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INSURANCE Domestic Stock and Mutual Insurers: Create Exceptions to Prohibited Transactions for Directors and Employees; Permit Transferability of Insurable Interests

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The Act allows officers, directors, committee members, and employees of an insurance company to engage in transactions with the insurance company if a written request is given to the Insurance Commissioner’s office and the request is not denied. The Act also changes the law relating to a corporation’s insurable interests. If a corporation is merged, sold, or otherwise becomes part of another corporation, the new corporation may retain the former corporation’s insurable interests.