A Roanoke-based insurance company is now out of state hands.
The state-ordered receivership of Shenandoah Life was ended Tuesday after three years.
The move also ends a ban on cash withdrawals by policyholders.
The SCC placed Shenandoah Life into receivership on Feb. 12, 2009 because of its financial condition.
United Prosperity Life is in the process of buying the company. It will continue operating Shenandoah Life from the Roanoke office.
Here is the news release from the Commonwealth of Virginia State Corporation Commission:
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 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.