(1)(a) Subject to the provisions of
paragraphs (b), (c), and (d) of this subsection (1), all obligations having a fixed term
and rate may, if not in default as to principal or interest, be valued as follows: If
purchased at par, at the par value; if purchased above or below par, on the basis of
the purchase price adjusted so as to bring the value to par at maturity and so as to
yield in the meantime the effective rate of interest at which the purchase was
made.
(b)The purchase price shall in no case be taken at a higher figure than the
actual market value at the time of purchase, plus brokerage charges paid in the
acquisition of such obligations.
(c)No such obligation shall be carried at above the call price for the entire
issue during any period within which the obligation m
Free access — add to your briefcase to read the full text and ask questions with AI
(1) (a) Subject to the provisions of
paragraphs (b), (c), and (d) of this subsection (1), all obligations having a fixed term
and rate may, if not in default as to principal or interest, be valued as follows: If
purchased at par, at the par value; if purchased above or below par, on the basis of
the purchase price adjusted so as to bring the value to par at maturity and so as to
yield in the meantime the effective rate of interest at which the purchase was
made.
(b) The purchase price shall in no case be taken at a higher figure than the
actual market value at the time of purchase, plus brokerage charges paid in the
acquisition of such obligations.
(c) No such obligation shall be carried at above the call price for the entire
issue during any period within which the obligation may be so called, and premiums
paid at purchase shall be amortized by the scientific method to the first call date at
which the entire issue may be redeemed.
(d) Obligations subject to amortization under the published findings of the
national association of insurance commissioners shall be carried at their amortized
values. Obligations which do not qualify for amortization shall be reported at their
market value or a book value based on an amortized computation, whichever is
lower.
(2) (a) Common stocks shall be valued at their market value, as determined
by customary method, or, at the option of the company, they may be carried at cost
if cost is less than market value. If no publicly traded market quotation is available,
the value of the stocks shall be based on the pro rata share of the issuing
company's net worth as shown by its audited financial statement or, in the case of
an insurance company, the pro rata share of its statutory net worth.
(b) Preferred stocks shall be valued in accordance with procedures
promulgated annually by the valuations committee of the national association of
insurance commissioners.
(3) Other property purchased by a company may be valued at not more than
its cost plus the cost of capitalized additions and permanent improvements, less
depreciation. Depreciation shall be computed under the straight line method or, at
the option of the company, under any other method resulting in larger accumulated
depreciation at any given time. Depreciation of any buildings shall be based upon an
estimated useful life of not more than fifty years.
(4) Property acquired in satisfaction of a debt shall be valued at its fair
market value or the amount of the debt, including capitalized taxes and expenses,
whichever amount is less.
(5) Property originally acquired in satisfaction of a debt and subsequently
transferred to qualification under section 10-3-220 or 10-3-230 shall be valued as
provided in subsection (3) of this section, and its cost shall be deemed to be its
value at time of transfer determined under subsection (4) of this section.
(6) To the extent investments are valued by the securities valuation office of
the national association of insurance commissioners, all investments owned by
domestic insurance companies shall be valued in accordance with the most
recently published valuations of the securities valuation office. Other investments
not valued by the securities valuation office shall be valued as otherwise is provided
in this section, or, if not otherwise provided in this section, in accordance with
procedures promulgated by the national association of insurance commissioners.