23 CAR § 2-601 – Arbitrage transactions

(a)
1. (1) It shall be unlawful for any director or officer of an insurer to effect any foreign or domestic arbitrage transaction in any equity security of such insurer unless he or she shall:
  1. (A) Include such transaction in the statements required by Acts 1965, No. 107, § 1; and
  2. (B) Account to such insurer for the profits arising from such transaction, as provided in Section 2 thereof.
2. (2) The provisions of Section 3 shall not apply to such arbitrage transactions.
(b) The provisions of the act shall not apply to any bona fide foreign or domestic arbitrage transaction insofar as it is effected by any person other than such director or officer of the insurer.