April 27, 2009 12:00 AM
The future of Roanoke-based Shenandoah Life Insurance Co. is in the hands of state regulators, who are trying to determine if the company can be saved.
The State Corporation Commission took over Shenandoah Life in February after bad investments wiped out much of its capital reserves. Donald C. Beatty, a commission lawyer and regulator, assumed control of the company’s operations as a court-appointed receivership manager.
Since then the life insurance company has continued to pay claims and offer policy renewals, but it isn’t selling any new insurance coverage. Details of Shenandoah Life’s financial troubles hadn’t been made public as of early April. The state regulators in charge haven’t released financial results since last fall.
Shenandoah Life, founded in 1914, employs about 280 people. The company’s troubles are tied to its investment early last year in nearly $50 million in Fannie Mae and Freddie Mac preferred stock. The mortgage-finance companies were taken over by the federal government last year. As Shenandoah Life’s investments went bad, there were failed efforts to get federal dollars to prop up the company, and a planned merger with an Indiana-based insurer fell through.
SCC spokesman Ken Schrad says regulators still are exploring whether the company can be salvaged. “Ultimately, receivership is an action that is taken by the insurance regulator to protect policyholders, and the No. 1 goal is to rehabilitate the company if possible,” he says. “So that is an ongoing process… to assess that possibility.” There’s no timetable for deciding what to do next, he says.
i would like to know if i pull out from this unstable insurance company will they refund me all my money i give them every monyh for the last year on my whole life insurance policy
m phillip of weldon n.c
Jun. 3, 2009 at 05:52 AM
If an insurance company does fail, chances are good that your protection will be honored. The insurance regulators (state and federal agencies) work with other companies to pick up the policies from a failed company. If that effort fails, your policy may be picked up by a guaranty association, a state association made up of all the insurers in your state who collectively ensure that you won’t be left in the lurch.
Jun. 13, 2009 at 11:04 AM
I have been paying my universal policy for sometime and have about 7,000 in cash value. I had planned on cashing this in two years when I turn 65. Is my cash value protected in any way since the company is in receivership
How do I get updates on the status of the company
Richard of Nashville, TN
Jul. 9, 2009 at 07:05 PM
It is my current understanding that Shenandoah will one day emerge from receivership.
Willie Nelshon of Virginia
Jul. 15, 2009 at 09:23 PM
I have an IRA annuity invested with Shenondoah Life. I am not of age to start withdraws and I am being told I can not move it. What options do I have to try to protect my asset? I recieve statements but have not had an update on the company since going into receivership.
Terry of Va Beach
Jul. 18, 2009 at 10:52 AM
That’s really hard to say Phillip. I’ve come across a lot of similar cases where insurance companies file for bankruptcy. Some do get their money back but sad to say not the exact amount.
Home Insurance of United States
Jul. 31, 2009 at 11:03 AM
My Broker invested half of my retirement into Shenandoah Life Insurance co. I am of age that its to late to ever replace any of that money. I fear the worst and will be hard press to live my life out without those funds. What should I do? My Broker tells me not to worry that the Gov will guarantee up to $100.00 of my investment. Is there anyway to recoupe those funds, is my Broker responsible in anyway? HELP!!
Dorothy Cranfill of Virginia Beach, VA
Aug. 23, 2009 at 10:22 AM
My wife (Jennie Hunter) both have an annuity with Shenandoah Life. I am 74 and she is 68. We planned on this money for retirement.We were sold the annuities in N.C. Are we going to get our money back?
JAMES HUNTER of Webster NC 28788
Aug. 31, 2009 at 01:50 PM
The Quoting: “Ultimately, receivership is an action that is taken by the insurance regulator to protect policyholders, and the No.“
Economic situation very much not the stable. If mass bankruptcy of the insurance companies begins, no insurance regulators can solve this problem.
Anita Ortiz of Shelton, CT
Sep. 7, 2009 at 03:29 AM
Like Terry I have also an IRA annuity invested with Shenondoah Life. I am really anxious about hoe to protect my asset. Is there any possibility of rehabilitation?
life cover of UK
Sep. 8, 2009 at 01:37 AM
James, that is pretty hard to say as I know by experience that many people never get their money back. You see, first step during a bankruptcy is that the government wants what belongs to them in order to cover their expenses for that company. Second thing is to pay the stock owners from the money that are left after the government. Third and last step is to share the rest of the money with the customers, and as you realize, there will be very little left to you once everybody have eaten their part of the cake.
Mr. Credit Cards of USA, San Diego
Sep. 10, 2009 at 03:27 AM
This really is too bad, as I have been a customer of Shenandoah Life Insurance Co. for over six years now. Hopefully their customers will be treated with respect throughout this process, and I look forward to see how this all plays out.
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Jan. 6, 2010 at 08:21 AM
Annuity leads generated by your own efforts may be better than annuity leads that are purchased. GSL Advisory can help you generate these annuity leads.
Jan. 23, 2010 at 01:39 AM
My 81 year old mother has been paying into Shenandoah life for years - now she needs the cash value for doctor bills and to help the son she is living with. Have sent in letter of hardship and personal information to warrant the hardship. Will this value be distributed to her?
Danny Worden of Pensacola Fl
Jan. 30, 2010 at 02:30 PM
The problem is that insurance companies have no incentive to reduce insurance premiums. They continue to get record profits and this issue is out of control.
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