| (ii) the total amount of investments authorized by
this paragraph may not exceed the HMO's net worth in excess of its
minimum net worth plus uncovered medical expenses at the time of investment.
(4) Valuation and Amortization. Except where elsewhere
specifically provided, assets must be valued and amortized in compliance
with §11.801 of this title (relating to Accounting Guidance)
as it applies to entities not required to maintain an asset valuation
reserve. If no such standard applies, then the valuation must be at
fair value.
(5) Evidence of ownership. A domestic HMO may demonstrate
ownership of its securities by complying with §7.86 of this title
(relating to Custodied Securities).
(6) Sale of investment. Section 7.4 of this title (relating
to Admissible Assets) applies to investments not specifically allowed
under this subchapter. The commissioner may require any investment
to be sold that would otherwise be authorized under the provisions
of this section if the commissioner finds that the investment would
cause the investing HMO to operate in a condition that is hazardous
to its enrollees, creditors, or the general public.
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