Demutualization is the process of taking a mutual life insurance company that is owned by its policyholders and converting it into a publicly traded stock company owned by shareholders, in accordance with a plan of conversion that has been approved by policyholders and state regulators. It also goes by the names of stocking or privatization.
Mutual life policyholders have the ability to receive stock, cash and/or policy credits in exchange for their ownership interests in the previous mutual insurance company often known as a "windfall" payout. I'm sure that as many of you know, it is not always a "windfall".
At times, policyholders receive only subscription rights to buy shares of stock of the newly formed company or membership rights can be transferred to a mutual holding company (MHC) which owns a newly formed, subsidiary stock life insurance company.
If the current address of the policyholder was unknown, the shares of their stock and any dividends that were paid out are held in trust. These shares are held for a specific period of time which is mandated by the state where the shares were purchased in and if the heirs are not found, then the company, according to the unclaimed property laws of the state, are then sold where the money is held.
Millions of policyholders and their heirs may be entitled to these funds. Most never know because they are not informed by the parent company or the state where these shares are located.
The largest life insurance companies that have demutualized include the following firms:
American Mutual Life - AmerUS
Anthem Insurance
Central Life Assurance
Equitable - Axa
General American Life
Indianapolis Life
John Hancock Mutual Life
Manufacturers Life - Manulife
Metropolitan Life - MetLife
Mutual of New York - MONY
Mutual Service Life
Nationwide Life
Northwestern - ReliaStar
Phoenix Home Life
Principal Mutual Life
Provident Mutual Life
Prudential Life
Standard Insurance
State Mutual - Allmerica
Sun Life
Sun Life - Clarica
Union Mutual - UNUM
If you feel that you may be owed money or shares from the proceeds of the demutualization, you should contact the life insurance company directly. If, while going through any papers that you have, find the possibility of having something, take a few moments and place a call and find out if there is anything there for you. You may be quite surprised.
If the demutualization happened more than five years ago, you would then be referred to the state (where the company is incorporated) unclaimed property office. Always go to the numerous websites that are out there to see if there is any money for you, a family member, or friend.
Jeffrey Richman
Article Source: http://EzineArticles.com/expert/Jeffrey_Richman/989786
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