COMPILED CODE - Iowa Legislature - State of Iowa

372
§§ 5597-al-5625. INSURANCE OTHER THAN LIFE. Tit. XVIII, Ch. 7.
10 fuse to pay the same, the commissioner shall at once revoke its cer-
11 tificate of authority to transact business within this state.
[S., '13, § 1839-e; 39 G. A., ch. 209, § 19.]
CHAPTER 6-A.
VALUATION OF SECURITIES OF LIFE INSURANCE COMPANIES AND
ASSOCIATIONS.
SECTION 5597-al. Rule of valuation.
1 All bonds or other evidences of debt having a fixed term and
2 rate held by any life insurance company, assessment life association
3 or fraternal beneficiary association authorized to do business in this
4 state may, if amply secured and not in default as to principal and
5 interest, be valued as follows:
6 1. If purchased at par, at the par value.
7 2. If purchased above or below par, on the basis of the purchase
8 price adjusted so as to bring the value to par at maturity and so as
9 to yield in the meantime the effective rate of interest at which the
10 purchase was made.
11 Provided that, the purchase price shall in no case be taken at a
12 higher figure than the actual market value at the time of purchase.
13 The commissioner of insurance shall have full discretion in de-
14 termining the method of calculating values according to the foregoing
15 rule.
[39 G. A., ch. 198, § 1.]
CHAPTER 7.
INSURANCE OTHER THAN LIFE.
SECTION 5625. Dividends—reserve funds.
1 The directors or managers of a stock company incorporated under
2 the laws of this state shall make no dividends, except from the profits
3 arising from their business, and in estimating the profits, a reserve
4 for unearned premiums as set out in the following section, also a
5 reserve for unpaid losses, expenses and taxes which have been in-
6 curred shall be set up; and there shall also be held as nonadmitted
7 assets all sums due the corporation on bonds and mortgages, bonds,
8 stocks and book account, of which no part of the principal or interest
9 thereon has been paid during the year preceding such estimate of
10 profits, and upon which suit for foreclosure or collection has not been
11 commenced, or which, after judgment has been obtained thereon, shall
12 have remained more than two years unsatisfied, and on which 'in-
13 terest has not been paid; and such judgment with the interest due
14 or accrued thereon and remaining unpaid, shall also be so held. Any
15 dividend made contrary to these provisions shall subject the com-
16 pany making it to forfeiture of its franchise.
[C, '73, § 1136; C, '97, § 1702; 39 G. A., ch. 190, § 1.]