CHAPTER 232

An Act to amend and reenact § 88.1-167 of the Code of Virginia, relat-
ing to valuation of certain stocks and securities of certain insurance
companies.

[H 373]

Approved March 12, 1954
Be it enacted by the General Assembly of Virginia:

1. That § 38.1-167 of the Code of Virginia be amended and reenacted
as follows:

§ 38.1-167. All stocks, except as hereinafter provided, and all bonds
or other evidences of indebtedness, except as provided in § 38.1-166,
owned by an insurance company authorized to do business in this State,
shall be valued at not to exceed their market value as determined by
current sales or stock market quotations, or at not to exceed prices deter-
mined by the Commission as representing their fair market value.

Preferred or guaranteed stocks or shares while paying full dividends
may be carried at a fixed value in lieu of market value at the discretion
of the Commission and in accordance with such method of computation
as it may approve.

The stock of an insurance company, other than a life insurance com-
pany, Shall be valued at not to exceed its book value as shown by its last
annual statement or the last report on examination, whichever is more
recent. The book value of a share of common stock of an insurance com-
pany, other than a life insurance company, shall be ascertained by divid-
ing (a) the amount of its capital and surplus funds less the value of all
of its preferred stock outstanding, if any, by (b) the number of shares of
its common stock issued and outstanding.

The stock of a subsidiary of an insurance company shall be valued on
the basis of the value only of such of the assets of such subsidiary as
would constitute lawful investments for the insurance company if acquired
270 ACTS OF ASSEMBLY [vA., 1954

or held directly by the insurance company; provided, an insurance com-
pany may, at its option, value its holdings ‘of stock in a subsidiary in an
amount not less than the cost of acquiring such stock if such acquisition
cost is less than the value determined as above.