The ruling from Commonwealth Court Judge
"After a long and difficult eight-year legal process, the Court's decision to approve the liquidation recognizes the companies' financial difficulties are too great to be remedied, and that consumers are best protected through the state guaranty association system," Pennsylvania Insurance Commissioner
Penn Treaty and American Network have about 76,000 policyholders nationwide, with 9,000 in
Nonetheless, employees of the
Penn Treaty and American Network specialize in long-term care insurance that helps pay for certain medical and personal expenses, such as nursing-home care. Nearly a decade ago, Penn Treaty's financial problems became a matter of public record. Essentially, regulators concluded that the company didn't have enough money and other assets to pay customers what it had promised.
In 2012, Leavitt not only denied the state
Penn Treaty said at the time that the ruling was the first time a petition to liquidate an insurance company had been defeated in
"There were no objections" to liquidation this time,
Like a zombie company, Penn Treaty, not quite dead, will continue to function under the control of the
Despite the company's projected financial shortfall, claims will be honored up to at least
Actuarial models show about 50 percent of policyholders are expected to have claims in excess of what will be paid by the guaranty association covering their policies, the
"Policyholders should continue to file claims as they have been in the past, and must continue to pay their premiums in order to be eligible for guaranty association coverage," Commissioner Miller said.
For four years running, Penn Treaty has made it onto
Penn Treaty employees said they feel a sense of camaraderie and cited as benefits the company's flexible workplace policy and tuition reimbursement. To motivate and recognize employees, the company offers a "Star Award Program," where employees can nominate their co-workers when they see someone exhibiting one of four core values. Then, four times a year, there's a reception/ice cream party to honor the winners.
PENN TREATY NETWORK AMERICA
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