Sec. 31.04.07.05. Requirements as to Proxy

A. Form of Proxy.

(1) The form of proxy shall:

(a) Indicate in bold face type whether or not the proxy is solicited on behalf of the insurer's board of directors, or, if not, by whom it is solicited;

(b) Provide a specifically designated blank space for dating the proxy; and

(c) Identify clearly and impartially each matter or group of related matters intended to be acted upon, whether proposed by the issuer or by security holders.

(2) Reference need not be made to proposals as to which discretionary authority is conferred pursuant to §C of this regulation.

B. Contents.

(1) Means shall be provided in the form of proxy by which the person solicited is afforded an opportunity to specify by ballot a choice between approval or disapproval of, or abstention with respect to, each matter or group of related matters referred to as intended to be acted upon, other than elections to office. A proxy may confer discretionary authority with respect to matters as to which a choice is not specified, if the form of proxy states in bold face type how it is intended to vote the shares represented by the proxy in each case.

(2) A form of proxy, which provides both for the election of directors and for action on other specified matters, shall be prepared clearly to provide, by a box or otherwise, a means by which the security holder may withhold authority to vote for any nominee for election as a director. The form of proxy, which is executed by the security holder in a manner as not to withhold authority to vote for the election of all nominees, shall be considered to grant authority for all nominees for which a vote is not withheld, if the form of proxy so states in bold face type.

C. A proxy may confer discretionary authority to vote with respect to any of the following matters:

(1) Matters which the persons making the solicitation do not know, a reasonable time before the solicitation, are to be presented at the meeting, if a specific statement to that effect is made in the proxy statement or form of proxy;

(2) Approval of the minutes of the prior meeting if the approval does not amount to ratification of the action taken at that meeting;

(3) The election of any individual to any office for which a bona fide nominee is named in the proxy statement and the nominee is unable to serve or for good cause will not serve;

(4) Any proposal omitted from the proxy statement and form of proxy pursuant to Regulation .09 or .10 of this chapter; and

(5) Matters incident to the conduct of the meeting.

D. A proxy may not confer authority to vote for the election of any individual to any office for which a bona fide nominee is not named in the proxy statement, or to vote at any annual meeting, other than the next annual meeting (or any adjournment of it), to be held after the date on which the proxy statement and form of proxy are first sent or given to security holders. A person is not considered to be a bona fide nominee and may not be named the bona fide nominee unless the individual has consented to being named in the proxy statement and to serve if elected.

E. The proxy statement or form of proxy shall provide, subject to reasonable specified conditions, that the securities represented by the proxy will be voted and that, if the person solicited specifies by means of a ballot provided pursuant to §B of this regulation a choice with respect to any matter to be acted upon, the securities will be voted in accordance with specifications so made.