"Today marks a pivotal milestone for Economical" announce Gerald Hooper, chairman of Economical Insurance's board of directors "we have unanimously determined that demutualization is in the best interests of the company." This, just moments after the Economical Board of Directors announced its decision to proceed with the demutualization process.
This leaves some policy holders eligible to participate in the demutualization process.
Who's Eligible to Participate
Demutualization could mean allocation of some funds to various individuals including eligible policyholders. The eligible policyholders will also play an important role throughout the demutualization process, including voting to approve the company’s formal proposal to demutualize and to receive financial benefits at the end of the process.
Most of Economical policy holders are non-mutual policyholders. This means that, in general, their eligibility requires that they hold a policy of Economical and have done so for the 12-month period ending on November 3, 2015 (the date the board decided to proceed with demutualization). In addition, the following groups of policyholders may qualify as eligible non-mutual policyholders:
- a policyholder who held a policy that was at least 12 months old on November 3, 2015 even if they themselves did not hold the policy for those 12 months (e.g. a joint policyholder added to an existing policy)
- a policyholder who, for whatever reason, did not hold any one policy that was 12 months old on November 3, 2015, but had held two or more similar policies during that 12-month period which added up to 12 months of coverage (two policies are similar if they are both personal property policies, both are auto policies or both are commercial policies)
- a policyholder who would have been eligible (including in the above circumstances) but for gaps in coverage each up to 30 days
- a policyholder who has a combination of the above circumstances
However, a policyholder that was eligible on November 3, 2015 might still lose their eligibility if their policy (and any similar policies) is cancelled or lapses after November 3, 2015.
As part of the demutualization process, all policyholders will receive a letter describing the demutualization process and setting out the criteria for determining eligibility. In the meantime, policy holders can review Economical's demutualization website: joininourfuture.com. It provides information on determining eligibility as well as other possible outcomes.
Economical also noted that only persons holding policies issued by Economical Mutual Insurance Company are eligible to participate in demutualization. This includes include policies sold by Family Insurance Solutions Inc., or under the Western General brand. On the other hand, policies issued by our subsidiaries (Perth Insurance, Waterloo Insurance (Economical Select), Federation Insurance or Missisquoi Insurance) are not taken into account for eligibility.
Interested in Learning More?
- The full news release is available on the Economical Insurance website.
- The Join Our Future website is the official resource for those with questions about demutualization.
- Policyholders can also contact Economical at joininourfuture@economical.com, 1-866-302-6046
(toll-free) or 1-514-982-8708 (local and international). - Follow these links for progress reports, news releases, and FAQs that can help you keep up-to-date with what is happening.
