Sec. 4. (a) 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 as follows: If purchased at par, at the par value; 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, or, instead of this method, according to an accepted method of valuation as is approved by the department. 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. The department shall have full discretion in determining the method of calculating values according to the rules set forth in this subsection. However, no such method or valuation under this subsection may be inconsistent with any applicable method or valuation used by insurers in general or the method specified in the Accounting Practices and Procedures Manual.
(b) Securities held by an insurer, other than those referred to in subsection (a), shall be valued, in the discretion of the department, at their market value or at their appraised value or at prices determined by the department as representing the fair market value of the securities. Preferred or guaranteed stocks or shares, while paying full dividends, may be carried at a fixed value in lieu of market value at the discretion of the department and in accordance with the method of valuation that the department approves. No valuation under this subsection may be inconsistent with the applicable valuation or method specified in the Accounting Practices and Procedures Manual.
Formerly: Acts 1935, c.162, s.172a. As amended by P.L.130-1994, SEC.20; P.L.116-1994, SEC.27; P.L.124-2018, SEC.31.
Structure Indiana Code
Article 1. Department of Insurance
Chapter 13. Casualty, Fire, and Marine Insurance Company Powers and Policy Requirements
27-1-13-0.1. Application of Certain Amendments to Chapter
27-1-13-3. Investment of Capital and Funds Above Capital; Real Estate Interests
27-1-13-4. Valuation of Bonds and Securities
27-1-13-5. Insured Loans and Investments
27-1-13-6. Limitation on Risks; Effect of Reinsurance
27-1-13-7. Policy Requirements
27-1-13-7.5. Newly Acquired Motor Vehicle; Required Coverage
27-1-13-8. Estimating Condition; Classification of Items as Assets or Liabilities; Reserves
27-1-13-8.5. Rules to Prescribe Minimum Standards for Establishment of Reserves
27-1-13-9. Trading or Dealing in Commodities, Goods, Wares, and Merchandise
27-1-13-10. Insurance Rating Bureaus; Organizational Regulations
27-1-13-11. Insurance Rating Bureaus; Meetings; Appearance by Aggrieved Persons
27-1-13-12. Insurance Rating Bureau; Division of Representation