NU Online News Service, July 30, 2:38 p.m. – Penn Treaty American Corp., Allentown, Pa., says it has received approval to return to selling long-term care insurance in Florida, a state that once accounted for 25% of the company’s LTC insurance sales.
Penn Treaty stopped selling LTC insurance in Florida and most other states in 2001, after insurance regulators said the company’s capital reserves had fallen below the minimum required level.
Penn Treaty recently improved its capital position by obtaining new capital and setting up a reinsurance program for the LTC insurance policies already on its books.
Penn Treaty will now sell LTC policies in Florida through its largest subsidiary insurer, Penn Treaty Network America Insurance Company, the company says.
Penn Treaty says it has agreed with Florida insurance regulators to make sure that it has enough statutory capital to support any new LTC business that it writes.