A. A domestic mutual insurer shall not merge or consolidate with a stock insurer.

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B. A domestic mutual insurer may merge or consolidate with another mutual insurer in accordance with procedures prescribed by general laws applying to corporations formed for profit, except as provided by 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 voting thereon at meetings called for the purpose pursuant to such reasonable notice and procedure as has been approved by the director of the department of insurance and financial institutions. If a life insurer, the right to vote may be limited to members whose policies are in a face amount of not less than $1,000 and have been in force one year or more.

D. A merger or consolidation shall not be effectuated unless in advance thereof the plan and agreement therefor have been filed with and approved in writing by the director of the department of insurance and financial institutions. The director shall give approval within a reasonable time after filing unless the director finds the plan or agreement:

1. Inequitable to the policyholders of any domestic insurer involved.

2. Would substantially reduce the security of and service to be rendered to policyholders of the domestic insurer in this state or elsewhere.

E. If the director does not approve the plan or agreement the director shall so notify the insurer in writing specifying the reasons for the disapproval.