PART II. 
ASSETS AND LIABILITIES



 



§431:5-201  Qualified assets.  In any
determination of the financial condition of an insurer, only such assets as are
owned by the insurer, and which consist of the following may be used:



(1)  Cash in the possession of the insurer or in
transit under its control, and the true positive balance of any deposit of the
insurer in a solvent bank or trust company;



(2)  Investments, securities, properties, and secured
loans acquired or held in accordance with article 6, and in connection
therewith the following items:



(A)  Interest due or accrued on any bond or
evidence of indebtedness which is not in default and which is not valued on a
basis including accrued interest.



(B)  Declared and unpaid dividends on stocks
and shares unless the amount has otherwise been allowed as an asset.



(C)  Interest due or accrued upon a collateral
loan in an amount not to exceed six months' interest thereon.



(D)  Interest due or accrued on:



(i)  Deposits in solvent banks, trust companies,
and financial investment companies; and



(ii)  Other assets if such interest is in the
judgment of the commissioner a collectible asset.



(E)  Interest due or accrued on a mortgage
loan, in an amount not exceeding in any event the amount, if any, of the excess
of the value of the property less delinquent taxes thereon over the unpaid
principal; provided that interest due and unpaid for a period in excess of six
months shall not be allowed as an asset.



(F)  Rent due or accrued on real property if
such rent is not in arrears for more than three months, unless the rent is
secured by property held in the name of the tenant and conveyed to the insurer
as collateral.



(3)  Premium notes, policy loans, and other policy
assets and liens on policies of life insurance, in an amount not exceeding the
legal reserve and other policy liabilities carried on each individual policy;



(4)  The net amount of uncollected and deferred
premiums on an effective date item basis and annuity considerations in the case
of a life insurer, corresponding to the basis on which reserves are held;



(5)  Producer balances or uncollected premiums, other
than for life insurance and other receivables, not more than ninety days past
due, less commissions payable thereon; provided that the foregoing limitation
shall not apply to premiums and other receivables payable directly or
indirectly by the United States government or any of its instrumentalities;



(6)  Installment premiums other than life insurance
premiums, in accordance with rules adopted by the commissioner consistent with
practice formulated or adopted by the National Association of Insurance
Commissioners;



(7)  Notes and like written obligations not past due,
taken for premiums other than life insurance premiums, on policies permitted to
be issued on such basis, to the extent of the unearned premium reserves carried
thereon and unless otherwise required by rules adopted by the commissioner;



(8)  (A)  The full amount of reinsurance
recoverable by a ceding insurer from a solvent reinsurer not disqualified to
take such reinsurance under this code; or



(B)  So much of reinsurance recoverable from
such reinsurer as does not exceed the liabilities carried by the ceding insurer
for amounts withheld under a reinsurance treaty with such reinsurer as security
for the payment of obligations thereunder if such funds are held subject to
withdrawal by, and under the control of, the ceding insurer in the case of a
reinsurer disqualified under this code;



(9)  Amounts receivable by an assuming insurer
representing funds withheld by a solvent ceding insurer under a reinsurance
treaty;



(10)  Deposits or equities recoverable from
underwriting associations and reinsurance funds, or from any suspended banking
institution, to the extent deemed by the commissioner available for the payment
of losses and claims and at values to be determined by the commissioner;



(11)  Electronic data hardware;



(12)  Other assets not inconsistent with the foregoing
provisions, deemed by the commissioner available for the payment of losses and
claims; and



(13)  All assets, whether or not consistent with the
provisions of this code, as may be allowed pursuant to the annual statement
form provided for in section 431:3-301. [L 1987, c 347, pt of §2; am L 2002, c
155, §11]