Golden State Mutual Life Insurance Company has entered into a letter of intent with IA American Life Insurance Company to transfer all of its in-force insurance policies to IA American.
The deal was arranged by the California Department of Insurance to protect policyholders of Golden State Mutual, Los Angeles, according California Insurance Commissioner Steve Poizner. Poizner put Golden State under the supervision of the commissioner’s Conservation and Liquidation Office in September after the company repeatedly reported operating losses.
Golden State Mutual, the largest minority-owned life insurance company in California, was placed into conservatorship when its surplus dropped below the minimum required by the state
“State law requires that we protect policyholders by taking over an insurer when its finances weaken to a point where further deterioration may lead to claims not being paid,” said Poizner.