Senate Bill No. 513
(By Senator Helmick)
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[Introduced February 16, 2000;
referred to the Committee on Banking and Insurance.]
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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; and 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.
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(NOTE: The purpose of this bill is to exclude accounts
receivable from affiliates from the assets used in determining
the financial condition of an insurer. This will enhance
regulation of companies with cash-flow problems.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.)
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