California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 5 - Stock Insurers-Corporate Affairs
Article 2 - Insider Trading
Section 2682.9 - Ownership of Securities Held in Trust

(a) Beneficial ownership of a security shall include:

(b) Except as provided in paragraph (c) hereof, beneficial ownership of securities solely as a settlor or beneficiary of a trust shall be exempt from the provisions of Section 1104.3 where less than twenty percent in market value of the securities having a readily ascertainable market value by such trust, determined as of the end of the preceding fiscal year of the trust, consists of equity securities with respect to which reports would otherwise be required. Exemption is likewise accorded from Section 1104.3 with respect to any obligation which would otherwise be imposed solely by reason of ownership as settlor or beneficiary of securities held in trust, where the ownership, acquisition, or disposition of such securities by the trust is made without prior approval by the settlor or beneficiary. No exemption pursuant to this subsection shall, however, be acquired or lost solely as a result of changes in the value of the trust assets during any fiscal year or during any time when there is no transaction by the trust in the securities otherwise subject to the reporting requirements of Section 1104.2.

(c) In the event that 10 percent of any class of any equity security of an insurer is held in trust, that trust and the trustees thereof as such shall be deemed a person required to file the reports required by Section 1104.2, and on the forms prescribed by Section 2682.3 hereof, and transactions therein shall be subject to Section 1104.3.

(d) The forms of statements prescribed by Section 2682.3 hereof do not require that more than one report be filed to report any holdings or with respect to any transaction in securities held by a trust, regardless of the number of officers, directors or ten percent stockholders who are either trustees, settlors, or beneficiaries of a trust, provided that the report filed shall disclose the names of all trustees, settlors and beneficiaries who are officers, directors or 10 percent stockholders. A person having an interest only as a beneficiary of a trust shall not be required to file any such report so long as that person relies in good faith upon an understanding that the trustee of such trust will file whatever reports might otherwise be required of such beneficiary.

(e) As used in this section the "immediate family" of a trustee means:

(f) In determining, for the purposes of the statements prescribed by Section 2682.3 hereof, whether a person is the beneficial owner, directly or indirectly, of more than 10 percent of any class of any equity security, the interest of such person in the remainder of a trust shall be excluded from the computation.

(g) No person shall be subject to Section 1104.3, whether or not that person is otherwise subject to the reporting requirements of Section 1104.2, with respect to that person's indirect interest in portfolio securities held by:

(h) Nothing in this section shall be deemed to impose any duties or liabilities with respect to any transaction or holding prior to its effective date.