§ 27-1-12-4 — Valuation of bonds and securities

(a) All bonds or other evidences of debt having
a fixed term and rate of interest held by an insurer may, if amply
secured and 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, or, instead of this
method, according to an accepted method of valuation approved by the
department. The purchase price shall in no case be taken at a higher
figure than the actual market value at the time of purchase, plus actual
brokerage, transfer, postage, or express charges paid in the acquisition
of the securities. The department shall have full discretion in
determining the method of calculating values according to the rules set
forth in this subsection. However, no such method or valuation under
this subsection may be inconsistent with any applicable method or
valuation used by insurers in general or the method specified in the
Accounting Practices and Procedures Manual.
(b) Securities held by an insurer, other than those referred to in
subsection (a), shall be valued, in the discretion of the department, at
their market value or at their appraised value or at prices determined by
the department as representing the fair market value of the securities.
Preferred or guaranteed stocks or shares, while paying full dividends,
may be carried at a fixed value in lieu of market value at the discretion
of the department and in accordance with the method of valuation that
the department approves. No valuation under this subsection may be
inconsistent with the applicable valuation or method specified in the
Accounting Practices and Procedures Manual.
Formerly: Acts 1935, c.162, s.150. As amended by
P.L.130-1994, SEC.16; P.L.116-1994, SEC.21; P.L.124-2018,
SEC.15.