D.C. Mun. Regs. tit. 26, r. 26-A3768

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 26-A3768 - VALUATION OF BONDS

3768.1

All bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued based on Generally Accepted Accounting Principles (GAAP), or at the discretion of the Commissioner, modified GAAP, or Statutory Accounting Principles, as follows:

(a) If purchased at par, at the 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.

3768.2

The purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage, or express charges paid in the acquisition of such securities.

3768.3

The Commissioner shall have full discretion in determining the method of calculating values according to the rules set forth in this section, but no such method or valuation shall be inconsistent with any applicable valuation or method used by insurers in general, or any such method then currently formulated, or approved or permitted by the National Association of Insurance Commissioners or its successor organization.

D.C. Mun. Regs. tit. 26, r. 26-A3768

Final Rulemaking published at 59 DCR 13088 (November 16, 2012)

Authority: Section 22 of the Captive Insurance Company Act of 2004, effective March 17, 2005 (D.C. Law 15-262; D.C. Official Code § 31-3931.21 (2011 Repl.)).