33-4-521. Farm mutual insurers -- merger.
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33-4-521 . Farm mutual insurers -- merger.
(1)A domestic farm mutual insurer may not merge or consolidate with a stock insurer.
(2)A domestic farm mutual insurer may merge or consolidate with another farm mutual insurer or another domestic mutual insurer if:
(a)the insurers transact similar lines of business;
(b)the insurers agree on a plan for merger or consolidation which must be submitted to all members of each insurer by ballot and approved by two-thirds of the members voting for each respective insurer; and
(c)after submitting the plan for review and opportunity for a hearing, the commissioner provides written approval or denial of the merger or consolidation within a reasonable time.
(3)After opportunity for a hearing in subsection (2), the commissioner may not approve the merger or consolidation if evidence shows that it:
(a)is inequitable to the policyholders of any domestic mutual insurer involved;
(b)would substantially reduce the security of and service to be rendered to policyholders of the domestic mutual insurer; or
(c)is contrary to law.
(4)Sections 33-3-217
(5)and 33-3-218 also apply to mergers and consolidations of mutual insurers with farm mutual insurers.
(5)Upon merger or consolidation of a domestic farm mutual insurer with another domestic mutual insurer under this chapter, the corporate charter of the merged or consolidated domestic farm mutual insurer must automatically be extinguished and nullified.