NU Online News Service, Feb. 12, 2004, 12:29 p.m. EST – California insurance regulators are letting Penn Treaty American Corp., Allentown, Pa., back into the state’s long term care insurance market.[@@]
To do business in California, Penn Treaty must provide an extra unqualified actuarial certification in addition to its regular annual actuarial certification, the company says.
California also reserves the right to require Penn Treaty to put up extra reserves.
Penn Treaty helped develop the modern LTC insurance market, but it ran into problems with regulators in 2001 when regulators suggested that the company’s sales might have outstripped its reserves.
The company suspended sales of new LTC policies, obtained new sources of capital and began applying for permission to resume new LTC sales on a state-by-state basis.
In the past, California residents accounted for about 14% of Penn Treaty’s LTC sales, Penn Treaty says.