Vermont § 3719 - Valuation of bonds, etc

§ 3719. Valuation of bonds, etc

• . Bonds or other evidences of debt having a fixed term and rate held by a life insurance
  company, assessment life association, or fraternal beneficiary association authorized
  to do business in this State, if amply secured and not in default as to principal
  and interest, shall be valued as follows: At their market value on December 31 preceding
  the filing of its return with the Commissioner; or, at the option of the company,
  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; provided, that the purchase price shall in no case be taken at a higher
  figure than the actual market value at the time of purchase; and provided, further,
  that the Commissioner shall have full discretion in determining the method of calculating
  values according to the foregoing rule. A company having selected one of the foregoing
  methods of valuation shall not change such method without the consent and approval
  of the Commissioner. At any time, in his or her discretion, the Commissioner may require
  any insurance corporation, other than a life insurance corporation, authorized to
  do business in this State, to value its bonds or other evidences of debt in accordance
  with the foregoing rule. Provided, however, that any valuation method used shall be
  consistent with the valuation method promulgated by the National Association of Insurance
  Commissioners. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 3, § 1); amended 1993, No. 12, § 12, eff. April 26, 1993.)