Indianapolis Life Unclaimed Demutualization Compensation and Missing Policies
American Mutual Life was renamed AmerUs Life Insurance Company in 1995. On September 20, 2000, it demutualized to become AmerUs Group. Shares of AmerUs Group common stock, cash and policy credits were distributed beginning July 31, 2001, to eligible members of Indianapolis Life Insurance Company, in connection with the demutualization of Indianapolis Life and its concurrent combination with AmerUs Group in May 2001.
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.
Compensation to eligible policyholders and heirs totaled approximately $325 million, consisting of a fixed component of 12 AmerUS common shares, as well as a variable component based on policy value. Lost policyholders will receive cash in lieu of stock, at the rate of $35.63 per share. In the first year after the initial public offering, the price of an AmerUS Group common share increased 99%.
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, tens of thousands of missing policyholders and heirs 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
|American Mutual Life / Amerus
|Manufacturers Life / Manulife
|Principal Mutual Life
|Metropolitan Life / MetLife
|Provident Mutual Life
|Central Life Assurance
|Mutual of New York / MONY
|Equitable / Axa
|Mutual Service Life
|General American Life
|Nationwide / Allied Mutual
|State Mutual / Allmerica
|Northwestern / ReliaStar
|Sun Life / Clarica
|John Hancock Mutual Life
|Phoenix Home Life
|Unum Mutual / Unum