New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IV - Financial Condition Of Insurer and Reports to Superintendent
Subchapter A - Rules of General Application
Part 78 - Evaluation Of Subsidiaries Of Insurance Companies
Section 78.3 - Valuation of a subsidiary which is not an insurer
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 78.3
Current through Register Vol. 46, No. 39, September 25, 2024
The stock of any other subsidiary of an insurer which is not itself an insurer shall be valued, subject to the additional provisions in section 78.4 of this Part, on the basis of the greater of:
(a) the value of only such of the assets of such subsidiary as would constitute lawful investments for the insurer if acquired or held directly by the insurer; or
(b) one of the following bases appropriate to each type of subsidiary owned by it, provided, however, that an insurer shall not be required to value the stock of all its subsidiaries on the same basis:
(1) the net worth of the subsidiary
determined in accordance with generally accepted accounting principles, as of
the end of its most recent fiscal year, provided, subject to section
78.4 of this Part, that the
financial statements of the subsidiary for its most recent fiscal year have
been audited by an independent public accountant in accordance with generally
accepted auditing standards; or
(2)
a value equal to the cost of the stock of the subsidiary, provided such value
is determined and adjusted to reflect subsequent operating results in
accordance with generally accepted accounting principles; or
(3) the market value of the stock of the
subsidiary, if the stock is listed on a national securities exchange;
or
(4) the value, if any, placed on
the stock of such subsidiary by the National Association of Insurance
Commissioners; or
(5) any other
value which the insurer can substantiate to the satisfaction of the
superintendent as being a reasonable value.
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