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.