J. MILLARD TAWES, Governor                     1029

(i) The cost of each parcel of real or leasehold property so
acquired under the authority of this subsection, including the cost
to the insurer of the improvement or development thereof, when
added to the book value of all other real or leasehold property then
held by it pursuant to this subsection, shall not exceed five per cent
of its admitted assets and when added to the value of all real estate
however acquired or held for investment, including home office and
branch office properties, shall not exceed 20% of the insurer's total
admitted assets; and

(ii) The cost of each parcel of real or leasehold property
acquired under the authority of this subsection, including the cost
to the insurer of the improvement or development thereof, shall not
exceed one per cent of the insurer's admitted assets. Except as other-
wise required by the Commissioner, each parcel of real or leasehold
property held by an insurer under this section shall be valued on its
books as of the 31st day of December of each year at an amount that
will include a writedown of the cost of such property, excluding land
cost but including all improvements or development costs, at a rate
that will average not less than two per cent per annum of such cost
for each year or part thereof that the property has been so held, and
be it further provided that the admitted values of such properties
shall not exceed their depreciated values.

7. INVESTMENTS OF OTHER THAN LIFE INSURERS

97.    Scope of Subtitle.

Except as provided in section 98, which relates to investments of
foreign and alien insurers, this subtitle shall apply to domestic
insurers other than life insurers.

98.    Investments of Foreign and Alien Insurers.

The investment portfolio of a foreign or alien insurer, other than
a life insurer, shall be as permitted by the laws of its domicile but
shall be of a quality substantially 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 insurer which has investments in any one
person in excess of the limit provided in Section 101. AND, PRO-
VIDED FURTHER, THAT THE COMMISSIONER MAY REFUSE
TO GRANT OR RENEW A CERTIFICATE OF AUTHORITY TO
ANY FOREIGN OR ALIEN INSURER, IF HE FINDS THAT ITS <
INVESTMENTS DO NOT COMPLY IN SUBSTANCE WITH THE
INVESTMENT REQUIREMENTS AND LIMITATIONS IM-
POSED BY THIS SUB-TITLE UPON DOMESTIC INSURERS
TRANSACTING THE SAME KIND OR KINDS OF INSURANCE
BUSINESS. For the purposes of this section, the domicile of an alien
insurer, other than an insurer formed under the laws of Canada,
shall be deemed to be that state in which it maintains its largest
deposit of trusteed assets.

99.    Eligibility of Investments.

(1)   Eligibility of an investment shall be determined as of the
date of its making or acquisition.

(2)   Any investment limitation based upon the amount of the
insurer's assets or particular funds shall relate to such assets or