(a) A domestic mutual insurer may not merge or consolidate with a stock insurer.
(b) A domestic mutual insurer may merge or consolidate with another mutual insurer under the applicable procedures prescribed by the statutes of this state applying to corporations formed for profit, except as provided in this section.
(c) The plan and agreement for merger or consolidation shall be submitted to and approved by at least two-thirds of the members of each mutual insurer involved and voting in person or by proxy at a meeting called for the purpose after reasonable notice and under procedures that have been approved by the director. If a life insurer, the right to vote may be limited to members whose policies are other than term and group policies and have been in effect for more than one year.
(d) A merger or consolidation may not be effectuated unless the plan and agreement for it have been filed with the director and approved by the director in writing after a hearing. The director shall give the approval within a reasonable time after the filing unless the director finds the plan or agreement
(1) is inequitable to the policyholders of a domestic insurer involved; or
(2) would substantially reduce the security of and service to be rendered to policyholders of the domestic insurer in this state and elsewhere.
(e) If the director does not approve the plan or agreement the director shall notify the insurers in writing specifying the reasons.
(f) AS 21.69.590(e) also applies to mergers and consolidations of mutual insurers.