Unlike most other states, New Jersey has no industry-sponsored guarantee fund that could protect policyholders.

To lessen the effect, insurance carriers lobbied strenuously for legislation to protect policyholders.

Dental insurance, like medical insurance protects policyholders for dental costs.

Mr. Florio said last week he still supported the new law, which was designed to protect policyholders and offer insurers a chance to make reasonable profits.

He said that protecting policyholders "still can be accomplished, even without a takeover at this time."

Other states have recently enacted strong laws that protect policyholders when life insurance companies move to stock ownership.

Moreover, consumer advocates have criticized the guidelines for not going far enough to protect policyholders.

"But the actions we are taking are required to protect policyholders as well as pension funds."

The Irish Government did so to ensure a continuation of the insurance business and to protect policyholders.

In nearly every state, licensed insurers must contribute to a state-run life insurance guarantee fund, which is intended to protect policyholders if an insurer fails.