US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2857.  MERGERS AND CONSOLIDATIONS OF MUTUAL INSURERS. (1) Except as set
forth in section 41-3821, Idaho Code, a domestic mutual insurer shall not
merge or consolidate with a stock insurer.
    (2)  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 hereinbelow
provided.
    (3)  The plan and agreement for merger or consolidation shall be submitted
to and approved by at least two-thirds (2/3) of the members of each mutual
insurer voting thereon at meetings called for the purpose pursuant to such
reasonable notice and procedure as has been approved by the director. If a
life insurer, 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 (1)
year.
    (4)  No such merger or consolidation shall be effectuated unless in
advance thereof the plan and agreement therefor have been filed with the
director and approved by him in writing after a hearing thereon. The director
shall give such approval within a reasonable time after such filing unless he
finds such plan or agreement:
    (a)  Inequitable to the policyholders of any domestic insurer involved; or
    (b)  Would substantially reduce the security of and service to be rendered
    to policyholders of the domestic insurer in this state and elsewhere; or
    (c)  Is subject to other material and reasonable objections.
    (5)  If the director does not approve such plan or agreement he shall so
notify the insurers in writing specifying his reasons therefor.
    (6)  No director, officer, agent or employee of any insurer party to such
merger or consolidation, nor any other person, shall receive any fee,
commission or other valuable consideration whatsoever for in any manner
aiding, promoting, or assisting therein except as set forth in the plan and
agreement approved by the director.