In the 1960s and 70s the nationâ€™s largest keyboard company Â Baldwin Piano & Organ Company began expanding into banking and insurance eventually creating a large conglomerate of financial services companies.Â In 1977 Baldwin merged with United Corp., an investment company, and became Baldwin-United Corp.
Unfortunately for buyers, these contracts proved to be unsustainable and directly contributed to the bankruptcy of Baldwin-United in 1983.Â In fact, the $9 billion in liabilities of Baldwin-United exceeded the combined debt of the four previous largest bankruptcies up to that point.Â
In the 1983 the states of Indiana and Arkansas took over the majority of Baldwin-Unitedâ€™s assets and began the long process of rehabilitating the two insurance carriers and distributing assets to policyholders.
â€śbetting they can wring more profit from annuity contractsâ€ť than traditional insurance companies.
Â â€śbetting they can wring more profit from annuity contractsâ€ť than traditional insurance companies.
- Are they controlled by outside entities that donâ€™t have an insurance background or experience?
- Do they offer products with features and rates that are far above what the competition is offering?
ProperlyÂ managed insurance companies are among the safest places for your retirement dollars even in the example of Baldwin-United the state guaranty associations made the policyholders whole.Â This process is time consuming so it wise to research companies you are considering.