The Board of Directors of Prudential, which approved the plan, has an obligation to the policyholders. The commissioner cannot approve the application to demutualize unless she finds, among other things, that the plan is fair and equitable to policyholders and promotes the best interest of the insurer and its policyholders. There no longer is a public advocate in New Jersey. The Commissioner's review will protect the interests that were formerly the responsibility of the Public Advocate. The law does not give a special role to these organizations.
Any interested party can view the public information, attend and speak at the hearing or write.
To be effective the plan must be approved by two-thirds of policyholders who vote and at least 1 million policyholders must vote. Moreover, the plan will not be effective unless the Commissioner approves the plan after a public hearing. No, the law permits, but does not require Prudential to demutualize. No, the law that was passed in 1998 only allowed Prudential to put together a plan and submit it to the Department, and its policyholders. There are differences between the companies, including their types of business and how they have historically dealt with their policyholders.