20-731. Merger or consolidation of stock insurers; hearings; notice

329 words·~1 min read·/az/title-20/20-731

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. Any domestic stock insurer except a title insurer may merge or consolidate with another domestic or foreign stock insurer by complying with the provisions of general law governing the merger or consolidation of stock corporations formed for profit, but subject to subsection B of this section.

B. A merger or consolidation is not effective under this section unless in advance of the merger or consolidation the plan and agreement have been filed with and approved in writing by the director. The director may hold a public hearing on the plan and agreement as prescribed in section 20-161, and the director shall approve the merger or consolidation unless the director finds the plan or agreement:

1. Is contrary to law.

2. Is unfair in the terms and conditions of the issuance and exchange of securities.

3. Would substantially reduce the security of and service to be rendered to policyholders of the domestic insurer in this state or elsewhere.

C. Any public hearing referred to in subsection B of this section shall be held within thirty days after the plan and agreement of merger is filed, and at least twenty-five days' written notice thereof shall be given by the director to the insurer corporations involved. Not less than ten days' written notice of the hearing shall be given by the insurer corporations to their shareholders. The insurers filing the plan and agreement, shareholders, any person to whom written notice of hearing was sent and any other person whose interest may be affected thereby shall have the right to present evidence, examine and cross-examine the witnesses and offer oral and written arguments at the hearing.

The director shall make a determination within thirty days after the conclusion of the hearing. Except as otherwise provided in this subsection, title 41, chapter 6, article 10 shall apply to hearings, orders and appeals.

D. A domestic title insurer may merge or consolidate with another domestic or foreign title insurer by complying with section 20-1576.