RICHMOND — The State Corporation Commission (SCC) has
set a hearing on a proposed rehabilitation plan for Shenandoah Life Insurance Company.
The plan involves an acquisition of the Roanoke-based insurance company by United
Shenandoah has been in receivership since February 2009. A receivership order was
issued by the Circuit Court of the City of Richmond after the SCC determined that
entering receivership was necessary to protect the interests of Shenandoah's policyholders
The Commission hearing will be held at 10:30 a.m., Tuesday, October 11, 2011 in
an SCC courtroom on the second floor of the Tyler Building, 1300 East Main Street
in downtown Richmond. The Commission intends to web cast the audio portion of the
hearing. Instructions for listening to the web cast can be found on the SCC web
site at: http://www.scc.virginia.gov/case/webcast.aspx
Upon the closing of the transaction, and following regulatory and policyholder approval
for the demutualization, Shenandoah would become a wholly-owned subsidiary of United
Prosperity Life Insurance Company. As part of the acquisition, United Prosperity
would invest a minimum of $60 million in Shenandoah. If approved by the Commission
and the company’s policyholders, the transaction is expected to close by the first
quarter of 2012.
A moratorium placed on the payment of claims and benefits, except for accident and
health claims, death claims, periodic annuity payments and hardship claims, at the
time of receivership will remain in place during the acquisition process. Additionally,
Shenandoah will not resume the issuance of new insurance policies until after the
acquisition by United Prosperity Life Insurance Company is complete.
Case Number INS-2011-00155
Policyholders with questions about the receivership are encouraged to call Shenandoah
at (540) 985 4400. Also, information can be obtained at www.shenlife.com. Calls
may also be directed to the SCC's Bureau of Insurance. From within Virginia, the
toll free number is 1-800-552-7945. Callers may also dial direct at (804) 371-1502.