§ 23-69-109 — Pecuniary interest of officers, directors, employees, etc

(a) Any officer or director, any member of any committee, or any employee of a domestic insurer who is charged with the duty of investing or handling the insurer's funds: (1) Shall not deposit or invest the funds except in the insurer's corporate name; (2) Shall not borrow the funds of the insurer; (3) Shall not be pecuniarily interested in any loan, pledge of deposit, security, investment, sale, purchase, exchange, reinsurance, or other similar transaction or property of the insurer except as a stockholder or member; (4) Shall not take or receive to his or her own use any fee, brokerage commission, gift, or other consideration for or on account of any transaction made by or on behalf of the insurer. (b) No insurer shall guarantee any financial obligation of any of its officers or directors. (c) This section shall not prohibit a director or officer, member of a committee, or employee from becoming a policyholder of the insurer and enjoying the usual rights so provided for its policyholders. (d) The Insurance Commissioner may, by rule from time to time, define and permit additional exceptions to the prohibition contained in subsection (a) of this section solely to enable payment of reasonable compensation to a director who is not otherwise an officer or employee of the insurer, or to a corporation or firm in which a director is interested, for necessary services performed or sales or purchases made to or for the insurer in the ordinary course of the insurer's business and in the usual private, professional, or business capacity of the director or the corporation or firm.

Legislative History

Amended by Act 2019, No. 315,§ 2683, eff. 7/24/2019. Acts 1959, No. 148, § 488; A.S.A. 1947, § 66-4236.