HARRY HUGHES, Governor

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shall be valued on its books as of the 31st day of] 31
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] 2 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 properties 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 reinsurance); reserves for accidental death benefits
and total and permanent disability benefits (less
reinsurance); present value of supplementary contracts and
including dividends left with the company to accumulate at
interest; liability on policies cancelled and not included
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 deferred premiums.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 29, 1979.

CHAPTER 463

(Senate Bill 541)

AN ACT concerning

Life Insurance — Reserve Investments

FOR the purpose of providing that the amount a life
insurance company may invest in first mortgage loans,
or deeds of trust, is an amount not exceeding a certain
percent of the fair market value on all forms of such
fee—simple or improved leasehold real estate; and
increasing the maximum time period for amortization of
such loans; and relating generally to investments by
life insurance companies with respect to loans, secured
by first mortgages or deed of trust on certain real
estate.

BY repealing and reenacting, with amendments,

Article 48A — Insurance Code
Section 96 (7)