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. The company will resume 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 Prosperity.
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.
