Chartered in 1925, the company wrote ordinary life, accident, health and annuity business--mainly small face value home service/debit policies. On September 30, 2009, the Superior Court of California for the County of Los Angeles ordered Golden State Mutual into conservation based on hazardous conditions. The sale of new and renewal policies was immediately discontinued. The Commissioner's Conservation and Liquidation Office took over the company and is overseeing the payment of claims and receipt of premiums while developing a wind-down plan. A $5,000 limit on annuity surrender requests was in place during the conservation period, and a hardship committee has been established to review these requests. In November 2009, bid packages were sent to a number of potential assuming reinsurers with bids due by January 29, 2010. On February 26, 2010, IA American Life Inc. was selected as the winning bid. An agreement was finalized.
On June 24, 2010, the Los Angeles, California Superior Court approved the Conservator's Rehabilitation Plan. The essence of the Plan is the assumption reinsurance agreement with IA American Life Insurance Company, an A- rated company owned by Industrial Alliance Insurance and Financial Services, Canada's fifth largest life insurer. Under the Plan, IA American will assume all of the inforce policies and annuity contracts, with the exception of one employee group life policy. In return, IA will accept GSM's assets, including its bonds, stocks and mortgage portfolio. IA American will also pay an $11 million ceding commission to GSM.
On December 16, 2010, the receiver filed a petition for liquidation based on insolvency, which was entered by the court on January 28, 2011. On June 2, 2011, the court approved the termination of the employee Pension Plan effective December 31, 2010.
California CLO Web Site: www.caclo.org
The guaranty associations closed an Assumption Agreement transaction with Madison National on February 1, 2013, whereby Madison National assumed coverage for the employee group life policy certificate holders.
The claims bar date, extended twice by the receivership court, is currently December 31, 2013.
Guaranty association coverage is coordinated on a state-by-state basis, with coverage usually being provided by the association in your state of residence, regardless of where you purchased your policy. Policyholders should contact their state guaranty association with any questions they have about their policies. The drop-down menu below will take you to your state association's Web site, which provides answers to frequently asked questions and contact information.
The liquidator, by court order, becomes the sole owner of the company's assets and administers the estate of the company.
If you are unsure whom to contact with your questions, please e-mail us here, and we will forward your message to the appropriate party.
NAIC Number: 63924
An NAIC number is a five-digit number assigned to every insurance company by the NAIC (National Association of Insurance Commissioners). Because each company has its own unique number, the NAIC number can be used to identify a particular company.
Domiciliary State: California
The domiciliary state is the state in which an insurance company is incorporated or organized.
Rehabilitation Date: June 24, 2010
Liquidation Date: January 28, 2011
Estate Closed: October 17, 2016