Pennsylvania Code › Title 31 - INSURANCE › Part VIII - Miscellaneous Provisions › Chapter 147 - ANNUAL FINANCIAL REPORTING REQUIREMENTS › Section 147.7 - Consolidated or combined audits

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
				insurer may make written application to the Commissioner for approval to file
				audited consolidated or combined 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 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. A columnar consolidating or
				combining worksheet, setting forth the amounts shown on the consolidated or
				combined audited financial report with a reconciliation of differences between
				the amounts shown in the individual insurer columns of the worksheet and
				comparable amounts shown on the annual statements of the insurer, shall be
				filed with the report. The reconciliation shall include explanations of
				consolidating and eliminating entries. Noninsurance operations may be shown on
				the worksheet on a combined or individual basis. Consolidated or combined
				audited financial reports shall be prepared in conformity with statutory
				accounting practices as set forth in §
									147.4(a)
				(relating to contents of annual audited financial report).
(b) The Commissioner may require an insurer
				to file separate annual audited financial reports.
(c) Subsection (a) does not apply to
				continuing care providers. A continuing care provider may make written
				application to the Commissioner for approval to file consolidated or combined
				financial reports in lieu of separate annual audited financial reports if the
				continuing care provider is part of a group of affiliated entities. A columnar
				consolidating or combining worksheet, setting forth the amounts shown for each
				individual entity on the consolidated or combined audited financial report and
				including explanations of consolidating and eliminating entries, shall be filed
				with the report. Consolidated or combined audited financial reports shall be
				prepared as set forth in §
									147.4(e).
The provisions of this §
											147.7 amended under the authority
					 of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929
					 (71
					 P.S. §§
												66,
					 186,
					 411 and
					 412); sections 320, 630, 1007
					 and 2452 of The Insurance Company Law of 1921 (40 P.S. §§
												443,
					 764a,
					 967 and
					 991.2452); sections 205 and
					 206 of The Pennsylvania Fair Plan Act (40 P.S. §§
												1600.205 and
					 1600.206); section 731 of the
					 Medical Care Availability and Reduction of Error (MCARE) Act (40 P.S. §
												1303.731);
					 40 Pa.C.S. §§
												6125,
					 6331 and
					 6701; sections 11 and 14
					 of the Health Maintenance Organization Act (40 P.S. §§
												1561 and
					 1564); and sections 7 and 25
					 of the Continuing-Care Provider Registration and Disclosure Act (40 P.S.
					 §§
												3207 and
					 3225).