Tex. Ins. Code Section 401.016
Audited Combined or Consolidated Financial Statements


(a)

An insurer or health maintenance organization described by Section 401.001 (Definitions)(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;

(2)

the amounts for each insurer or health maintenance organization stated separately;

(3)

the noninsurance operations shown on a combined or individual basis;

(4)

explanations of consolidating and eliminating entries; and

(5)

a reconciliation of any differences between the amounts shown in the individual insurer or health maintenance organization columns of the worksheet and comparable amounts shown on the insurer’s or health maintenance organization’s annual statements.

(d)

An insurer or health maintenance organization that does not receive approval from the commissioner to file audited combined or consolidated financial statements for the insurer or health maintenance organization and any of the insurer’s or health maintenance organization’s subsidiaries or affiliates shall file a separate audited financial report.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.

Source: Section 401.016 — Audited Combined or Consolidated Financial Statements, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­401.­htm#401.­016 (accessed Mar. 23, 2024).

401.001
Definitions
401.002
Purpose of Subchapter
401.003
Effect of Subchapter on Authority to Examine
401.004
Filing and Extensions for Filing of Audited Financial Report
401.005
Alternative Filing for Canadian or British Insurers or Health Maintenance Organizations
401.006
Exemption for Certain Small Insurers and Health Maintenance Organizations
401.007
Exemption for Certain Foreign or Alien Insurers or Health Maintenance Organizations
401.008
Hardship Exemption
401.009
Contents of Audited Financial Report
401.010
Requirements for Financial Statements in Audited Financial Report
401.011
Qualifications of Accountant
401.012
Hearing on Accountant Qualifications
401.013
Accountant’s Letter of Qualifications
401.014
Registration of Accountant
401.015
Resignation or Dismissal of Accountant
401.016
Audited Combined or Consolidated Financial Statements
401.017
Notice of Adverse Financial Condition or Misstatement of Financial Condition
401.018
Information Discovered After Date of Audited Financial Report
401.019
Report on Significant Deficiencies in Internal Control
401.020
Accountant Work Papers
401.021
Penalty for Failure to Comply
401.051
Duty to Examine Carriers
401.052
Frequency of Examination
401.053
Examination Period
401.054
Powers Related to Examination
401.055
Effect of Subchapter on Authority to Use Information
401.056
Rules Related to Reports and Hearings
401.057
Use of Audit and Work Papers
401.058
Confidentiality of Reports and Related Information
401.059
Determination of Value
401.060
Right to Information Relating to Determination of Value or Market Value
401.061
Disciplinary Action for Failure to Comply with Subchapter
401.062
Stay of Rule, Order, Decision, or Finding
401.101
Use of Department Examiner or Other Qualified Person or Firm
401.102
Legislative Intent as to Appointment or Employment of Examiners and Actuaries
401.103
Appointment of Examiners and Actuaries
401.104
Appointment of Examiners, Actuaries, and Other Persons for Certain Examinations
401.105
Oath of Examiners and Assistants
401.106
Right of Action on Bond
401.107
Registration of Contract Examiners
401.151
Expenses of Examination of Domestic Insurer
401.152
Expenses of Examination of Other Insurers
401.153
Reimbursement of Expenses of Certain Persons or Firms
401.154
Tax Credit Authorized
401.155
Additional Assessments
401.156
Deposit and Use of Assessment and Fee
401.201
Confidentiality of Early Warning System Information
401.251
Definitions
401.252
Self-directed Budget
401.253
Audits
401.254
Records
401.255
Membership in Employees Retirement System

Accessed:
Mar. 23, 2024

§ 401.016’s source at texas​.gov