RICHMOND — The successful rehabilitation of Shenandoah
Life Insurance Company has allowed the State Corporation Commission (SCC) to end
its three year receivership of the Roanoke-based insurer. Shenandoah Life resumes
possession of its property and the management of its affairs as a stock company,
an affiliate of United Prosperity Life Insurance Company.
As part of the rehabilitation and agreement with United Prosperity, Virginia Insurance
Commissioner Jacqueline K. Cunningham has entered a directive lifting the moratorium
on cash withdrawals by Shenandoah Life policyholders. The moratorium on policy loans,
cash or surrender values, surrenders, fund transfers, lapses, cash outs and similar
payments has been in place since February 12, 2009. On that date, the SCC became
the receiver of Shenandoah Life in order to protect the interests of policyholders
and creditors after it was determined the company’s financial condition was impaired.
Cunningham has served as deputy receiver.
On October 20, 2011, the Commission approved a rehabilitation plan. In mid-December,
97 percent of nearly 23,000 policyholders voted in favor of converting the company
from a mutual life insurer to a stock insurance company under the control of United
United Prosperity is investing a minimum of $60 million in Shenandoah Life. It will
continue to operate the company from the Roanoke office. Shenandoah will also be
able to issue new insurance policies now that the acquisition by United Prosperity
Life Insurance Company is complete.
Case number INS-2011-00155