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Sun Life Insurance /
Clarica - Missing Policy
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Sun Life Insurance /
Clarica - Missing Policy
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Sun Life Insurance - Clarica Life Insurance Claims and Demutualization Payouts |
Sun Life Insurance Company - ClaricaOn March 22, 2000, Sun Life Assurance Company of Canada completed its $1.2 billion demutualization and became Sun Life Financial Inc. In May, 2002, Sun Life Financial acquired Ontario-based Clarica, for $4.7 billion. Clarica itself had demutualized in July 1999. In addition to policy benefits, many policyholders are entitled to demutualization compensation. Many of the nation's oldest and largest life insurers began as mutual insurance companies. In recent years, however, a growing number - including Prudential, John Hancock, Metropolitan Life, Principal, Mutual of New York and dozens of others - have demutualized. Demutualization is the process of converting a mutual life insurance company, owned by its policyholders, to a publicly traded stock company owned by shareholders, pursuant to a plan of conversion approved by government regulators. The amount paid to each policyholder is based on a number of factors, including length of time the policy has been in force, face value of the policy, and total premiums paid. For many policyholders, the windfall arising from demutualization can be substantial, but millions of missing policyholders and heirs aren't aware they are entitled to receive compensation. The number of shares allocated to each eligible Sun Life policyholder varied widely. Owners of participating insurance policies in force as of January 27, 1998, were eligible for demutualization benefits in the form of shares or cash. The minimum allocation was 75 shares, plus a variable component based on a number of factors. The average allocation was 378 shares. In the years since demutualization, approximately one-half of those eligible have been located and claimed demutualization benefits.
Between one-quarter and one-half of all life insurance policies go unclaimed, because it is generally up to family members to notify the insurance company when a policyholder dies, and virtually no effort is made to find lost beneficiaries. In addition, millions of missing policyholders aren't aware they are entitled to receive this demutualization compensation. Contact efforts were unsuccessful, due to name changes after marriage or divorce, unreported changes of address, expired postal forwarding orders and non-current beneficiary information. By law, unclaimed policy benefits, including demutualization compensation, are remitted to the custody of a government trust account until claimants come forward. Last year government custodians collected $22.8 billion, of which less than $1 billion was claimed. It is highly recommended that current and former policyholders and heirs - the majority of whom are unaware they're entitled to unclaimed policy benefits, stock & cash - initiate an Unclaimed Life Insurance Policy Search |
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