New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 2 - INSURANCE GROUP
Subchapter 9 - INSIDER TRADING OF DOMESTIC STOCK INSURANCE COMPANY EQUITY SECURITIES
Section 11:2-9.18 - Exemption from N.J.S.A 17:17B-2-certain transactions involving exchange of similar securities
Universal Citation: NJ Admin Code 11:2-9.18
Current through Register Vol. 56, No. 24, December 18, 2024
(a) Any acquisition or disposition of securities made in an exchange of shares of a class (or series thereof) of stock of an insurer for an equivalent number of shares of another class (or series thereof) of stock of the same insurer, pursuant to a right of conversion under the terms of the insurer's charter or other governing instruments, shall be exempt from the operation of N.J.S.A. 17:17B-2 if:
1. The shares surrendered and those acquired
in exchange therefor evidence substantially the same rights and privileges
except that, pursuant to the provisions of the insurer's charter or other
governing instruments, the board of directors may declare and pay a lesser
dividend per share on shares of the class surrendered than on shares of the
class acquired in exchange therefor, or may declare and pay no dividend on
shares of the class surrendered; and
2. The transaction was effected in
contemplation of a public sale of the shares acquired in the exchange;
provided, that this section shall not be construed to exempt from the operation
of N.J.S.A. 17:17B-2 any purchase or sale of
shares of the class surrendered, and any sale or purchase of shares of the
class acquired in the exchange (otherwise than in the transaction of exchange
exempted by this section, within a period of less than six months.
Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
