Any acquisition of shares of stock, other than stock acquired upon the exercise of an option, warrant or right, pursuant to a stock bonus, profit sharing, retirement, incentive, thrift, savings or similar plan, or any acquisition of a qualified or a restricted stock option pursuant to a qualified or a restricted stock option plan, or a stock option pursuant to an employee stock purchase plan, by a director or officer of an insurer issuing such stock or stock option shall be exempt from the operation of SDCL 58-5-71 to 58-5-73, inclusive, if the plan has been approved, directly or indirectly by the:

1. (1) Affirmative votes of the holders of a majority of the securities of such insurer present, or represented, and entitled to vote at a meeting duly held in accordance with the applicable laws of the state of South Dakota; or
2. (2) Written consent of the holders of a majority of the securities of such insurer entitled to vote;
3. (3) Such vote or written consent (subdivisions 20:06:04:05(1) and (2)) is to be solicited substantially in accordance with chapter 20:06:03. For the purposes of this subdivision, the term "insurer" includes a predecessor corporation if the plan or obligations to participate thereunder were assumed by the insurer in connection with the succession.

Source: 4 SDR 6, effective August 9, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986.

General Authority: SDCL 58-5-73 , 58-5-77.

Law Implemented: SDCL 58-5-71 to 58-5-73.