31.04.10.01

.01 General.

The purchase and sale of equity securities issued by domestic stock insurance companies or their affiliates by the beneficial owners, directors, or officers of these companies are subject to regulation under these regulations. In respect of "short-swing" purchase and sale, or sale and purchase, of equity securities by persons regulated by Insurance Article, §3-119, Annotated Code of Maryland, the basic purpose is to prevent "insiders" from retaining profits realized on the equity securities, usually stocks, on the basis of information not available to others but Insurance Article, §3-119, Annotated Code of Maryland, is so worded as to apply whether or not in a particular transaction the "insider" has any "inside" information and without consideration of any intention he may have as to holding the security bought or repurchasing the security sold.