§ 58-7-197. Replacing certain assets; reporting certain liabilities. - North Carolina Statutes

§58‑7‑197.  Replacing certain assets; reporting certain liabilities.

(a)        The Commissioner,upon determining that an insurer's asset has not been valued according to thisChapter or that it does not qualify as an asset, shall require the insurer toproperly revalue an improperly valued asset or replace a nonadmitted asset withan asset suitable to the Commissioner within 90 days after the determination.

(b)        The Commissioner,upon determining that an insurer has failed to report certain liabilities thatshould have been reported, shall require that the insurer report thoseliabilities to the Commissioner within 90 days after notice to the insurer.

(c)        When theCommissioner determines that an admitted asset held by any insurer is ofdoubtful value or is without ascertainable value on a public exchange, unlessthe insurer establishes a value by placing the asset upon the market andobtaining a bona fide offer for the asset, the Commissioner may have the assetappraised, and the appraisal shall be the true value of the asset.  No assetmay be carried in an insurer's financial statement under G.S. 58‑2‑165at an appraised value established by the insurer unless the Commissioner'sprior written approval is obtained.

(d)        When any admittedasset defaults as to principal or in the payment of interest or dividends afterit has been purchased by an insurer, the asset shall subsequently be carried atits market value or, after notice and opportunity for hearing, at a valuedetermined by the Commissioner.

(e)        Whenever it appearsto the Commissioner that an insurer has acquired any asset in violation of thisChapter, the Commissioner shall disallow, in whole or in part, the amount ofthe asset that is prohibited by this Chapter.  In any determination of thefinancial position of the insurer, that amount shall be deducted as anonadmitted asset of the insurer. (1991, c. 681, s. 29.)