Section 26-A3102. VALUATION OF INVESTMENTS

 

3102.1In applying the percentage limitations imposed by this Chapter, there shall be used as a base the total of all assets which would be admitted by this Chapter without regard to percentage limitations. All legal measurements used as a base in the determination of all qualified investments shall consist of the amounts determined at the most recent year end as adjusted for the subsequent acquisition and disposition of such investments.

 

3102.2Investments shall be valued in accordance with the published valuation standards of the National Association of Insurance Commissioners (NAIC). Investments in securities for which the NAIC has not published valuation standards in its Valuations of Securities manual, or its successor publication, shall be valued as set forth in subsections 3102.3 through 3102.7.

 

3102.3All obligations having a fixed term and rate shall, if not in default as to principal or interest, be valued as follows:

 

(a)If purchased at par, at the par value; or

 

(b)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.

 

3102.4Common, preferred or guaranteed stocks shall be valued at market value.

 

3102.5Other security investments shall be valued at market value.

 

3102.6Other investments, including real property, shall not be valued at more than the purchase price. The purchase price for real property includes capitalized permanent improvements, less depreciation spread evenly over the life of the property or, at the option of the company, less depreciation computed on any basis permitted under section 301 of the Internal Revenue Code, 26 U.S.C. §301 et seq., and regulations adopted thereunder. Such investments that have been affected by permanent declines in value shall be valued at not more than market value.

 

3102.7Any investment, including real property, not purchased by an HMO but acquired in satisfaction of a debt or otherwise shall be valued in accordance with the applicable procedures for that type of investment contained in this Chapter. For purposes of applying the valuation procedures in the case of any investment acquired in satisfaction of debt, the purchase price shall be deemed to be the market value at the time the investment is acquired or the amount of the debt (including interest, taxes and expenses), whichever amount is less.

 

source

Final Rulemaking published at 46 DCR 5925(July 16, 1999).