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February 17, 2009 at 07:00 PM
Virginia insurance regulators have taken control of Shenandoah Life Insurance Company and restricted payments of some types of claims and benefits, officials said Thursday.
A state court in Richmond, Va., has named the Virginia State Corporation Commission receiver for Shenandoah Life, Roanoke, Va., and it has named Virginia Insurance Commissioner Alfred Gross the deputy receiver.
Both Shenandoah Life and Virginia regulators agreed that a receivership was necessary, officials say.
Shenandoah Life was founded in 1914 and is licensed to do business in 31 states and the District of Columbia. It has been selling life insurance, annuities and dental insurance.
The company recently suffered about $50 million in losses on investments in preferred stock issued by the Federal National Mortgage Association, Washington, and the Federal Home Loan Mortgage Corp., McLean, Va., officials say.
“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,” officials say. “The company currently will no longer issue new insurance policies.”
American United Mutual Insurance Holding Company, a unit of OneAmerica Financial Partners Inc., Indianapolis, announced Thursday that it has ended efforts to acquire Shenandoah Life.
