Sec. 32.13  Accounts--general.

    (a) As a general rule, all accounts kept by reporting companies 
shall conform in numbers and titles to those prescribed herein. However, 
reporting companies may use different numbers for internal purposes when 
separate accounts (or subaccounts) maintained are consistent with the 
title and content of accounts and subaccounts prescribed in this system.
    (1) For Class A reporting companies, accounts which are clearly 
summaries of other accounts or subaccounts are to be used for reporting 
purposes and are not otherwise required to be maintained.
    (2) A company may subdivide any of the accounts prescribed. The 
titles of all such subaccounts shall refer by number or title to the 
controlling account.
    (3) A company may establish temporary or experimental accounts 
provided that within 30 days of the opening of such accounts the company 
notifies the Commission of the nature and purpose thereof.
    (b) Exercise of the preceding options shall be allowed only if the 
integrity of the prescribed accounts is not impaired.
    (c) As of the date a company becomes subject to the system of 
accounts, the company is authorized to make any such subdivisions, 
reclassifications or consolidations of existing balances as are 
necessary to meet the requirements of this system of accounts.
    (d) Nothing contained in this part shall prohibit or excuse any 
company, receiver, or operating trustee of any carrier from subdividing 
the accounts hereby prescribed for the purpose of:
    (1) Complying with the requirements of the state commission(s) 
having jurisdiction; or
    (2) Securing the information required in the prescribed reports to 
such commission(s).
    (e) Where the use of subsidiary records is considered necessary in 
order to secure the information required in

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reports to any state commission, the company shall incorporate the 
following controls into their accounting system with respect to such 
subsidiary records:
    (1) Subsidiary records shall be reconciled to the company's general 
ledger or books of original entry, as appropriate.
    (2) The company shall adequately document the accounting procedures 
related to subsidiary records.
    (3) The subsidiary records shall be maintained at an adequate level 
of detail to satisfy state regulators.