NU Online News Service, April 23, 2003, 11:17 a.m. EDT – Penn Treaty American Corp., Allentown, Pa., says it has received regulatory approval to resume selling long-term care insurance in Michigan.
But Penn Treaty, which will be selling coverage through its Penn Treaty Network America Insurance Company subsidiary, notes that it must get approval from the Michigan insurance commissioner before it can generate more than $1.5 million in annual sales to Michigan residents.
Michigan once accounted for about 1.5% of Penn Treaty’s sales, the company says.
Penn Treaty helped develop the modern LTC insurance market, but it stopped selling new LTC policies in September 2001 because of regulators’ concerns that its sales were outstripping its capital reserves.
The company has been working since then to raise capital and get back into the LTC market.