41-2861. RECOVERY OF PROFITS RESULTING FROM UNFAIR USE OF INFORMATION. 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 relationship to such company, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such company 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 company, irrespective of any intention on the part of such beneficial owner, director or officer in entering into such transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six (6) months. Suit to recover such profit may be instituted at law or in equity in any court of competent jurisdiction by the company, or by the owner of any security of the company in the name and in behalf of the company if the company shall fail or refuse to bring such suit within sixty (60) days after request or shall fail 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. 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 sale and purchase, of the security involved, or any transaction or transactions which the director of the department of insurance by rules and regulations may exempt as not comprehended within the purpose of this section.
History:
[41-2861, added 1965, ch. 294, sec. 2, p. 782.]
Structure Idaho Code
Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS
Section 41-2801 - SCOPE OF CHAPTER.
Section 41-2802 - “STOCK” INSURER — “MUTUAL” INSURER — DEFINITIONS.
Section 41-2803 - APPLICABILITY OF GENERAL CORPORATION STATUTES.
Section 41-2804 - INCORPORATION.
Section 41-2805 - FILING OF ARTICLES.
Section 41-2809 - INVESTIGATION OF PROPOSED ORGANIZATION.
Section 41-2818 - QUALIFICATION FOR INITIAL CERTIFICATE OF AUTHORITY — STOCK INSURERS.
Section 41-2820 - INITIAL QUALIFICATIONS — DOMESTIC MUTUALS.
Section 41-2822 - APPLICATIONS FOR INSURANCE IN FORMATION OF MUTUAL INSURER.
Section 41-2823 - FORMATION OF MUTUALS — TRUST DEPOSIT OF PREMIUMS — ISSUANCE OF POLICIES.
Section 41-2824 - FORMATION OF MUTUALS — FAILURE TO QUALIFY.
Section 41-2825 - ADDITIONAL KINDS OF INSURANCE — MUTUALS.
Section 41-2826 - AMENDMENT OF ARTICLES OF INCORPORATION — STOCK INSURERS.
Section 41-2827 - AMENDMENT OF ARTICLES OF INCORPORATION — MUTUAL INSURER.
Section 41-2828 - INSURANCE BUSINESS EXCLUSIVE.
Section 41-2829 - MEMBERSHIP IN MUTUALS.
Section 41-2830 - BY-LAWS OF MUTUAL.
Section 41-2831 - RIGHTS OF MUTUAL MEMBERS IN GENERAL.
Section 41-2832 - MEETINGS OF MEMBERS OF MUTUAL INSURER.
Section 41-2833 - SPECIAL MEETINGS OF MEMBERS OF MUTUAL INSURER.
Section 41-2834 - VOTING RIGHTS OF MUTUAL MEMBERS.
Section 41-2836 - NOTICE OF CHANGE OF DIRECTORS OR OFFICERS.
Section 41-2837 - PROHIBITED PECUNIARY INTEREST OF OFFICIALS.
Section 41-2838 - MANAGEMENT AND EXCLUSIVE AGENCY CONTRACTS.
Section 41-2839 - HOME OFFICE — RECORDS — ASSETS — PENALTY FOR UNLAWFUL REMOVAL.
Section 41-2840 - VOUCHERS FOR EXPENDITURES.
Section 41-2841 - BORROWED SURPLUS.
Section 41-2842 - PARTICIPATING POLICIES.
Section 41-2843 - DIVIDENDS TO STOCKHOLDERS.
Section 41-2844 - DIVIDENDS TO POLICY HOLDERS.
Section 41-2845 - ILLEGAL DIVIDENDS — PENALTY.
Section 41-2846 - CONTINGENT LIABILITY OF MUTUAL MEMBERS.
Section 41-2847 - LEVY OF CONTINGENT LIABILITY.
Section 41-2848 - ENFORCEMENT OF CONTINGENT LIABILITY.
Section 41-2849 - NONASSESSABLE POLICIES — MUTUAL INSURERS.
Section 41-2850 - NONASSESSABLE POLICIES — REVOCATION OF AUTHORITY.
Section 41-2851 - SOLICITATIONS IN OTHER STATES.
Section 41-2852 - IMPAIRMENT OF CAPITAL OR ASSETS.
Section 41-2853 - ASSESSMENT OF STOCKHOLDERS OR MEMBERS.
Section 41-2854 - MUTUALIZATION OF STOCK INSURERS.
Section 41-2854A - MUTUALIZATION OF SERVICE CORPORATIONS.
Section 41-2855 - CONVERSION OF MUTUAL INSURER TO STOCK INSURER.
Section 41-2856 - MERGERS AND CONSOLIDATIONS OF STOCK INSURERS.
Section 41-2857 - MERGERS AND CONSOLIDATIONS OF MUTUAL INSURERS.
Section 41-2858 - BULK REINSURANCE — MUTUAL INSURERS.
Section 41-2859 - MUTUAL MEMBER’S SHARE OF ASSETS ON LIQUIDATION.
Section 41-2860 - EQUITY SECURITIES OF DOMESTIC STOCK INSURANCE COMPANIES — STATEMENTS OF OWNERSHIP.
Section 41-2861 - RECOVERY OF PROFITS RESULTING FROM UNFAIR USE OF INFORMATION.
Section 41-2862 - RESTRICTIONS ON SALE OF EQUITY SECURITIES.
Section 41-2863 - PURCHASES AND SALES WHICH ARE EXEMPT.
Section 41-2864 - FOREIGN OR DOMESTIC ARBITRAGE TRANSACTIONS EXEMPT.
Section 41-2865 - “EQUITY SECURITY” DEFINED.
Section 41-2866 - CONDITIONS EXEMPTING EQUITY SECURITIES.
Section 41-2867 - RULES AND REGULATIONS.
Section 41-2868 - PROXY REGULATIONS.
Section 41-2870 - DEFINITIONS.
Section 41-2871 - USE OF BOOK-ENTRY SYSTEMS.
Section 41-2872 - HEALTH CARE PROVIDER CONTRACTS — GRIEVANCE PROCEDURE.
Section 41-2873 - BEST PRICE — MOST FAVORED NATIONS CLAUSE PROHIBITED.