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The mutual life insurer has become the latest financial institution to be targeted by policyholders looking for windfalls - a practice known as carpetbagging.
Scottish Provident acknowledged that the company had received a proposal to convert last Tuesday but declined to comment further.
 Concern over mortgage shortfalls
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The call for demutualisation has been led by the web-based Scottish Provident Members Alliance Group.
The group said it was not interested in the short term gain from a windfall but hoped it would help offset the under-performance of their endowment policies.
It said there was great concern among members that mortgage repayment shortfalls would be the result of the poor return on their investments.
In a letter to company secretary Gordon Henderson, SPMAG has demanded an extraordinary meeting to vote on its resolution.
£1bn price tag
SPMAG said it believed the future of Scottish Provident would be best served by joining a "larger and more powerful public limited company."
There are an estimated £750,000 policy holders with Scottish Provident, although only 430,000 would be likely to qualify for windfalls.
Some analysts have put a £1bn price tag on the insurer, which could mean individual windfalls of more than £2,000.
Europe's largest life company, Standard Life, recently rejected a demand from policyholders to demutualise.
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