Receipt Of Distributions From Insurance Company Demutualization

There has recently been a wave of insurance companies who have changed their structure from that of a "mutual" insurance company to a "stock" insurance company. When doing so, they distribute their accumulated surplus to their policyholders. In the case where the insurer has been providing coverage for employee benefit plans, there are several ERISA and tax issues which need to be addressed. This article examines these issues and provides recommendations.