"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.
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:
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.
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