IC 27-2-10
    Chapter 10. Equity Securities of Insurance Companies

IC 27-2-10-1
Statement of equity ownership and changes in holdings
    Sec. 1. Every person who is directly or indirectly the beneficialowner of more than ten per cent (10%) of any class of any equitysecurity of a domestic stock insurance company, or who is a directoror an officer of such company, shall file in the office of the insurancecommissioner of Indiana on or before December 31, 1965, or withinten (10) days after he becomes such beneficial owner, director, orofficer, a statement, in such form as the insurance commissioner mayprescribe, of the amount of all equity securities of such company ofwhich he is the beneficial owner, and within ten (10) days after theclose of each calendar month thereafter, if there has been a changein such ownership during such month, shall file in the office of theinsurance commissioner a statement, in such form as thecommissioner may prescribe, indicating his ownership at the close ofthe calendar month and such changes in his ownership as haveoccurred during such calendar month.
(Formerly: Acts 1965, c.5, s.1.)

IC 27-2-10-2
Accounting for profits from short term equity trading; personsentitled to bring action; limitation of actions
    Sec. 2. For the purpose of preventing the unfair use of informationwhich may have been obtained by such beneficial owner, director, orofficer by reason of his relationship to such domestic stock insurancecompany, any profit realized by him from any purchase and sale, orany sale and purchase, of any equity security of such company withinany period of less than six (6) months, unless such security wasacquired in good faith in connection with a debt previouslycontracted, shall inure to and be recoverable by the company,irrespective of any intention on the part of such beneficial owner,director, or officer in entering into such transaction of holding thesecurity purchased or of not repurchasing the security sold for aperiod exceeding six (6) months. Suit to recover such profit may beinstituted at law or in equity in any court of competent jurisdictionby the company, or by the owner of any security of the company inthe name and in behalf of the company if the company shall fail orrefuse to bring such suit within sixty (60) days after request or shallfail diligently to prosecute the same thereafter; but no such suit shallbe brought more than two (2) years after the date such profit wasrealized. This section shall not be construed to cover any transactionwhere such beneficial owner was not such both at the time of thepurchase and sale, or the sale and purchase, of the security involved,or any transaction or transactions which the insurance commissionerby rules and regulations may exempt as not comprehended within thepurpose of this section.
(Formerly: Acts 1965, c.5, s.2.)
IC 27-2-10-3
Short sales; time for delivery of securities sold
    Sec. 3. It shall be unlawful for any such beneficial owner,director, or officer, directly or indirectly, to sell any equity securityof such domestic insurance company if the person selling the securityor his principal (i) does not own the security sold, or (ii) if owningthe security, does not deliver it against such sale within twenty (20)days thereafter, or does not within five (5) days after such saledeposit it in the mails or other usual channels of transportation; butno person shall be deemed to have violated this section if he provesthat notwithstanding the exercise of good faith he was unable tomake such delivery or deposit within such time, or that to do sowould cause undue inconvenience or expense.
(Formerly: Acts 1965, c.5, s.3.)

IC 27-2-10-4
Exemption of dealers
    Sec. 4. The provisions of section 2 of this chapter shall not applyto any purchase and sale, or sale and purchase, and the provisions ofsection 3 of this chapter shall not apply to any sale, of an equitysecurity of a domestic stock insurance company not then ortheretofore held by him in an investment account, by a dealer in theordinary course of his business and incident to the establishment ormaintenance by him of a primary or secondary market (otherwisethan on an exchange as defined in the Securities Exchange Act of1934, 15 U.S.C. 78a et seq.) for such security. The insurancecommissioner may, by such rules as he deems necessary orappropriate and in the public interest, define and prescribe terms andconditions with respect to equity securities held in an investmentaccount and transactions made in the ordinary course of business andincident to the establishment or maintenance of a primary orsecondary market.
(Formerly: Acts 1965, c.5, s.4.) As amended by P.L.252-1985,SEC.132.

IC 27-2-10-5
Exemption of arbitrage transactions
    Sec. 5. The provisions of sections 1, 2, and 3 of this chapter shallnot apply to foreign or domestic arbitrage transactions unless madein contravention of such rules as the insurance commissioner mayadopt in order to carry out the purposes of this chapter.
(Formerly: Acts 1965, c.5, s.5.) As amended by P.L.252-1985,SEC.133.

IC 27-2-10-6
"Equity security" defined
    Sec. 6. The term "equity security", when used in this chapter,means any stock or similar security, or any security convertible, withor without consideration, into such a security, or carrying anywarrant or right to subscribe to or purchase such a security, or any

such warrant or right, or any other security which the insurancecommissioner shall deem to be of similar nature and considernecessary or appropriate, by such rules as he may prescribe in thepublic interest or for the protection of investors, to treat as an equitysecurity.
(Formerly: Acts 1965, c.5, s.6.) As amended by P.L.252-1985,SEC.134.

IC 27-2-10-7
Exemption of sale of registered securities or securities in closelyheld corporation
    Sec. 7. The provisions of sections 1, 2, and 3 of this chapter shallnot apply to transactions in equity securities of a domestic stockinsurance company if:
        (a) such securities shall be registered, or shall be required to beregistered, pursuant to section 12 of the Securities ExchangeAct of 1934 (15 U.S.C. 781), as amended; or
        (b) such domestic stock insurance company shall not have anyclass of its equity securities held of record by one hundred(100) or more persons on the last business day of the year nextpreceding the year in which equity securities of the companywould be subject to the provisions of sections 1, 2, and 3 of thischapter except for the provisions of this subdivision.
(Formerly: Acts 1965, c.5, s.7.) As amended by P.L.252-1985,SEC.135; P.L.3-1989, SEC.153.

IC 27-2-10-8
Powers of commissioner
    Sec. 8. The insurance commissioner shall have the power to makesuch rules as may be necessary for the execution of the functionsvested in him by sections 1 through 7 of this chapter and may forsuch purpose classify domestic stock insurance companies,securities, and other persons or matters within his jurisdiction. Noprovision of sections 1, 2, and 3 of this chapter imposing any liabilityshall apply to any act done or omitted in good faith in conformitywith any rule of the insurance commissioner, notwithstanding thatsuch rule may, after such act or omission, be amended or rescindedor determined by judicial or other authority to be invalid for anyreason.
(Formerly: Acts 1965, c.5, s.8.) As amended by P.L.252-1985,SEC.136.

IC 27-2-10-9
Construction of act
    Sec. 9. This chapter shall be construed as supplemental to IC 27-1.
(Formerly: Acts 1965, c.5, s.9.) As amended by P.L.252-1985,SEC.137; P.L.11-1987, SEC.30.