20-511. Valuation of bonds; limitation
A. All bonds or other evidences of debt having a fixed term and rate of interest and held by any insurer may, if amply secured and not in default as to principal or interest, be valued as follows:
1. If purchased at par, at the par value.
2. If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at the earliest date callable at par or at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, or in lieu of such method, according to such accepted method of valuation as is approved by the director.
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 the securities.
B. Unless otherwise provided by valuation established or approved by the national association of insurance commissioners, no such security shall be carried at above the call price for the entire issue during any period within which the security may be so called.
C. The director has full discretion in determining the method of calculating values of bonds as set forth in this section but shall not value bonds in a manner that is inconsistent with the standards promulgated by the securities valuation office of the national association of insurance commissioners.
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