If two or more companies propose to merge under the provisions of § 58-35-63 and their membership has approved the plan of merger, the plan of merger shall be filed with the director of the Division of Insurance, accompanied by the articles of merger, and a request for the approval of the plan of merger. The plan shall be approved by the director after a hearing on the plan within a reasonable time unless the director finds that the plan:

1. (1) Is contrary to law;
2. (2) Is inequitable to the policyholders of any domestic insurer involved; or
3. (3) Would substantially reduce the security of and service to be rendered to the policyholders of the domestic insurer. The director shall review the plan of merger and may waive any hearing if the director finds the proposed merger does not prejudice the interests of the policyholders of the companies.

Source: SL 1995, ch 293 , § 5.