§ 21.33. Securities received by redeeming other securities.
Any acquisition of an equity security, other than a convertible security of right to purchase a security director or officer of the insurer issuing the security shall be exempt from the operation of section 302.1(2) of the act (40 P. S. § 422.1(2)) provided all of the following apply:
(1) The equity security is acquired by way of redemption of another security of an insurer substantially all of whose assets other than cash (or Government bonds) consist of securities of the insurer issuing the equity security so acquired, and which:
(i) Represented substantially and in practical effect a stated or readily ascertainable amount of such equity security.
(ii) Had a value which was substantially determined by the value of such equity security.
(iii) Conferred upon the holder the right to receive the equity security without the payment of any consideration other than the security redeemed.
(2) No security of the same class as the security redeemed was acquired by the director or officer within 6 months prior to the redemption or is acquired within 6 months after the redemption.
(3) The insurer issuing the equity security acquired has recognized the applicability of paragraph (1) by appropriate corporate action.
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