846                               Laws of Maryland                      [Ch. 284

(11)    Interest, rents or other fixed income due and accrued on any
of the investments named in subsections (1), (2), (3), (4), (5), (7),
(8), (9), and (10), and upon policy loans of the insurer.

(12)    Such unencumbered fee-simple or improved leasehold real
estate other than property to be used primarily for mining, recrea-
tional, amusement, hotel or club purposes, as may be acquired as an
investment for the production of income, or as may be acquired to
be improved or developed for any such investment purposes, subject
to the following conditions and limitations:

(i) The cost of each parcel of real or leasehold property so ac-
quired 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 percent of its admit-
ted 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 so ac-
quired under the authority of this subsection, including the cost to
the insurer of the improvement or development thereof, shall not
exceed one percent 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 write-down of the cost of such property, excluding
land cost but including all improvements or developments costs, at
a rate that will average not less than two percent 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 proper-
ties shall not exceed their depreciated values.

The entire reserves of a domestic life insurance company, as used
in this section, shall be the sum of:

Net present value of all outstanding policies in force (less reinsur-
ance); reserves for accidental death benefits and total and perma-
nent disability benefits (less reinsurance); present value of supple-
mentary contracts and including dividends left with the company to
accumulate at interest; liability on policies cancelled and not in-
cluded in "net reserve" upon which a surrender value may be
demanded, and policy claims and losses outstanding; any additional
reserves which may be reasonably required by the Commissioner on
account of such insurance; less amount of net uncollected and de-
ferred premiums.

Sec. 2. Be it further enacted, That Section 104 of Article 48A
of the Annotated Code of Maryland (1968 Replacement Volume
and 1971 Cumulative Supplement), title "Insurance Code," subtitle
"7. Investments of Insurers other than Life Insurers," be and it is
hereby repealed and re-enacted, with amendments, to read as follows:

104.

The reserve investments of an insurer shall consist of the follow-
ing classes of assets subject to the limit, if any, set forth with
regard to each type or class of asset: