Economic Decline
By the 1980s, Golden State Mutual was struggling to maintain profitability.
On September 20, 2009, California Insurance Commissioner Steve Poizner placed Golden State Mutual into conservation after its surplus funds dropped below required minimum levels. This occurred after six consecutive years of net operating losses.
As the result, the state ordered that Golden State Mutual's policies be taken over by IA American Life Insurance Company. Golden State Mutual was also forced to sell its art collection which was valued in the millions of dollars to help pay off mounting debts.
The selection of IA American Life came as a result of a national bidding process involving more than 40 active life insurers. IA American Life Insurance Company, rated A- by noted insurance rating firm AM Best, was the only bidder that satisfied all key components of the selection criteria. This included the ability to assume 100% of the Golden State Mutual policies, so that policyholders will be fully protected under the transaction while remaining creditors and investors have a much greater potential to be repaid.
Read more about this topic: Golden State Mutual Life Insurance Company
Famous quotes containing the words economic and/or decline:
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—P.J. (Patrick Jake)
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—Joseph Featherstone (20th century)