FREQUENTLY ASKED QUESTIONS GENERAL INFORMATION

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1 FREQUENTLY ASKED QUESTIONS We hope the information below answers many of the questions you may have. GENERAL INFORMATION QUESTION 1: QUESTION 2: QUESTION 3: QUESTION 4: QUESTION 5: WHAT CAN YOU TELL US ABOUT PROSPERITY LIFE INSURANCE GROUP, LLC? Black Diamond Capital Partners, L.P. and Reservoir Capital Group are the investment firms who own Prosperity Life Insurance Group, L.L.C. Black Diamond Capital Partners, L.P. is a private equity firm focused on insurance sector investments. Reservoir Capital Group is a privately held investment firm that invests in both public and private markets as well as in partnership with investment teams. IS THERE A WEBSITE FOR PROSPERITY LIFE INSURANCE GROUP, LLC? A website does not currently exist for Prosperity Life Insurance Group, LLC. You can visit the websites for the investment firms Black Diamond Capital Partners, L.P. ( and Reservoir Capital Group, L.L.C. ( WILL THE NAME AND LOCATION OF THE COMPANY S HOME OFFICE CHANGE? Shenandoah Life s insurance operations continue to be based in Roanoke. Please continue to use the same mailing addresses and telephone numbers you have been using. Come visit us on the web at WHAT IS NEXT FOR SHENANDOAH LIFE? The new Board of Directors is working closely with senior management to review processes in all areas of our business. Our vision for Shenandoah Life is to continue our history of being a provider of high quality products and services. HOW IS THE INFUSION OF CAPITAL BY PROSPERITY LIFE INSURANCE GROUP, LLC BEING INVESTED? The new Board of Directors and senior management have developed investment guidelines which are being used by Shenandoah Life s professional third party investment management advisors to guide ongoing investment decisions. The Board of Directors reviews and approves the Company s investments at least quarterly.

2 QUESTION 6: WHAT IS THE CURRENT A.M. BEST RATING FOR PROSPERITY LIFE INSURANCE GROUP, LLC? Prosperity Life Insurance Group, LLC does not write any insurance business and therefore does not have an A.M. Best rating. QUESTION 7: QUESTION 8: WHAT IS SHENANDOAH LIFE S CURRENT A.M. BEST RATING? We do not currently have an A.M. Best rating. Senior management is working with A.M. Best and other rating agencies to discuss the process for obtaining a rating in the future. WHO IS THE NEW BOARD OF DIRECTORS? The new board of directors is comprised of the principal members of Black Diamond Capital Partners and Reservoir Capital Group as well as Shenandoah Life s CEO. QUESTION 9: WHO IS THE NEW CEO? WHAT IS HIS BACKGROUND? The new CEO is Hans Carstensen. Mr. Carstensen was previously President and CEO of Aviva Life Insurance Co. from Aviva Life s parent company in London, Aviva plc, and its associated subsidiaries was the fifth largest insurance conglomerate in the world at that time. Earlier in his career Mr. Carstensen served in senior roles at GNA Corp. and GE Financial Assurance, a subsidiary of GE Capital. Mr. Carstensen received his MBA in finance and bachelor s degree in political science from Stanford University. QUESTION 10: CAN I PURCHASE SHARES OF STOCK? No. Shenandoah Life is not a publicly traded stock insurance company. 100% of the shares are owned by Prosperity Life Insurance Group, LLC. QUESTION 11: WILL ELIGIBLE POLICYHOLDERS BE ABLE TO EXCHANGE ANY ACCUMULATED DIVIDENDS FOR SHARES OF STOCK? No. Since Shenandoah Life is wholly owned by Prosperity Life Insurance Group, LLC and is not a publicly traded stock insurance company, participating policyholders do not have the ability to exchange accumulated dividends for shares of stock in the company.

3 QUESTION 12: WHEN WILL SHENANDOAH RESUME ISSUING NEW POLICIES? Senior management is currently evaluating the products to offer our field force. The evaluation process will continue for several more months before we determine our product line and finalize our distribution strategy. LIFE POLICY INFORMATION QUESTION 13: WHAT IS GOING TO HAPPEN TO MY SHENANDOAH LIFE POLICY? Rest assured, your inforce policy is secure and will continue in accordance with the policy provisions. Shenandoah Life has not canceled any policies or contracts except in the ordinary course of business. QUESTION 14: WILL MY PREMIUMS BE INCREASED? Premiums will not be increased except under the normal course of business as outlined in the provisions of your policy. QUESTION 15: WILL I RECEIVE A NEW POLICY? No. Existing Shenandoah Life policies are valid and secure. QUESTION 16: WILL I NOW HAVE TO DEAL WITH AN UNFAMILIAR COMPANY TO KEEP MY POLICY? No. Shenandoah Life s dedicated home office team of employees remains committed to serving you. QUESTION 17: CAN I MOVE MY SHENANDOAH LIFE POLICY OR ANNUITY TO ANOTHER COMPANY? Yes. Exchange requests between Shenandoah Life and any other company can resume as part of our normal business transactions. However, you should do a comparison of policies to ensure replacement is in your best interest. QUESTION 18: CAN I APPLY FOR A POLICY LOAN? Yes. Normal policy requests are available.

4 QUESTION 19: CAN I SURRENDER MY SHENANDOAH LIFE POLICY OR ANNUITY? Yes. Normal business operations have resumed. If you are replacing your coverage you should do a comparison of the policies to ensure replacement is in your best interest. QUESTION 20: WILL SHENANDOAH LIFE DECLARE AND PAY DIVIDENDS FOR 2010 THROUGH 2012 TIMEFRAME? No dividends were declared for the years 2010 through QUESTION 21: WILL SHENANDOAH LIFE PAY FUTURE DIVIDENDS TO ELIGIBLE POLICYHOLDERS? As in the past, payment of dividends on participating policies will be determined by the Board of Directors on an annual basis. ANNUITY CONTRACT INFORMATION QUESTION 22: WILL I CONTINUE RECEIVING PERIODIC MONTHLY PRINCIPAL PAYMENTS UNDER MY ANNUITY? Yes. QUESTION 23: WILL MY PRIOR SYSTEMATIC PERIODIC WITHDRAWALS AND INTEREST PAYMENTS FROM MY SHENANDOAH LIFE ANNUITY BE RESUMED? You may request to setup a new systematic withdrawal from your annuity. New request forms will need to be completed in order to exercise this option. QUESTION 24: CAN I ANNUITIZE MY POLICY OR CONVERT IT FROM A DEFERRED TO AN IMMEDIATE ANNUITY? Yes. Normal business operations have resumed.

5 QUESTION 25: WILL INTEREST RATES INCREASE ABOVE THE MINIMUM GUARANTEE LEVEL? As in the past, the Board of Directors will assess the current market and economic conditions surrounding the interest-rate environment when contemplating an increase to existing rates. No rate increases are planned at this time.