American Family on Tuesday began mailing proxy informational packets to its policyholders across 19 states. Proxy voting closes on
The company recognizes not all policyholders will vote, but at least 75 percent of ballots cast must approve the plan before it can more forward. Results of the vote will be released after the
The plan has been approved by the company's board of directors. Besides approval from policyholders, the
The OCI has scheduled a public hearing on American Family's plan for
If approved, current American Family policyholders won't notice any change, Muth said. Premium pricing also would remain unaffected.
American Family wants to create a mutual holding company, which would be the parent company of
Long term, the new structure would make it easier for American Family to expand into other states, said
The company now operates in 19 states:
"Their proposal really would give them more flexibility," Carstensen said. "If they wanted to expand to a new region or state like
Granting management the authority to add new product lines is the risk for policyholders, who also are the company's owners.
"It raises the question, whether management is well situated to make those kinds of decisions," Carstensen said. "They are playing with policyholders' money."
Rules already in place protect policyholders and their policies, he said.
"State insurance commissioners around the country keep watch over the insurance industry and their finances," Carstensen said. "They are the first line of defense for (policyholders)."
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