670                              LAWS OF MARYLAND                      [CH. 477

"Insurance Code", sub-title "17. Stock and Mutual Insurers", to
follow immediately after Section 250 thereof and to read as follows:

250 A.

(1)  Every person who is directly or indirectly the beneficial
owner of more than ten percent of any class of any equity security
of a domestic stock insurer, or who is a director or an officer of such
company, shall file in the office of the Commissioner on or before the
first day of July, Nineteen Hundred Sixty-five, or within ten days
after he becomes such beneficial owner, director or officer a state-
ment, in such form as the Commissioner may prescribe, of the
amount of all equity securities of such insurer of which he is the
beneficial owner, and within ten days after the close of each calendar
month thereafter, if there has been a change in such ownership
during such month, shall file in the office of the Commissioner a
statement, in such form as the Commissioner may prescribe, indi-
cating his ownership at the close of the calendar month and such
changes in his ownership as have occurred during such calendar
month.

(2)  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 relationship to such insurer, any profit real-
ized by him from any purchase and sale, or any sale and purchase,
of any equity security of such insurer within any period of less than
six months, unless such security was acquired in good faith in con-
nection 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 of holding the security purchased or of not repurchasing
the security sold for a period exceeding six months. 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 shall fail or refuse to bring such suit within sixty days
after request or shall fail diligently to prosecute the same there-
after; but no such suit shall be brought more than two years after
the date such profit was realized. This sub-section shall not be con-
strued 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 sub-section.

(3)  It shall be 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 principal (i) does
not own the security sold, or (ii) if owning the security, does not
deliver it against such sale within twenty days thereafter, or does
not within five 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 sub-section if he proves that notwithstanding the
exercise of good faith he was unable to make such delivery or
deposit within such time, or that to do so would cause undue incon-
venience or expense.

(4) The provisions of sub-section 2 of this section shall not apply
to any purchase and sale, or sale and purchase, and the provisions