SCC made receiver for Shenandoah Life

The State Corporation Commission has been named receiver for Shenandoah Life Insurance Co. by the Richmond Circuit Court.

Shenandoah Life and the commission determined that the receivership was necessary to protect the interests of policyholders and creditors.

Shenandoah Life is a Virginia-based life and health insurer writing primarily life, annuities and dental insurance. The company is based in Roanoke and is licensed to do business in 31 states plus the District of Columbia.

Shenandoah Life has recently experienced financial difficulties. It lost $50 million in investments in Fannie Mae and Freddie Mac preferred stock. The mortgage giants were taken over by the government last fall.

Virginia Insurance Commissioner Alfred W. Gross was appointed deputy receiver in an effort to rehabilitate the company.

A moratorium has been placed on the payment of claims and benefits, except for accident and health claims, death claims, and periodic annuity payments, until the deputy receiver completes his evaluation of Shenandoah Life's financial condition.

The company is not issuing new insurance policies.

Policyholders with questions about the receivership should call the SCC's Bureau of Insurance. The toll-free number is (800) 552-7945. Callers may also dial direct at (804) 726-2630.

Information also is available by calling Shenandoah Life at (540) 985-4400 or from the company's web site at http://www.shenlife.com.

-- Carol Hazard