Making Your Choice

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Making your choice - the guide

Questions and answers

These were prepared to assist policyholder in coming to their decision about the Aviva offer to buy out policyholders interest in the inherited estates of CGNU and CULAC. The reattribution was approved in the High Court on 19 September 2009 (see ‘News & Articles')

43) What is a distribution (Special Bonus)?

A distribution (or Special Bonus) is a payout from the inherited estates to policyholders (90 per cent) and shareholders (10 per cent) and may come about in a variety of ways. A with-profits company can elect to make a distribution or the Financial Services Authority (FSA) rules can require a distribution when, for example, the company has more assets than it needs to support its with-profits business or when no new with-profits business is being written from the with-profits fund. A distribution is made in the form of bonuses allocated to policies.

If a distribution happens the remaining assets of the inherited estates continue to support smoothing and investment flexibility and the other uses of the estate that the FSA permits.

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Related Questions

17) I had a long investment which matured shortly before the 21st November 2006, as I have contributed to the inherited estates how am I not eligible?

16) If I died would a claim on the policy affect eligibility?

15) My policy has been made paid up am I still eligible?

14) My policy ended just before the 21st November 2006; why have I not been considered?

13) Are all policyholders eligible?

12) If I took out a new policy would I be eligible?

11) I have recently switched out of the with profit fund, am I eligible?