Tex. Ins. Code § 548.104 · Subchapter B. REQUIRED ACTS; PROHIBITIONS
SALE OR NONDELIVERY OF CERTAIN EQUITY SECURITIES PROHIBITED.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) An insider may not directly or indirectly sell an equity security of the domestic stock insurer if the insider selling the security or the insider's principal:
(1) does not own the security; or
(2) owns the security, but does not:
(A) deliver the security before the 21st day after the date of the sale; or
(B) deposit the security in the mail or another usual channel of transportation before the sixth day after the date of the sale.
(b) An insider is not considered to have violated Subsection (a)(2) if the insider proves that:
(1) notwithstanding the exercise of good faith, the insider was unable to make a timely delivery or deposit; or
(2) to make a timely delivery or deposit would cause undue inconvenience or expense.
(c) Subsection (a) does not apply to the sale of:
(1) an exempt security; or
(2) an equity security of a domestic stock insurer that is not held by a dealer in an investment account if the sale:
(A) is in the ordinary course of the dealer's business; and
(B) is incident to the establishment or maintenance by the dealer of a primary or secondary market, other than on an exchange, as defined by the federal Securities Exchange Act, for the security.
(d) The commissioner may adopt rules implementing Subsection (c) in the manner prescribed by Section 548.103(f).
Notes and commentary — not statutory text
History
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.548.htm
- Text hash
- sha256 7f6cd583d62c444d097dd7b6370c27a6023f5ee5c43108ddd6ff2106cbc5a975
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
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