§ 27-11.2-1 - Valuation of bonds.
SECTION 27-11.2-1
§ 27-11.2-1 Valuation of bonds. – (a) All bonds or other evidences of debt having a fixed term and rate ofinterest held by an insurer may, if amply secured and not in default as toprincipal or interest, be valued as follows:
(1) If purchased at par, at the par value;
(2) If purchased above or below par, on the basis of thepurchase price adjusted so as to bring the value to par at maturity and so asto yield in the meantime the effective rate of interest at which the purchasewas made, or in lieu of that method, according to an accepted method ofvaluation as is approved by the department; and
(3) Purchase price shall in no case be taken at a higherfigure than the actual market value at the time of purchase, plus actualbrokerage, transfer, postage or express charges paid in the acquisition of thesecurities.
(b) The department shall have full discretion in determiningthe method of calculating values according to the rules set forth in thissection, but no method or valuation shall be inconsistent with any applicablevaluation or method used by insurers in general, or any method then currentlyformulated or approved by the National Association of Insurance Commissionersor its successor organization.