Golden State Mutual Life Insurance Company , after the largest black insurance company in the western United States, was founded by William Nickerson, Jr. with the help of Norman Oliver Houston and George Allen Beavers, Jr.
Video Golden State Mutual Life Insurance Company
Pendirian
In the mid-1920s, when William Nickerson, Jr., an insurance salesman and publisher from Texas, arrived in Los Angeles, he was worried about finding that most of the 16,000 blacks living in the city could not get life insurance. Unable to afford a lawyer, Nickerson studied the law to determine state requirements to form a company to accommodate this need. He partnered with fellow insurance seller Norman O. Houston and businessman George A. Beavers, Jr. to secure 500 pre-paid life insurance applications as well as a $ 15,000 deposit required by California. Houston collected $ 15,000 and Beavers found 500 blacks who would pay a premium for an undefined company.
On July 23, 1925 they opened as Insurance Company of Gold Country Guarantee Fund in a one-room office at 1435 Central Avenue, Los Angeles, with some facilities and a capital of $ 17,800. Within three months, the company had outgrown its office and moved into a warehouse on 3512 Central Avenue. By the end of the first year, the company had set up offices in Oakland, California, had sold over $ 260,000 in policy, and had $ 6,000 in reserves and surpluses of over $ 16,000. In three years, Golden State Insurance has more than 100 employees including sixty agents and branches in Pasadena, Bakersfield, San Diego and Fresno.
Maps Golden State Mutual Life Insurance Company
Initial years
In 1928, using all African American design and labor, they built a two-storey Mutual Crime Insurance Building on 4261 Central Avenue, where the company occupied the top floor while the main floor was leased to the merchants. The company remained profitable throughout the Great Depression of the 1930s. The Company began paying dividends starting in 1930 and continuing to do so until it entered its terminal decline. The name was changed to Golden State Mutual Life Insurance Company in 1931, and by the late 1930s, assets had grown to $ 437,000 with $ 6 million in policy. In 1938 they set up operations in Illinois and in 1944 they opened a branch in Texas. By the end of World War II assets reached $ 2 million, surplus funds at $ 750,000, and they had nearly $ 24 million in policy.
Growth and continuous expansion
When the company founder William Nickerson, Jr. died in 1945, Houston became president and the beaver was appointed chairman of the board. Under the new leadership, the company continued its expansion. Finally Golden State Mutual has offices in 14 states with a policy of more than $ 4 billion.
In 1949, Golden State Mutual opened its new headquarters at 1999 West Adams Boulevard in Los Angeles, designed by Paul Williams.
As a key institution in the black community, representatives of the Mutual Gold Country are active in the civil rights movement. They also collect art collections by African American artists, which include works by Richmond Barthà ©, Hale Woodruff, Charles Alston, Varnette Honeywood, Charles White, Betye Saar, and David Hammons. Work is on display in the corridors and corporate office building at Adams Boulevard, Los Angeles. The collection was founded in 1965, based on the idea put forward by William E. Pajaud, who runs the company's public relations department and is the new collection curator. For twenty two years, the company collected more than 200 works of art.
However, behind the integration, Golden State Mutual as well as other black-owned businesses began to lose market share and influence. In 1962, when the Beaver took an additional role as president of the National Insurance Association, it was clear that something was necessary to ensure the survival of black-owned businesses.
In 1970, the sons of Houston, Norman B. Houston and Ivan J. Houston, took over the active management of Golden State Mutual. While the company continues to succeed, the difficult financial waters lie ahead.
Economic downturn
In the 1980s, Golden State Mutual was struggling to maintain profitability.
The Golden State Mutual African American Art Collection was sold at auction on October 4, 2007 and spread out.
On September 20, 2009, California Insurance Commissioner Steve Poizner placed Golden State Mutual into conservation after its surplus funds fell below the minimum required level. This happened after six consecutive years of losing net operations. As a result, the state ordered the Golden State Mutual policy to be taken over by IA American Life Insurance Company.
The selection of IA American Life came as a result of a national bidding process involving more than 40 active life insurance companies. IA American Life Insurance Company, rated A- (Very Good) by renowned insurance rating company A. M. Best, is the only bidder that meets all the key components of the selection criteria. This includes the ability to assume 100% of the Golden State Mutual policy, so policyholders will be fully protected under the transaction while the remaining creditors and investors have much greater potential to be paid back.
References
- Golden State Mutual Life Insurance Company. John N. Ingham and Lynne B. Feldman. African-American Business Leader: Biography Dictionary . Westport: Greenwood Press, 1993.
- Ott, Chris. University of Washington.
External links
- California online archive
- The William Nickerson, Jr. Project (website dedicated to GSM founder and his family)
- Save East African Country Collection Mutual Life Insurance Arts of African American Art
Source of the article : Wikipedia
0 Comments