Virginia Insurer's Decline Came With Scant Warning

A Virginia-based life insurance company's descent into receivership last month came with little if any warning and with potentially harmful consequences for policyholders, illustrating the risks consumers face as the financial meltdown weakens life insurers

On Feb. 12, Virginia's insurance regulator seized control of Shenandoah Life Insurance, saying the company's investments had deteriorated to the point that state intervention was necessary to protect policyholders.

Rating agencies that specialize in tracking the health of insurance companies hadn't sounded any alarm. At the time Shenandoah was placed in receivership, they classified Shenandoah's financial strength as "good." For example, the A.M. Best agency rated Shenandoah "B++"...

Washington Post: Virginia Insurer's Decline Came With Scant Warning