1997 Alaska Statutes
Title 21 INSURANCE
Chapter 21.18. ASSETS AND LIABILITIES
Sec. 21.18.120. Valuation of bonds.

(a) All bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if issued by a solvent entity and not in default in principal or interest, be valued as follows:

(1) if purchased at par, at the par value;

(2) if purchased above or below par, on the basis of the purchase price with amortization of bond premium or discount to bring the value to par at maturity and yield in the meantime the effective rate of interest at which the purchase was made, or instead of this method, according to another accepted method of valuation approved by the director;

(3) the purchase price may not in any case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage, or express charges paid in the acquisition of the securities;

(4) unless otherwise provided by valuation established or approved by the director, security may not be carried at or above the call price for the entire issue during any period within which the security may be called.

(b) The director shall have full discretion in determining the method of calculating values according to the rules set out in this section, and not inconsistent with methods currently formulated or approved by the National Association of Insurance Commissioners.