§ 1414. Valuation of investments. (a) (1) All obligations having a\nfixed term and rate of interest and held by any life insurance company\nor fraternal benefit society authorized to do business in this state, if\namply secured and not in default as to principal or interest, shall be\nvalued as follows:\n (A) if purchased at par, at the par value;\n (B) if purchased above or below par, on the basis of the purchase\nprice adjusted so as to bring the value to par at maturity and yield in\nthe meantime the effective rate of interest at which the purchase was\nmade, or, in the superintendent's discretion, on the basis of the method\nof calculation commonly known as the pro rata method.\n (2) The purchase price shall in no case be taken at a higher figure\nthan the actual market value at the time of acquisition.\n (3) The superintendent shall have the power to determine the\neligibility of any such investments for valuation on the basis of\namortization, and may by regulation prescribe or limit the types of\nsecurities so eligible for amortization. All obligations which in the\njudgment of the superintendent are not amply secured shall not be\neligible for amortization and shall be valued in accordance with\nsubsection (b) hereof.\n (4) The superintendent may, if he finds that the interests of\npolicyholders so permit or require, by regulation permit or require any\nclass of insurers, other than life insurance companies or fraternal\nbenefit societies, authorized to do business in this state, to value\ntheir obligations in accordance with the foregoing rule.\n (b) (1) Except securities subject to amortization and except as\notherwise provided in this chapter, the investments (including any\ninvestments in an investment company) of all insurers authorized to do\nbusiness in this state shall be valued, in the discretion of the\nsuperintendent, at their market value, or at their appraised value, or\nat prices determined by him as representing their fair market value.\n (2) If the superintendent finds that in view of the character of\ninvestments of the insurer it would be prudent for such insurer to\nestablish a special reserve for possible losses or fluctuations in the\nvalues of its investments, he may require that a reserve, reasonable in\namount, be established and maintained and that it be reported in any\nstatement or report of the financial condition of such insurer.\n (3) The superintendent may, in connection with any examination or\nrequired financial statement of the insurer, require it to furnish him a\ncomplete financial statement and audited report of the financial\ncondition of any corporation whose securities are owned wholly or partly\nby such insurer and may cause an examination to be made of any\nsubsidiary or affiliate of such insurer.\n (c) (1) The shares of an insurance company which is not a subsidiary,\nor affiliate, including for purposes of this subsection any corporation\nhaving a majority of its assets invested in one or more insurance\ncompanies, shall be valued in accordance with subsection (b) of this\nsection if such shares are registered on a national securities exchange,\nas provided in the federal Securities Exchange Act of 1934, 15 U.S.C. §§\n78a-78kk.\n (2) Except as otherwise provided in section four thousand two hundred\nforty of this chapter, shares of an insurance company which is a\nsubsidiary, or affiliate, shall be valued according to the methods\napproved by the National Association of Insurance Commissioners for the\nvaluation of subsidiary, controlled and affiliated entities, or such\nother method that the superintendent in a regulation determines would be\nin the best interests of the policyholders and the people of this state.\n (3) The book value of common shares of an insurance company shall be\nascertained by dividing (i) the amount of the insurer's capital and\nsurplus less the value of all its preferred shares, if any, outstanding,\nby (ii) the number of common shares out
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.