1. No insurance company shall, directly or indirectly, purchase or hold, either absolutely or as collateral, its own stock, after the same has been once issued, without prior approval of the director of the department of commerce and insurance. The written application shall specify the number of shares offered, their description, the price offered by the company, the book value of said shares and any other pertinent information regarding the value of said shares. A copy of said application shall be given to the seller prior to the filing of said written application with the director of the department of commerce and insurance. This section shall not prevent a company from buying its own stock, if the same shall be forfeited and sold to the company for nonpayment of assessments thereon, in which case it shall be treated and issued as part of the original stock. Any person willfully making a false statement or representation in the application mentioned above shall be deemed guilty of a felony and be imprisoned for a period of not less than two years nor more than five years.

2. Notwithstanding the limitations set out in subsection 1 of this section, an insurance company may purchase or otherwise acquire its own stock, after the same has once been issued, without prior approval of the director of the department of commerce and insurance provided that:

(1) The insurance company does not thereby reduce its capital and surplus below the minimums required by law for such company to continue to do business; and

(2) The insurance company, within ten days after the end of any three-month period in which it acquires more than five percent of any class of its outstanding shares, files a report with the director of the department of commerce and insurance showing:

(a) The date of such purchase;

(b) The class of stock purchased;

(c) The number of shares of each class so purchased;

(d) The aggregate price paid for such shares of each class so purchased; and

(e) The authorized capital, actual capital, and surplus of such company immediately prior to such purchase.

3. No shares which are or have been reacquired, purchased, pledged, or held by an insurance company pursuant to subsection 1 or 2 of this section shall be considered an admitted asset, nor shall be considered in determining the solvency of any insurance company.