NU Online News Service, March 21, 2003, 11:43 a.m. EST – Penn Treaty American Corp., Allentown, Pa., says it is hoping it can get back into the California long-term care insurance market by June 30.
The company stopped selling new LTC policies in late 2001, after regulators said it needed more capital. California is one of the states that has been slow to let Penn Treaty resume selling new policies.
The California Department of Insurance has now agreed to let Penn Treaty back in if the company complies with the state’s new disclosure and pricing standards; gets at least two separate actuarial certifications to show that it has enough reserves to back its policies; and voluntarily stops writing new business in California if it has trouble getting an unqualified actuarial opinion.
“The company believes that each of these conditions, except for a second actuarial certification, is consistent with its regulatory requirements in all states,” Penn Treaty says.
Penn Treaty says it believes the request for a second actuarial certification is also reasonable, because the second certification will help provide “additional assurance to all states.”