ARTICLE 6



INVESTMENTS



 



PART I. 
GENERAL PROVISIONS



 



§431:6-101  Definitions pertaining to
investments.  (a)  For purposes of this article:



"Cash" includes cash equivalents.



"Cash equivalents" means highly-rated
and highly-liquid investments or securities with a remaining term of ninety
days or less and rated in the highest short-term category by a nationally
recognized statistical rating organization recognized by the SVO.  Cash
equivalents include government money market mutual funds and class one money
market mutual funds defined by the Purposes and Procedures Manual of the SVO,
or its successor publication.



"Fixed
charges" means interest on funded and unfunded debt, amortization of debt
discount, and rentals for leased properties.



"Institution"
means corporations, joint-stock associations, and business trusts.



"Net
earnings available for fixed charges" means net income after deducting
operating and maintenance expenses, taxes other than federal and state income
taxes, depreciation, and depletion, but excluding extraordinary nonrecurring
items of income or expense appearing in the regular financial statements of
such institution.



"Obligation"
means bonds, debentures, notes, or other evidence of indebtedness.



"Surplus
as regards to policyholders" means the excess of the insurer's admitted
assets over its liabilities.



"SVO"
means the Securities Valuation Office of the National Association of Insurance
Commissioners.



"Value" means fair value.  Market
value is the best evidence of fair value.



(b)  If net earnings are determined in reliance
upon consolidated earnings statements of parent and subsidiary institutions:



(1)  The net earnings shall be determined after
provision for income taxes of subsidiaries and after proper allowance for
minority stock interest, if any, and



(2)  The required coverage of fixed charges shall be
computed on a basis including fixed charges and preferred dividends of
subsidiaries other than those payable by the subsidiaries to the parent
corporation or to any other of the subsidiaries.



Except that if the minority common stock interest in
the subsidiary corporation is substantial, the fixed charges and preferred
dividends may be apportioned in accordance with regulations prescribed by the
commissioner. [L 1987, c 347, pt of §2; am L 2008, c 142, §1]