Section 1712. Relationships and transactions between parent corporation and subsidiary

The business operations, corporate  proceedings  and  fiscal  and  accounting records of subsidiaries shall be conducted or maintained
  so as to assure the separate  legal  and  operating  identities  of  the
  parent  corporation  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.  All  transactions  between  the  parent  corporation  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 parent corporation on an equitable
  basis  in  conformity  with  customary  insurance  accounting  practices
  consistently  applied.  The books, accounts and records of each party to
  all such transactions shall be so maintained as to disclose clearly  and
  accurately  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.