Insider Trading of Equity Securities

KRS tit. XXV, ch. 304, subtit. 26

in effect

KRS 304.26-010 Scope of subtitle

304.26-010. Scope of subtitle This subtitle shall apply only with respect to securities issued by domestic stock insurers. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 26, sec. 1, effective June 18, 1970.

KRS 304.26-020 "Equity security" defined

304.26-020. "Equity security" defined The term "equity security" when used in this subtitle means: (1) Any stock or similar security; or (2) Any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or (3) Any such warrant or right; or (4) Any other security which the commissioner deems to be of similar nature and considers necessary or appropriate, by such rules and regulations as the commissioner may prescribe in the public interest or for the protection of investors, to treat as an equity security. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1367, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 26, sec. 2, effective June 18, 1970.

KRS 304.26-030 Beneficial owner, director, and officer required to file statements concerning equity securities with commissioner

304.26-030. Beneficial owner, director, and officer required to file statements concerning equity securities with commissioner Every person who is directly or indirectly the beneficial owner of more than ten percent (10%) of any class of any equity security of a domestic stock insurer, or who is a director or an officer of such insurer, shall: (1) File in the office of the commissioner within ten (10) days after he or she becomes such beneficial owner, director, or officer, a statement, in such form as the commissioner may prescribe, of the amount of all equity securities of such insurer of which he or she is the beneficial owner; and (2) Within ten (10) days after the close of each calendar month thereafter, if there has been a change in such ownership during such month, file in the office of the commissioner a statement, in such form as the commissioner may prescribe, indicating his or her ownership at the close of the calendar month and such changes in his or her ownership as have occurred during such calendar month. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1368, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 26, sec. 3, effective June 18, 1970.

KRS 304.26-040 Profits realized by beneficial owner, director, or officer from purchase - - Sale of equity securities recoverable by insurer -- Limitation of actions -- Exceptions

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) 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. (2) 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. (3) 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.

KRS 304.26-050 Unlawful sales of equity securities by beneficial owner, director, or officer

304.26-050. Unlawful sales of equity securities by beneficial owner, director, or officer (1) It is unlawful for any such beneficial owner, director, or officer, directly or indirectly, to sell any equity security of such insurer if the person selling the security or his or her principal: (a) Does not own the security sold; or (b) If the owner of the security does not deliver it against such sale within twenty (20) days thereafter, or does not within five (5) days after such sale deposit it in the mails or other usual channels of transportation, but no person shall be deemed to have violated this section if he or she proves that notwithstanding the exercise of good faith he or she was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense. (2) The commissioner shall establish, and from time to time amend, regulations with regard to proxies, consents, or authorizations in respect of securities issued by any domestic stock insurer, such regulations to conform to those prescribed by the National Association of Insurance Commissioners. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1370, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 26, sec. 5, effective June 18, 1970.

KRS 304.26-060 Investment accounts and transactions

304.26-060. Investment accounts and transactions (1) The provisions of KRS 304.26-040 do not apply to any purchase and sale, or sale and purchase, and the provisions of subsection (1) of KRS 304.26-050 do not apply to any sale, of an equity security of a domestic stock insurer not then or theretofore held by him or her in an investment account, by a dealer in the ordinary course of his or her business and incident to the establishment or maintenance by him or her of a primary or secondary market (otherwise than on an exchange as defined in the Securities Exchange Act of 1934) for such security. (2) The commissioner may, by such rules and regulations as he or she deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1371, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 26, sec. 6, effective June 18, 1970.

KRS 304.26-070 Foreign or domestic arbitrage transactions

304.26-070. Foreign or domestic arbitrage transactions The provisions of KRS 304.26-030 and 304.26-040 and subsection (1) of KRS 304.26- 050, do not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the commissioner may adopt in order to carry out the purposes of this subtitle. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1372, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 26, sec. 7, effective June 18, 1970.

KRS 304.26-080 Inapplicability of KRS 304.26-030 to 304.26-050, inclusive, to equity securities of domestic stock insurers

304.26-080. Inapplicability of KRS 304.26-030 to 304.26-050, inclusive, to equity securities of domestic stock insurers The provisions of KRS 304.26-030 to 304.26-050, inclusive, do not apply to equity securities of a domestic stock insurer if: (1) Such securities are registered, or are required to be registered, pursuant to Section 12 of the Securities Exchange Act of 1934, as amended; or (2) Such domestic stock insurer has not any class of its equity securities held of record by one hundred (100) or more persons on the last business day of the year next preceding the year in which equity securities of the insurer would be subject to the provisions of KRS 304.26-030 to 304.26-050, inclusive, except for the provisions of this subsection. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 26, sec. 8, effective June 18, 1970.

KRS 304.26-090 Regulations of commissioner -- Classification of insurers and securities -- Acts done or omitted in good faith

304.26-090. Regulations of commissioner -- Classification of insurers and securities -- Acts done or omitted in good faith (1) The commissioner shall have the power to make such rules and regulations as may be necessary for the execution of the functions vested in him or her by KRS 304.26- 030 to 304.26-080, inclusive, and may for such purpose classify domestic stock insurers, securities and other persons or matters within his or her jurisdiction. (2) No provision of KRS 304.26-030 to 304.26-050, inclusive, imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule or regulation of the commissioner, notwithstanding that such rule or regulation may, after such act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1373, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 26, sec. 9, effective June 18, 1970.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38740Fetched: 10/20/2026