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

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58-5-131. 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).


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