41-2857. MERGERS AND CONSOLIDATIONS OF MUTUAL INSURERS. (1) Except as set forth in section 41-3824, 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.
History:
[41-2857, added 1961, ch. 330, sec. 625, p. 645; am. 1998, ch. 303, sec. 2, p. 1001; am. 2013, ch. 266, sec. 11, p. 687.]
Structure Idaho Code
Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS
Section 41-2801 - SCOPE OF CHAPTER.
Section 41-2802 - “STOCK” INSURER — “MUTUAL” INSURER — DEFINITIONS.
Section 41-2803 - APPLICABILITY OF GENERAL CORPORATION STATUTES.
Section 41-2804 - INCORPORATION.
Section 41-2805 - FILING OF ARTICLES.
Section 41-2809 - INVESTIGATION OF PROPOSED ORGANIZATION.
Section 41-2818 - QUALIFICATION FOR INITIAL CERTIFICATE OF AUTHORITY — STOCK INSURERS.
Section 41-2820 - INITIAL QUALIFICATIONS — DOMESTIC MUTUALS.
Section 41-2822 - APPLICATIONS FOR INSURANCE IN FORMATION OF MUTUAL INSURER.
Section 41-2823 - FORMATION OF MUTUALS — TRUST DEPOSIT OF PREMIUMS — ISSUANCE OF POLICIES.
Section 41-2824 - FORMATION OF MUTUALS — FAILURE TO QUALIFY.
Section 41-2825 - ADDITIONAL KINDS OF INSURANCE — MUTUALS.
Section 41-2826 - AMENDMENT OF ARTICLES OF INCORPORATION — STOCK INSURERS.
Section 41-2827 - AMENDMENT OF ARTICLES OF INCORPORATION — MUTUAL INSURER.
Section 41-2828 - INSURANCE BUSINESS EXCLUSIVE.
Section 41-2829 - MEMBERSHIP IN MUTUALS.
Section 41-2830 - BY-LAWS OF MUTUAL.
Section 41-2831 - RIGHTS OF MUTUAL MEMBERS IN GENERAL.
Section 41-2832 - MEETINGS OF MEMBERS OF MUTUAL INSURER.
Section 41-2833 - SPECIAL MEETINGS OF MEMBERS OF MUTUAL INSURER.
Section 41-2834 - VOTING RIGHTS OF MUTUAL MEMBERS.
Section 41-2836 - NOTICE OF CHANGE OF DIRECTORS OR OFFICERS.
Section 41-2837 - PROHIBITED PECUNIARY INTEREST OF OFFICIALS.
Section 41-2838 - MANAGEMENT AND EXCLUSIVE AGENCY CONTRACTS.
Section 41-2839 - HOME OFFICE — RECORDS — ASSETS — PENALTY FOR UNLAWFUL REMOVAL.
Section 41-2840 - VOUCHERS FOR EXPENDITURES.
Section 41-2841 - BORROWED SURPLUS.
Section 41-2842 - PARTICIPATING POLICIES.
Section 41-2843 - DIVIDENDS TO STOCKHOLDERS.
Section 41-2844 - DIVIDENDS TO POLICY HOLDERS.
Section 41-2845 - ILLEGAL DIVIDENDS — PENALTY.
Section 41-2846 - CONTINGENT LIABILITY OF MUTUAL MEMBERS.
Section 41-2847 - LEVY OF CONTINGENT LIABILITY.
Section 41-2848 - ENFORCEMENT OF CONTINGENT LIABILITY.
Section 41-2849 - NONASSESSABLE POLICIES — MUTUAL INSURERS.
Section 41-2850 - NONASSESSABLE POLICIES — REVOCATION OF AUTHORITY.
Section 41-2851 - SOLICITATIONS IN OTHER STATES.
Section 41-2852 - IMPAIRMENT OF CAPITAL OR ASSETS.
Section 41-2853 - ASSESSMENT OF STOCKHOLDERS OR MEMBERS.
Section 41-2854 - MUTUALIZATION OF STOCK INSURERS.
Section 41-2854A - MUTUALIZATION OF SERVICE CORPORATIONS.
Section 41-2855 - CONVERSION OF MUTUAL INSURER TO STOCK INSURER.
Section 41-2856 - MERGERS AND CONSOLIDATIONS OF STOCK INSURERS.
Section 41-2857 - MERGERS AND CONSOLIDATIONS OF MUTUAL INSURERS.
Section 41-2858 - BULK REINSURANCE — MUTUAL INSURERS.
Section 41-2859 - MUTUAL MEMBER’S SHARE OF ASSETS ON LIQUIDATION.
Section 41-2860 - EQUITY SECURITIES OF DOMESTIC STOCK INSURANCE COMPANIES — STATEMENTS OF OWNERSHIP.
Section 41-2861 - RECOVERY OF PROFITS RESULTING FROM UNFAIR USE OF INFORMATION.
Section 41-2862 - RESTRICTIONS ON SALE OF EQUITY SECURITIES.
Section 41-2863 - PURCHASES AND SALES WHICH ARE EXEMPT.
Section 41-2864 - FOREIGN OR DOMESTIC ARBITRAGE TRANSACTIONS EXEMPT.
Section 41-2865 - “EQUITY SECURITY” DEFINED.
Section 41-2866 - CONDITIONS EXEMPTING EQUITY SECURITIES.
Section 41-2867 - RULES AND REGULATIONS.
Section 41-2868 - PROXY REGULATIONS.
Section 41-2870 - DEFINITIONS.
Section 41-2871 - USE OF BOOK-ENTRY SYSTEMS.
Section 41-2872 - HEALTH CARE PROVIDER CONTRACTS — GRIEVANCE PROCEDURE.
Section 41-2873 - BEST PRICE — MOST FAVORED NATIONS CLAUSE PROHIBITED.