(1) Securities, other than those referred to in section 841, held by an insurer shall be valued, in the commissioner‘s discretion, at their market value, at their appraised value, or at prices determined by the commissioner as representing their fair market value.
  (2) Preferred or guaranteed stocks or shares while paying full dividends may be carried at a fixed value in lieu of market value, at the commissioner’s discretion and in accordance with a method of valuation as the commissioner may approve.

Terms Used In Michigan Laws 500.842

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Commissioner: means the director. See Michigan Laws 500.102
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Insurer: means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other legal entity, engaged or attempting to engage in the business of making insurance or surety contracts. See Michigan Laws 500.106
  (3) Stock of a subsidiary corporation of an insurer shall not be valued at an amount in excess of the net value of the stock as based upon only those assets of the subsidiary that would be eligible under section 910 through 947 for the direct investment of the insurer’s funds.
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