NET ASSETS DEFINED; RULES

(a) A company's "net assets" consist of the company's funds that are available for the payment of a company's obligations in this state, including: (1) uncollected premiums that are not more than three months past due and deferred premiums on policies actually in force, after the deduction of: (A) all unpaid losses and claims; (B) all claims for losses; and (C) all other debts, exclusive of capital stock; and (2) if the total value of the equipment exceeds $2,000, the value of all electronic machines that comprise a data processing system or systems and of all other office equipment, furniture, machines, and labor-saving devices purchased for and used in connection with the business of the insurance company to the extent that the total actual cash market value of those assets is less than 10 percent of the other admitted assets of the company. (b) The commissioner may adopt rules defining electronic machines and systems, office equipment, furniture, machines, and labor-saving devices described by Subsection (a) and stating the maximum period for which each class of equipment may be amortized.