Section 1608. Relationships and transactions between parent and subsidiary

(a) The  business  operations,  corporate  proceedings  and  fiscal  and
  accounting  records  of  subsidiaries  organized or acquired pursuant to
  this article shall be conducted  or  maintained  so  as  to  assure  the
  separate  legal  and  operating identities of the parent and subsidiary,
  but nothing herein shall preclude arrangements for common management  or
  the  cooperative  or  joint  use  of  personnel,  property  or  services
  otherwise consistent with this chapter.
    (b) All transactions between the insurer and its subsidiaries shall be
  fair and equitable, charges or fees  for  services  performed  shall  be
  reasonable  and  all  expenses  incurred  and payments received shall be
  allocated to the insurer  on  an  equitable  basis  in  conformity  with
  customary insurance accounting practices consistently applied.
    (c)  The  books,  accounts  and  records  of  each  party  to all such
  transactions shall  be  so  maintained  as  to  clearly  and  accurately
  disclose  the  nature  and  details  of the transactions, including such
  accounting information as is necessary to support the reasonableness  of
  the charges or fees to the respective parties.
    (d)  The  superintendent  may  promulgate regulations relating to such
  subsidiaries, their management and their relationships and  transactions
  with their parent insurance companies and their affiliates to the extent
  that  the  same  may  affect  the  operations,  management  or financial
  condition of domestic insurers.  Subsidiaries that are persons within  a
  holding  company system, as such terms are defined in article fifteen of
  this chapter, shall be subject to the provisions of such article.