a) An insurer may make written application to the Director for approval to file a consolidated or combined annual audited financial report in lieu of separate annual audited financial reports if the insurer is part of a group of insurance companies which utilizes 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. In these cases, a columnar consolidating or combining worksheet shall be bound into and filed with the report as follows:
- 1) Amounts shown on the consolidated or combined annual audited financial report shall be shown on the worksheet;
- 2) Amounts for each insurer subject to this Section shall 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 shall be included; and
- 5) 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.
- b) The Director shall require any insurer to file separate annual audited financial reports although permission had previously been given to file on a consolidated or combined basis if the Director determines the reasons and/or circumstances given for approval of the consolidated audit, pursuant to subsection (a), no longer exist.
(Source: Amended at 33 Ill. Reg. 6974, effective May 11, 2009)