New Jersey insurance regulators have filled a rehabilitation plan for failed Mutual Benefit Life Insurance Co., state Insurance Commissioner Samuel F. Fortunato announced Tuesday.

The plan filed late Monday with Judge Paul Levy, gives Mutual Benefit policyholder's claims priority over guaranteed unsecured creditors, including the holders of about $800 million of municipal bonds backed by the Newark, N.J.-based company. Judge Levy is overseeing the rehabilitation of the failed insurer and must approve the final plan.

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