Valuation of property.
1. Real property acquired pursuant to a mortgage loan or contract for sale, in the absence of a recent appraisal deemed by the Commissioner to be reliable, must not be valued at an amount greater than the unpaid principal of the defaulted loan or contract plus interest due and accrued at the date of acquisition, together with any taxes and expenses paid or incurred in connection with the acquisition, and the cost of improvements thereafter made by the insurer and any amounts thereafter paid by the insurer on assessments levied for improvements in connection with the property.
2. Other real property held by an insurer must not be valued at an amount in excess of the lesser of the fair value as determined by recent appraisal or the actual cost, plus capitalized improvements, less normal depreciation. If valuation is based on an appraisal more than 3 years old, the Commissioner may, at his discretion, call for and require a new appraisal in order to determine fair value.
Last modified: February 27, 2006