J. MILLARD TAWES, Governor                     1023

any amount or amounts thereafter paid by such insurer on any assess-
ments levied for improvements in connection with the property.

(4)   Purchase money mortgages shall be valued in an amount not
exceeding the acquisition cost of such real property or ninety per
cent of the value of such real property, whichever is less.

(5)   The stock of a subsidiary of an insurer shall be valued on the
basis of the value of only such of the assets of such subsidiary as
would constitute authorized investments for the insurer if acquired
or held directly by the insurer.

(6)   No valuations under this section shall be inconsistent with any
applicable valuation or method then currently formulated or ap-
proved by the National Association of Insurance Commissioners or
its successor organization.

85.    Valuation of Bonds.

(1) 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:

(1)   If purchased at par, at the par value.

(ii) 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 in lieu of such method, according to such ac-
cepted method of valuation as is approved by the Commissioner.

(iii) 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 acquis-
tion of such securities.

(iv) Unless otherwise provided by valuation established or ap-
proved by the Commissioner, 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.

(2)   No valuations under this section shall be inconsistent with
any applicable valuation or method then currently formulated or
approved by the National Association of Insurance Commissioners
or its successor organization.

6. INVESTMENTS OF LIFE INSURERS

86.    Scope of Subtitle.

Except for Section 87 which relates to investments of foreign and
alien insurers,- this subtitle applies to domestic life insurers.

87.    Investments of Foreign Insurers.

The investment portfolio of a foreign or alien insurer shall be as
permitted by the laws of its domicile but shall be of a quality sub-
stantially as high as that required under this subtitle for similar
funds of like domestic insurers. Provided that the Commissioner
may refuse to grant or renew a certificate of authority to any foreign
or alien life insurer which has investments in any one person in
excess of the limit provided in Section 92. AND, PROVIDED FUR-