Connecticut Administrative Code
Title 38a - Insurance Department
124 - Insider Trading of Domestic Stock Insurance Company Equity Securities
Section 38a-124-6 - Exemption from section 38a-119 of certain transactions in which securities are received by redeeming other securities
Current through March 14, 2024
Any acquisition of an equity security, other than a convertible security or right to purchase a security, by a director or officer of the issuer of such security shall be exempt from the operation of section 38a-119 of the 1965 supplement to the general statutes if:
(a) The equity security is acquired by way of redemption of another security of an issuer substantially all of whose assets other than cash, or government bonds, consist of securities of the issuer of the equity security so acquired, and which (1) represented substantially and in practical effect a stated or readily ascertainable amount of such equity security, (2) had a value which was substantially determined by the value of such equity security and (3) conferred upon the holder the right to receive such equity security without the payment of any consideration other than the security redeemed;
(b) No security of the same class as the security redeemed was acquired by the director or officer within six months prior to such redemption or is acquired within six months after such redemption;
(c) The issuer of the equity security acquired has recognized the applicability of subdivision (a) of this rule by appropriate corporation action.
