If for reinsurance in a stock insurer of all or substantially all of the insurance in force of a mutual insurer, the agreement must provide for payment in cash to each member of the insurer entitled thereto of his equity, if any, in the business reinsured as determined under a fair formula approved by the director, as based upon the reserves, assets (whether or not “admitted” assets) and surplus, if any, of the mutual insurer to be taken over by the stock insurer.

Source: SL 1966, ch 111, ch 16, § 41 (4).