Filing and hearing on consolidation or merger plan--Grounds for disapproval

No such merger or consolidation shall go into effect until the plan and agreement therefor is filed with the director and approved by him after a hearing thereon. Such plan and agreement shall be approved by the director within a reasonable time unless he finds such plan or agreement: (1) Is contrary to law; or (2) Is inequitable to the policyholders of any domestic insurer involved; or (3) Would substantially reduce the security of and service to be rendered to policyholders of the domestic insurer. Source: SL 1966, ch 111 , ch 16, § 38 (2).