“Tangible net worth” defined. “Tangible net worth” means all of the assets of an association of self-insured private employers or of a member of such an association except:
1. Accounts receivable, if they are factored or collateralized.
2. An inventory, except one held for resale and not collateralized.
3. A prepaid expense.
4. An unqualified investment.
5. An allocated bond fund.
6. An investment in an affiliate.
7. A restricted fund.
8. A reserve.
9. A security cost, such as a capitalized bond cost.
10. A cash equivalent, unless it is described in the footnotes for the balance sheet by item, and for investments, by duration and nature. A cash flow statement is not a sufficient description.
11. A contingency or commitment, including any estimated cost.
12. Any book adjustment caused by a change in an accounting policy or a restatement.
13. Goodwill or excess cost over the fair market value of assets.
14. Any other items listed in the assets that are deemed unacceptable by the Commissioner because they cannot be justified or because they do not directly support the ability of the association or the member to pay a claim.
Last modified: February 25, 2006