J. MILLARD TAWES, Governor                     1015

form approved by the Commissioner for the kinds of insurance to be
reported upon therein.

(13) Other assets, not inconsistent with the provisions of this sec-
tion, deemed by the Commissioner to be available for the payment of
losses and claims, at values to be determined by him.

76.    Assets Not Admitted.

In addition to assets impliedly excluded by the provisions of section
75 of this subtitle, the following expressly shall not be allowed as ad-
mitted assets in any determination of the financial condition of an
insurer:

(1)   Good will, organizational expenses, trade names and other like
intangible assets.

(2)   Advances to officers (other than policy loans) whether secured
or not, and advances to employees, agents and other persons on per-
sonal security only. , EXCEPT A BONA FIDE MORTGAGE LOAN,
DULY APPROVED AND RATIFIED BY THE BOARD OF DI-
RECTORS, SECURED BY A FIRST MORTGAGE ON A RESI-
DENCE USED FOR SUCH OFFICER'S OR EMPLOYEE'S PER-
SONAL HABITATION AND FOR AN AMOUNT NOT IN EXCESS
OF THAT PERMITTED FOR ANY OTHER MORTGAGE IN-
VESTMENTS AS PROVIDED UNDER SECTION 96, SUBSEC-
TION 7 OF THIS ARTICLE.

(3)   Stock of such insurer, owned by it, or any material equity
therein or loans secured thereby, or any material proportionate inter-
est in such stock acquired or held through the ownership by such in-
surer of an interest in another firm, corporation or business unit.

(4)   Furniture, fixtures other than electronic and mechanical
machines constituting a data processing and accounting system au-
thorized under section 75 (11), furnishings, safes, vehicles, libraries,
stationery, literature and supplies.

(5)   The amount, if any, by which the aggregate book value of in-
vestments as carried in the ledger assets of the insurer exceeds the
aggregate value thereof as determined under this article.

77.    Liabilities.

In any determination of the financial condition of an insurer, capi-
tal stock and liabilities to be charged against its assets shall include:

(1)   The amount of its capital stock outstanding, if any;

(2)   The amount, estimated consistent with the provisions of this
article, necessary to pay all of its unpaid losses and claims incurred
on or prior to the date of statement, whether reported or unreported,
together with the expenses of adjustment or settlement thereof;

(3)   With reference to life and disability insurance and annuity
contracts:

(i) The amount of reserves on life insurance policies and annuity
contracts in force, valued according to the tables of mortality, rates
of interest, and methods adopted pursuant to this article which are
applicable thereto,