{"data":{"id":"us-ky/krs-304.7-350","jurisdiction":"us-ky","citation":"KRS 304.7-350","heading":"Valuation of assets.","body":"(1) All obligations having a fixed term, rate, and face value held by an insurer\nauthorized to do business in this state may, if amply secured and not in default\neither as to principal or interest, be valued as follows: if acquired at face value, at\nthe face v alue; if acquired above or below face value, on the basis of the purchase\nprice adjusted annually to bring the value to face value at maturity and so as to yield\nin each year the effective rate of interest at which the purchase was made. The\namortization p rovided for in this subsection may be calculated with reasonable\napproximations. The commissioner shall have the power to determine by rule the\neligibility of investments for valuation under this subsection.\n(2) (a) Securities, other than those referred to  in subsection (1) of this section, held\nby an insurer shall be valued, in the discretion of the commissioner, at their\nfair market value, at their appraised value, or at prices determined by the\ncommissioner as representing their fair market value.\n(b) Preferred or guaranteed stock or shares while paying full dividends may be\ncarried at a fixed value in lieu of market value, at the discretion of the\ncommissioner and in accordance with the method of computation he or she\napproves.\n(c) Securities qualifying under KRS 304.7-120, 304.7-423, or 304.7-473 shall be\nvalued at their fair value or net equity value, except that securities of a\nsubsidiary insurance corporation as provided for in KRS 304.7 -120 shall be\nvalued either at cost or on a net equity basis, whichever is greater.\n(3) (a) Real property acquired pursuant to a mortgage loan or contract for sale, in the\nabsence of a recent appraisal deemed by the commissioner to be reliable, shall\nnot be valued at an amount greater than the unpaid principal of the de faulted\nloan or contract at the date of acquisition, together with any taxes and\nexpenses paid or incurred in connection with acquisition, and the cost of\nimprovements thereafter made by the insurer and any amounts thereafter paid\nby the insurer on assessments levied for improvements in connection with the\nproperty.\n(b) Other real property held by an insurer shall not be valued at an amount in\nexcess of fair value as determined by recent appraisal deemed by the\ncommissioner to be reliable. If valuation is b ased on an appraisal more than\nthree (3) years old, the commissioner may, at his or her discretion, call for and\nrequire a new appraisal in order to determine fair value.\n(c) Personal property acquired pursuant to chattel mortgages or security\nagreements shall not be valued at an amount greater than the unpaid principal\nof the defaulted loan at the date of acquisition, together with any taxes and\nexpenses paid or incurred in connection with acquisition, or the fair value of\nthe property, whichever amount is the lesser.\n(4) However, in all cases securities shall be valued in accordance with the standards\npromulgated by the National Association of Insurance Commissioners including the\nPurposes and Procedures of the Securities Valuation Office, the Valuation of\nSecurities Manual, the Accounting Practices and Procedures Manual, the Annual\nStatement Instructions, or any successor valuation procedures officially adopted by\nthe NAIC.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16834","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:39Z","sha256":"f9e91facf5f90c72ca4c98bd49b56169c7ab984d0084eec78e9f082989f51429","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.7-340","next":"us-ky/krs-304.7-360"},"notice":"GroundRules: Original legal text. Not legal advice."}