20-454. Programs for purchase by policyholders
of securities of companies not engaged in insurance
Notwithstanding the provisions of section 20-452 and notwithstanding any other
provision of law, domestic life insurers, whether of the stock, mutual, fraternal or
limited capital stock type that on January 1, 1955 are engaged pursuant to the
requirements of title 44, chapter 12 in a program whereby the holders of their life
insurance policies are offered the right from time to time to buy for cash or to exchange
dividends on such policies or other policy values resulting therefrom for securities in
domestic corporations neither engaged in nor organized to engage in the insurance
business shall be permitted, subject to the requirements of title 44, chapter 12, to
continue to engage in such program notwithstanding the adoption of this title, but no
such insurer shall so engage unless the right to buy or the dividends or other policy
values subject to exchange result from ownership of or are payable on account of a policy
that from its inception is or that, within a period of not to exceed six years from its
issue date, becomes a life insurance policy on a permanent plan other than term. From and
after being placed on such permanent plan, every such policy shall be in full compliance
with sections 20-1231 and 20-1231.01 (standard nonforfeiture law), computed as from the
date of being placed on such permanent plan. No such program shall be engaged in by the
insurer subsequent to January 1, 1960, except that any such insurer may, subject to title
44, chapter 12, cause to be delivered stock in such corporation for an indefinite period
subsequent to such limiting date if the right to acquire the stock arises as a result of
a policy actually issued and delivered prior to such date.
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