2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 521G - PROTECTED CELL COMPANIES
521G.4 - DETERMINATION OF FAIR VALUE -- VALUATION TECHNIQUE.

        521G.4  DETERMINATION OF FAIR VALUE -- VALUATION
      TECHNIQUE.
         A quoted market price in an active market is deemed to be the best
      evidence of fair value of an asset and shall be used as the basis for
      the measurement of fair value, if available.  If a quoted market
      price is available, the fair value is the product of the number of
      trading units times the quoted market price.  If a quoted market
      price is not available, the estimate of fair value shall be based on
      the best information available.  The estimate of fair value shall
      consider the price for similar assets and liabilities and the results
      of a valuation technique to the extent available in the
      circumstances.  For purposes of this section, "valuation
      technique" includes, but is not limited to, the present value of
      estimated expected future cash flows using a discount rate
      commensurate with the risks involved, option-pricing models, matrix
      pricing, option-adjusted spread models, and fundamental analysis.  A
      valuation technique for measuring financial assets and liabilities
      and servicing assets and liabilities shall be consistent with the
      objective of measuring fair value.  A valuation technique shall
      incorporate assumptions that a market participant would use in
      estimating value, future revenue, and future expenses, including
      assumptions about interest rates, default, prepayment, and
      volatility.  In measuring financial liabilities and servicing
      liabilities at fair value by discounting estimated future cash flows,
      discount rates shall be used at which those liabilities could be
      settled in an open and competitive transaction.  An estimate of
      expected future cash flow, if used to estimate fair value, shall be
      the best estimate based on reasonable and supportable assumptions and
      projections.  All available evidence shall be considered in
      developing an estimate of expected future cash flow.  The weight
      given to the evidence shall be commensurate with the extent to which
      the evidence can be verified objectively.  If a range is estimated
      for either the amount or timing of possible cash flows, the
      likelihood of possible outcomes shall be considered in determining
      the best estimate of such future cash flows.  

         2000 Acts, ch 1046 §4
         Referred to in § 521G.3