(a) A hospital and medical service corporation, as defined in § 23-75-101, may be converted to a legal reserve mutual life insurer, as defined in § 23-69-102, under a plan or procedure which shall be approved by the order of the Insurance Commissioner.

(b) The commissioner shall approve any such plan or procedure if he or she finds that the plan:

(1) Would not be contrary to law and would not be contrary to the interests of subscribers or contract holders or to the public;

(2) Has been approved by the corporation in accordance with its articles of incorporation, bylaws, and with the law;

(3) Provides for definite conditions to be fulfilled by a designated early date upon which the mutualization will be deemed effective; and

(4) Provides for the protection of all existing contractual rights of the corporation's subscribers or contract holders for medical and hospital service or case or claims for reimbursement therefor, and for the mutualizing insurer to assume, without reincorporation, all assets and liabilities of the corporation.

(c) Upon conversion, the corporation will have the minimum surplus required of legal reserve mutual life insurers.

(d) Upon completion of its conversion to a legal reserve mutual life insurer as provided in this section, the corporation shall be subject to and comply with all laws and regulations applicable to legal reserve mutual life insurers.

(e) The corporation shall have the period of time which shall be specified in the commissioner's order to complete its conversion to a legal reserve mutual life insurer.