If an insurer domiciled in this state or in a state which does not have assumption reinsurance requirements adopted by statute or regulation substantially similar to those contained in the Assumption Reinsurance Act is deemed by the director to be in hazardous financial condition or an administrative or judicial proceeding has been instituted against it for the purpose of liquidating, reorganizing, or conserving such insurer, and the transfer of the contracts of insurance is in the best interest of the policyholders, as determined by the director, a transfer and novation may be effected notwithstanding the provisions of the act. This may include use of a form of implied acceptance and adequate notification to the policyholder of the circumstances requiring the transfer and novation as approved by the director.