CA-5.1.33
The determination of the amount of long-term liabilities must take into account the nature and term of the assets representing those liabilities and the value placed upon them and must include prudent provision against the effects of possible future changes in the value of the assets on:
(a) The ability of the company to meet its obligations arising under contracts for long-term business as they arise, and
(b) The adequacy of the assets to meet the liabilities as determined by this Chapter.
Amended: January 2007