23 CAR § 24-405. Use of assets supporting the interest maintenance reserve and the asset valuation reserve

(a)(1) An appropriate allocation of assets in the amount of the interest maintenance reserve (IMR), whether positive or negative, shall be used in any asset adequacy analysis. (2)(A) Analysis of risks regarding asset default may include an appropriate allocation of assets supporting the asset valuation reserve (AVR). (B) These AVR assets may not be applied for any other risks with respect to reserve adequacy. (C) Analysis of these and other risks may include assets supporting other mandatory or voluntary reserves available to the extent not used for risk analysis and reserve support. (b)(1) The amount of the assets used for the AVR shall be disclosed in the table of reserves and liabilities of the opinion and in the memorandum. (2) The method used for selecting particular assets or allocated portions of assets shall be disclosed in the memorandum.