis.
(d) Explanations of consolidating and eliminating entries shall be included.
(e) Any differences between the amounts shown in the individual insurer columns of the work sheet and comparable amounts shown on the annual statements of the insurers shall be reconciled.
History: Add. 1992, Act 182, Imd. Eff. Oct. 1, 1992 ;-- Am. 1994, Act 226, Imd. Eff. June 27, 1994 Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
218-1956-10 - Chapter 10 Annual Audited Financial Reports (500.1001...500.1033)
Section 500.1001 - Definitions.
Section 500.1003 - Nonapplicability of Chapter.
Section 500.1005 - Insurer; Annual Audit; Filing Date; Extensions; Designation of Audit Committee.
Section 500.1021 - Work Papers; Availability; Retention; Review as Investigation; Use.
Section 500.1028 - Internal Audit Function; Exemption; Confidentiality; Report to Audit Committee.
Section 500.1029 - Director or Officer of Insurer; Prohibited Conduct.
Section 500.1033 - Exemption From Any or All Provisions of Chapter.