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.

(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 s ale 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.