New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 9 - INSIDER TRADING OF DOMESTIC STOCK INSURANCE COMPANY EQUITY SECURITIES › Section 11:2-9.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
"Act" means 17:17B-1 et seq.
"Class" includes all securities of an insurer which are of substantially similar character, and the holders of which enjoy substantially similar rights and privileges.
"Equity security" means:
1. Any stock or similar security,
2. Any voting trust certificate or certificate of deposit for such a security;
3. Any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security;
4. Any such warrant or right.
"Insurer" means any domestic stock insurance company with an equity security subject to the provisions of 17:17B-1 et seq.
"Officer" means a president, vice president, treasurer, actuary, secretary, controller, or any other person who performs such functions for the insurer which correspond to those performed by the foregoing officers.
Securities "held of record"
1. For the purpose of determining whether the equity securities of an insurer are "held of record" by 100 or more persons, securities shall be deemed to be "held of record" by each person who is identified as the owner of such securities on records of security holders maintained by or on behalf of the insurer, subject to the following:
i. In any case where the records of security holders have not been maintained in accordance with accepted practice, any additional person who would be identified as such an owner on such records if they had been maintained in accordance with accepted practice shall be included as a holder of record.
ii. Securities identified as held of record by a corporation, a partnership, a trust (whether or not the trustees are named), or other organization, shall be included as so held by one person.
iii. Securities identified as held of record by one or more persons as trustees, executors, guardians, custodians or in other fiduciary capacities with respect to a single trust, estate or account, shall be included as held of record by one person.
iv. Securities held by two or more persons as co-owners shall be included as held by one person.
v. Each outstanding unregistered or bearer certificate shall be included as held of record by a separate person, except to the extent that the insurer can establish that, if such securities were registered under the provisions of this rule, they would be held of record by a lesser number of persons.
vi. Securities registered in substantially similar names, where the insurer has reason to believe because of the address or other indications that such names represent the same person, may be included as held of record by one person.
2. Notwithstanding paragraph 1 above:
i. Securities held, to the knowledge of the insurer, subject to a voting trust, deposit agreement or similar arrangement, shall be included as held of record by the record holders of the voting trust certificates, certificates of deposit, receipts or similar evidence of interest in such securities; provided however, that the insurer may rely in good faith on such information as is received in response to its request from a nonaffiliated insurer of the certificates or evidences of interest.
ii. If the insurer knows or has reason to know that the form of holding securities of record is used primarily to circumvent the provisions of the Act, the beneficial owners of such securities shall be deemed to be the record owners thereof.