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.