PART II. ASSETS AND LIABILITIES

 

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

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

(2)  Investments, securities, properties, and securedloans acquired or held in accordance with article 6, and in connectiontherewith the following items:

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

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

(C)  Interest due or accrued upon a collateralloan 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 thejudgment of the commissioner a collectible asset.

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

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

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

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

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

(6)  Installment premiums other than life insurancepremiums, in accordance with rules adopted by the commissioner consistent withpractice formulated or adopted by the National Association of InsuranceCommissioners;

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

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

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

(9)  Amounts receivable by an assuming insurerrepresenting funds withheld by a solvent ceding insurer under a reinsurancetreaty;

(10)  Deposits or equities recoverable fromunderwriting associations and reinsurance funds, or from any suspended bankinginstitution, to the extent deemed by the commissioner available for the paymentof losses and claims and at values to be determined by the commissioner;

(11)  Electronic data hardware;

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

(13)  All assets, whether or not consistent with theprovisions of this code, as may be allowed pursuant to the annual statementform provided for in section 431:3-301. [L 1987, c 347, pt of §2; am L 2002, c155, §11]