Transactions within an insurance holding company system to which an insurer subject to registration is a party are subject to the following standards:
a. The terms must be fair and reasonable.
b. Agreements for cost-sharing services and management must include provisions as required by rules adopted by the commissioner.
c. The books, accounts, and records of each party must clearly and accurately disclose the precise nature and details of the transactions, including that accounting information that is necessary to support the reasonableness of the charges or fees to the respective parties.
d. The insurer’s surplus as regards to policyholders following any dividends or distributions to shareholder affiliates must be reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs.
e. Charges or fees for services performed must be reasonable.
f. Expenses incurred and payment received must be allocated to the insurer in conformity with statutory accounting practices consistently applied.