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304.26-040 Profits realized by beneficial owner, director, or officer from
purchase -- Sale of equity securities recoverable by insurer -- Limitation
of actions -- Exceptions.
(1)
(2)
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For the purpose of preventing the unfair use of information which may have
been obtained by such beneficial owner, director, or officer by reason of his or
her relationship to such insurer, any profit realized by him or her from any
purchase and sale, or any sale and purchase, of any equity security of such
insurer within any period of less than six (6) months, unless such security was
acquired in good faith in connection with a debt previously contracted, shall
inure to and be recoverable by the insurer, irrespective of any intention on the
part of such beneficial owner, director, or officer in entering into such
transaction or holding the security purchased or of not repurchasing the
security sold for a period exceeding six (6) months.
Suit to recover such profit may be instituted at law or in equity in any court of
competent jurisdiction by the insurer, or by the owner of any security of the
insurer in the name and in behalf of the insurer if the insurer fails or refuses to
bring such suit within sixty (60) days after request or fails diligently to prosecute
the same thereafter; but no such suit shall be brought more than two (2) years
after the date such profit was realized.
This section shall not be construed to cover any transaction where such
beneficial owner was not such both at the time of the purchase and sale, or the
sale and purchase, of the security involved, or any transaction or transactions
which the commissioner by rules and regulations may exempt as not
comprehended within the purpose of this section.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1369, effective July 15, 2010. -Created 1970 Ky. Acts ch. 301, subtit. 26, sec. 4, effective June 18, 1970.
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