Penn Treaty Gets Surplus Extension From Florida

NU Online News Service, Jan. 2, 10:27 a.m. – Penn Treaty American Corp., Allentown, Pa., says the Florida Insurance Department has given it until Jan. 31 to raise $23 million in additional statutory surplus for the company’s largest insurance subsidiary.

The Florida department had previously required Penn Treaty to come up with the extra surplus by Dec. 31, 2002.

Penn Treaty helped create the modern long-term care insurance market, but it ran into trouble with insurance regulators in 2001 because of the regulators’ fear that it had too little capital to support its policies.