Penn Treaty Network America Insurance Company (Penn Treaty), headquartered in Allentown, Pennsylvania, and its subsidiary, American Network Insurance Company (ANIC), were placed into rehabilitation by the Pennsylvania insurance commissioner on January 6, 2009.
2022 - LC - Penn Treaty - Brief of Amicus Curiae - National Association of Insurance Commissioners [NAIC] - In Support of Appellant - 37p
In Re: Penn Treaty Network America Insurance Company (In Liquidation), In Re: American Network Insurance Company (In Liquidation)
Appeal of: Michael Humphreys, Acting Insurance Commissioner of the Commonwealth of Pennsylvania
2021 1008 - In Re: Penn Treaty Network America - No. 1 PEN 2009 - Insurance Company in Liquidation Liquidator's Brief in Support of Exceptions - 456p
p190-192 - 2018 0823 - ACLI to NAIC (RTIF) - re Penn Treaty - 3p
p417-439 - 2019 0522 - LC - ACLI Brief - re Penn Treaty - Exhibit E - 23p
The availability of estate assets to protect policyholders whose coverage exceeds guaranty association limits has long been a key component of state regulation of insurance and it should remain that way.
[link] - See, e.g., Mary Williams Walsh, Policyholders in Limbo After Rare Failure of Insurer, N. Y. Times, Apr. 1, 2017, at B5 (quoting one policyholder as having paid premiums for 18 years and expecting to suffer losses of up to 50% of the value of his policy).
That coverage gap, however, is both real and insurmountable for many policyholders of the insolvent insurers.
[link] - The average annual premium tables prepared by the National Association of Insurance Commissioners below provide data regarding the average increase in premiums based on policyholder age. Average Annual Premium for Basic Long-Term Insurance $200 Daily Benefit With Inflation Protection 5% Compounded Per Year] - <Table> - Nat'l Ass'nof Ins. Commissioners, A Shopper's Guide To Long-Term Care Insurance, at 30 (2013)
III. PUBLIC POLICY AND A FAIR READING OF THE WARRANTECH HOLDING SUPPORT THE LIQUIDATOR'S APPLICATION FOR DECLARATION REGARDING POLICYHOLDER CLAIMS FOR NON-GA POLICY BENEFITS.
The application of Warrantech's holding to a life and health insurer liquidation so as to bar access to the insolvent's estate assets beyond guaranty association limits would be unprecedented.
Policyholders typically have been able to seek additional "policyholder-level" claims against a liquidated insurer's estate assets for any claims above guaranty association coverage limits.
If this Court were to apply Warrantech in the manner intended by the Health Insurers, policyholders would lose that ability, a result that could in future liquidations permit shareholders access to estate assets ahead of policyholders, a perverse outcome the General Assembly surely never intended.
2021 1008 - In Re: Penn Treaty Network America - No. 1 PEN 2009 - Insurance Company in Liquidation Liquidator's Brief in Support of Exceptions - 456p
2015 0511 - Proceedings Taken May 11, 2015
THE COURT, Mary Hannah Leavitt: What's going to happen when the guarantee associations take over these policies is that their policyholders, who had nothing to do with this insolvency, are going to make up the difference.
Guarantee associations get their money from insurance companies.
Insurance companies get their money from their policyholders; so you are shifting the burden from one set of policyholders to another.
That's a policy decision that's been made by the legislature, but I think there are problems with holding it up as a model of equity and fairness.
In a global sense I don't think it is very fair; but it doesn't matter because we are not here to talk about the wisdom of the legislature.
We are really here to decide what the legislature has decided we must do in this circumstance.
MS. GLAWE: Exactly right.
That burden shifting is what the legislature and 52 jurisdictions have decided.
THE COURT: That's right.
MS. GLAWE: So that --
THE COURT: I wouldn't hold it up as a wonderful thing.
