US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 29
                             RECIPROCAL INSURERS
    41-2929.  MERGER OR CONVERSION. (1) A domestic reciprocal insurer upon
affirmative vote of not less than two-thirds (2/3) of its subscribers who vote
on such merger pursuant to due notice and the approval of the director of the
terms therefor, may merge with another reciprocal insurer or be converted to a
stock or mutual insurer.
    (2)  Such a stock or mutual insurer shall be subject to the same capital
or surplus requirements and shall have the same rights as a like domestic
insurer transacting like kinds of insurance.
    (3)  The director shall not approve any plan for such merger or conversion
which is inequitable to subscribers, or which, if for conversion to a stock
insurer, does not give each subscriber preferential right to acquire stock of
the proposed insurer proportionate to his interest in the reciprocal insurer
as determined in accordance with section 41-2928 and a reasonable length of
time within which to exercise such right.