Oklahoma § 36-1513 - Valuation of real property - Improvements

§ 36-1513. Valuation of real property - Improvements

A. Real property acquired pursuant to a mortgage loan or

contract for sale shall not be valued at an amount greater than the

unpaid principal of the defaulted loan or contract at the date of

such acquisition, together with any taxes and expenses paid or

incurred in connection with such acquisition. In addition, the

company may make improvements to such property, provided however,

the cost of such improvements plus the acquisition costs and unpaid

principal of the defaulted loan or contract shall not exceed the

lesser of four percent (4%) of the admitted assets or surplus of the

company in regard to policyholders.

B. Other real property held by an insurer shall be valued at an

amount not to exceed the lower of current market value or cost plus

capitalized improvements less normal depreciation. In lieu of

Oklahoma Statutes - Title 36. Insurance

writing down investment real estate or taking part of the value as

nonadmitted when market value is less than book value, an insurer

may establish a reserve for specific properties as a liability. If

valuation is based on an appraisal more than three (3) years old,

the Insurance Commissioner may at his discretion call for and

require a new appraisal in order to determine fair value.

Real property held by an insurer prior to September 1, 1993,

shall be in compliance with the limitations of this section by

December 31, 1997. Insurers shall maintain accurate and adequate

records reflecting the provisions of this section and submit such

records with quarterly and annual statements.

Added by Laws 1957, p. 285, § 1513. Amended by Laws 1989, c. 181, §

3, eff. Nov. 1, 1989; Laws 1993, c. 79, § 5, eff. Sept. 1, 1993.