PARRIS N. GLENDENING, Governor

Ch. 36

(I)       15% OF THE ADMITTED ASSETS OF THE LIFE INSURER, WHEN
ADDED TO THE BOOK VALUE OF ALL OTHER FEE-SIMPLE OR IMPROVED
LEASEHOLD REAL ESTATE OR LIMITED PARTNERSHIP INTERESTS THEN HELD BY
THE LIFE INSURER UNDER THIS SUBSECTION; AND

(II)     20% OF THE TOTAL ADMITTED ASSETS OF THE LIFE INSURER,
WHEN ADDED TO THE VALUE OF ALL REAL ESTATE HOWEVER ACQUIRED OR HELD
FOR INVESTMENT BY THE LIFE INSURER, INCLUDING HOME OFFICE AND BRANCH
OFFICE PROPERTIES.

(4)      THE COST OF EACH PARCEL OF FEE-SIMPLE OR IMPROVED
LEASEHOLD REAL ESTATE OR EACH LIMITED PARTNERSHIP INTEREST ACQUIRED
UNDER THIS SECTION, INCLUDING THE COST TO THE LIFE INSURER OF IMPROVING
OR DEVELOPING THE REAL ESTATE, MAY NOT EXCEED 1% OF THE ADMITTED
ASSETS OF THE LIFE INSURER.

(5)      (I) EXCEPT AS OTHERWISE REQUIRED BY THE COMMISSIONER,
EACH PARCEL OF FEE-SIMPLE OR IMPROVED LEASEHOLD REAL ESTATE HELD BY A
LIFE INSURER DIRECTLY OR THROUGH A LIMITED PARTNERSHIP UNDER THIS
SUBSECTION SHALL BE VALUED ON THE BOOKS OF THE LIFE INSURER AS OF
DECEMBER 31 OF EACH YEAR AT AN AMOUNT THAT INCLUDES A WRITE-DOWN OF
THE COST OF THE PROPERTY, EXCLUDING THE LAND COST, BUT INCLUDING ALL
IMPROVEMENTS OR DEVELOPMENT COSTS, AT A RATE THAT AVERAGES NOT LESS
THAN 2% PER YEAR OF THE COST OF THE PROPERTY FOR EACH YEAR OR PART OF A
YEAR THAT THE PROPERTY IS HELD.

(II) THE ADMITTED VALUES OF EACH PARCEL OF FEE-SIMPLE OR
IMPROVED LEASEHOLD REAL ESTATE HELD UNDER THIS SUBSECTION MAY NOT
EXCEED THE DEPRECIATED VALUE OF THE PROPERTY.

(6)      A LIFE INSURER MAY NOT COUNT TOWARDS ITS CASH RESERVES
ANY MORE THAN THE LESSER OF:

(I)       75% OF THE INVESTMENT VALUE OF ANY LIMITED
PARTNERSHIP INTEREST; AND

(II)     75% OF THE CURRENT BOOK VALUE OF THAT LIMITED
PARTNERSHIP INTEREST.

(7)      (I) INTERESTS IN LIMITED PARTNERSHIPS UNDER THIS
SUBSECTION SHALL BE VALUED AT THE ACTUAL COST OF THE INVESTMENT
ADJUSTED BY ANY ADDITIONAL CAPITAL CONTRIBUTIONS OR CAPITAL
WITHDRAWALS.

(II) THE VALUATION OF A LIMITED PARTNERSHIP INTEREST MAY
NOT EXCEED THE LIFE INSURER'S PROPORTIONATE SHARE OF THE EQUITY OF THE
REAL ESTATE ASSET OWNED BY THE LIMITED PARTNERSHIP.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 96.

- 953 -