D.C. Mun. Regs. tit. 26, r. 26-A1400

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 26-A1400 - SECURITIES "HELD OF RECORD"

1400.1

For the purposes of determining whether the equity securities of an insurer are "held of record" by one hundred (100) or more persons, securities shall be considered to be "held of record" by each person who is identified as the owner of such securities on records of security holders maintained by or on behalf of the insurer, subject to the following conditions:

(a) In cases where the records of security holders have not been maintained in accordance with accepted practice, or any additional person(s) who is identified as an owner on such records, shall be included as a "holder of record", if the records were maintained in accordance with accepted practice;

(b) Securities identified as "held of record" by a corporation, a partnership, a trust whether or not the trustees are named, or other organization shall be included as so held by one person;

(c) Securities identified as "held of record" by one or more persons as trustees, executors, guardians, custodians or in other fiduciary capacities with respect to a single trust, estate or account shall be included as "held of record" by one person;

(d) Securities held by two (2) or more persons as co-owners shall be included as held by one (1) person;

(e) Each outstanding unregistered or bearer of certificate shall be included as "held of record" by a separate person, except to the extent that, if the insurer can establish that the securities were registered, he or she shall be "held of record" under the provisions of this rule by a lesser number of persons; and

(f) Securities registered in substantially similar names where the insurer has reason to believe because of the address or other indications that the names represent the same person, may be included as "held of record" by one person.

1400.2

Notwithstanding § 1400.1, the following shall apply:

(a) Securities held to the knowledge of the insurer, subject to a voting trust, deposit agreement or similar arrangement shall be included as "held of record" by the record holders of the voting trust certificates, certificates of deposit, receipts or similar evidences of interest in such securities; provided however, that the insurer may rely in good faith on the information as is received in response to its request from a non-affiliated insurer of the certificates or evidences of interest; and

(b) If the insurer knows or has reason to know that the form of holding securities of record is used primarily to circumvent the provisions of the Act, the beneficial owners of the securities shall be considered to be the record owners.

D.C. Mun. Regs. tit. 26, r. 26-A1400