Section 14A: Committee on Valuation of Securities of National Association of Insurance Commissioners; assessment of expenses
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/ma/part-i/title-xxii/chapter-175/14a·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 14A. If, in the valuation of securities held by a domestic life company, it becomes necessary or expedient for the commissioner to contribute to the expenses of the Committee on Valuation of Securities of the National Association of Insurance Commissioners, in order to make use of the analyses, reports, and information developed by said committee for the valuation of such securities and the determination of their amortizability, the commissioner shall periodically obtain from said committee a verified budget estimate of the receipts and of the expenses to be incurred by said committee for a stated period, not exceeding one year, with appropriate explanations of the estimates therein contained.
If the commissioner shall be satisfied as to the reasonableness of such budget estimate, he shall determine the portion of the funds therein prescribed to be assessed in any one year as hereinafter provided, by deducting from such budget estimate, or from the sum of two hundred and fifty thousand dollars, whichever is less, any amount receivable by said committee from other states whose laws do not substantially conform to the method of assessment herein provided, and applying to the remainder the proportion which the total investments in securities of domestic life companies bears to the total investments in securities of life companies domiciled in this and other states whose laws authorize and require assessments on substantially the same basis as herein provided.
The commissioner shall annually thereafter, by notice stating the method of computation thereof, assess the amount to be paid on account of such expenses pro rata upon all domestic life companies in the proportion which the total investments in securities of each such company bears to the total investments in securities of all such companies. The total investments in securities of any life company for purposes of this section shall be the total value of stocks and bonds reported as admitted assets in its annual statement last filed prior to such assessment with the commissioner or other supervisory official of its state of domicile.
Upon receipt of such notice, each domestic life company shall within thirty days pay said assessment to the commissioner. The commissioner shall deposit all moneys collected by him pursuant to this section in an account, entitled ''Commissioner of Insurance: Securities Valuation Expense Account'', in a bank or a trust company in the city of Boston designated by the state treasurer. Such moneys shall be paid by the commissioner to the Committee on Valuation of Securities of the National Association of Insurance Commissioners after audit by the state treasurer.
The commissioner shall require annually and at such other times as he may deem it necessary or advisable a duly authorized audit of receipts and disbursements and statement of assets and liabilities, showing the details of the financial operations of said committee.