H. B. 4523
(By Delegates Beane, Mahan, Cann, Mezzatesta,
Facemyer, Faircloth and L. White)
[Introduced February 14, 2000; referred to the
Committee on Banking and Insurance then Finance.]
A BILL to amend and reenact section three, article seven, chapter
thirty-three of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to assets not
considered in determining the financial condition of
insurers; excluding as an asset receivables due from
affiliates; exception.
Be it enacted by the Legislature of West Virginia:
That section three, article seven, chapter thirty-three of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 7. ASSETS AND LIABILITIES.
§33-7-3. Assets not allowed.
In addition to assets impliedly excluded by the provisions
of section one of this article, the following expressly shall not
be allowed as assets in any determination of the financial
condition of an insurer:
(a) Goodwill, trade names and other like intangible assets.
(b) Advances to officers (other than policy loans) whether
secured or not, and advances to employees, agents, and other
persons on personal security only.
(c) Stock of such the insurer, owned by it, or any equity
therein or loans secured thereby, or any proportionate interest
in such the stock acquired or held through the ownership by such
the insurer of an interest in another firm, corporation or
business unit.
(d) Furniture, fixtures, furnishings, safes, vehicles,
libraries, stationery, literature and supplies, and except, in
the case of any insurer, such personal property as the insurer is
permitted to hold pursuant to article eight of this chapter, or
which is acquired through foreclosure of chattel mortgages
acquired pursuant to article eight of this chapter, or which is
reasonably necessary for the maintenance and operation of real
estate lawfully acquired and held by the insurer other than real
estate used by it for home office, branch office and similar
purposes.
(e) The amount, if any, by which the aggregate book value of
investments as carried in the ledger assets of the insurer
exceeds the aggregate value thereof as determined under this
chapter.
(f) Receivables due from affiliates, unless the receivables are already in transit and under the control of the insurer.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.