SECTIONS 1540 - California Statutes

INSURANCE CODE

SECTION 1540

1540. Any two or more domestic reciprocal insurers, upon
affirmative vote of not less than two-thirds of the subscribers of
each such insurer who vote on such merger pursuant to due notice and
the prior approval of the commissioner of the terms of such notice,
of the manner and form of such voting and of such proposed merger,
may merge. The commissioner shall not approve any plan for such
merger which is inequitable to subscribers, or in any case where the
bylaws or other rules, regulations, power of attorney or other
instrument affecting the rights of subscribers of either such
reciprocal, has been amended within one year prior to the date of
filing with the commissioner of the application for such approval.