PARRIS N. GLENDENING, Governor

Ch. 36

(I)       DIRECTLY OR INDIRECTLY THE BENEFICIAL OWNER OF MORE
THAN 10% OF ANY CLASS OF EQUITY SECURITY OF THE DOMESTIC STOCK INSURER;
OR

(II)     A DIRECTOR OR OFFICER OF THE DOMESTIC STOCK INSURER.

(2) WITHIN 10 DAYS AFTER THE END OF EACH CALENDAR MONTH IN
WHICH THERE HAS BEEN A CHANGE IN OWNERSHIP OF SECURITIES THAT ARE
SUBJECT TO REPORTING UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE PERSON
WHOSE OWNERSHIP HAS CHANGED SHALL FILE WITH THE COMMISSIONER, IN THE
FORM THE COMMISSIONER REQUIRES, A STATEMENT INDICATING THE PERSON'S
OWNERSHIP AT THE END OF THE CALENDAR MONTH AND THE CHANGES IN
OWNERSHIP THAT HAVE OCCURRED DURING THAT CALENDAR MONTH.

(E) PROFIT FROM SALE OF EQUITY SECURITY HELD LESS THAN 6 MONTHS.

(1)      THE PURPOSE OF THIS SUBSECTION IS TO PREVENT THE UNFAIR USE
OF INFORMATION THAT MAY HAVE BEEN OBTAINED BY A BENEFICIAL OWNER,
DIRECTOR, OR OFFICER OF A DOMESTIC STOCK INSURER BECAUSE OF THAT
PERSON'S RELATIONSHIP TO THE DOMESTIC STOCK INSURER.

(2)      (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH, ANY PROFIT REALIZED BY A BENEFICIAL OWNER, DIRECTOR, OR
OFFICER OF A DOMESTIC STOCK INSURER FROM A PURCHASE AND SALE, OR A SALE
AND PURCHASE, OF AN EQUITY SECURITY OF THE DOMESTIC STOCK INSURER
WITHIN A PERIOD OF LESS THAN 6 MONTHS INURES TO AND IS RECOVERABLE BY
THE DOMESTIC STOCK INSURER, REGARDLESS OF THE INTENTION OF THE
BENEFICIAL OWNER, DIRECTOR, OR OFFICER IN ENTERING INTO THE TRANSACTION
OF HOLDING THE EQUITY SECURITY PURCHASED OR OF NOT REPURCHASING THE
SECURITY SOLD FOR MORE THAN 6 MONTHS.

(II) AN EQUITY SECURITY ACQUIRED IN GOOD FAITH IN
CONNECTION WITH A DEBT CONTRACTED PRIOR TO THE 6-MONTH PERIOD IS NOT
SUBJECT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH.

(3)      (I) A SUIT TO RECOVER ANY PROFIT OBTAINED IN VIOLATION OF
THIS SUBSECTION MAY BE BROUGHT IN A COURT OF COMPETENT JURISDICTION BY:

1.        THE DOMESTIC STOCK INSURER; OR

2.        THE OWNER OF ANY SECURITY OF THE DOMESTIC STOCK
INSURER IN THE NAME AND ON BEHALF OF THE DOMESTIC STOCK INSURER, IF THE
DOMESTIC STOCK INSURER FAILS OR REFUSES TO BRING THE SUIT WITHIN 60 DAYS
AFTER A REQUEST TO DO SO OR FAILS TO PROSECUTE THE SUIT DILIGENTLY.

(II) A SUIT UNDER THIS SUBSECTION MAY NOT BE BROUGHT MORE
THAN 2 YEARS AFTER THE DATE THE PROFIT WAS REALIZED.

(4)      THIS SUBSECTION MAY NOT BE CONSTRUED TO APPLY TO:

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