Standard Life may be forced to demutualise following receipt of a members' requisition for a special general meeting to consider leaving the company's mutual status behind.
The validity of this requisition is being checked by the life company. According to Standard Life, the board regularly reviews the company's mutual status to ensure that it is appropriate for the business and it remains fully committed to mutuality.
If the move goes ahead approximately 150,000 Standard Life with-profits policies held in the Republic may be eligible for payment.
Standard life has taken steps to deter any "carpetbaggers" or those who may buy policies in hopes of a demutualisation windfall.
From last week, the company announced that if demutualisation occurred within three years of the actions by customers - initiation of a new policy, making incremental payments, switching or reallocating premiums on existing policies - compensation would not be payable to those policyholders.
Compensation will also not be payable in respect of absolute assignments and transfers of policies effected following the announcement.
An existing policyholder who becomes a member in respect of a jointly held policy where there is no change of policyholder is also ineligible for demutualisation payment within three years of becoming a member.
Sun Life of Canada has already demutualised and approximately 6,500 Sun Life of Canada policyholders in the Republic will receive payouts worth an average of £2,500 to £3,000 sterling (€4,049 to €4,858) after the insurer floats in an initial public offering (IPO) next month.
Around 98 per cent of Sun Life members voted in favour of demutualisation - the fourth in Canadian history.
More than 400 million shares will be distributed among one million with-profits policyholders worldwide when Sun Life takes a multiple listing in Toronto, London and New York.
The typical payout average worldwide is 378 shares priced between £5.50 to £8.80 sterling each.
Members have the option of shares or cash and should have replied with their chosen option by last Wednesday, February 16th.
Depending on their particular circumstances, any Irish policyholder selling shares may be subject to capital gains tax of 20 per cent.
The first £1,000 of gains made by an individual and £2,000 by a married couple are not subject to CGT.
