§ 26-25-104 — Recovery of profits from certain sales and purchases of equity securities

(a) For the purpose of preventing the unfair use of
information obtained by the beneficial owner, director or
officer because of his relationship to the insurer, any profit
the beneficial owner, director or officer realizes from any
purchase and sale, or any sale and purchase, of any equity
security of the insurer within any period of less than six (6)
months, unless the security is acquired in good faith in
connection with a debt previously contracted, inures to and is
recoverable by the insurer, even if it is the intention of the
beneficial owner, director or officer in entering into the
transaction of holding the security purchased or of not
repurchasing the security sold for a period exceeding six (6)
months from the date of the purchase or sale, as the case may
be.
(b) Suit to recover the profit may be instituted in any
court of competent jurisdiction by the insurer, or by the owner
of any of the insurer's security in the name and in behalf of
the insurer, if the insurer fails to bring suit within sixty
(60) days from the date of request to do so or fails diligently
to prosecute the suit thereafter. No suit to recover shall be
brought more than two (2) years from the date the profit is
realized.
(c) This section does not apply to any transaction:
(i) If the beneficial owner is not the beneficial
owner both at the time of the purchase and sale, or the sale and
purchase, of the security involved; or
(ii) Which the commissioner by rule and regulation
exempts as not included within the purpose of this section.