Penn Treaty American Corp. says one of its main operating subsidiaries will stop selling new Florida insurance policies while it is clearing up paperwork delays.
Penn Treaty, Allentown, Pa., says the unit, Penn Treaty Network American Insurance Company, will temporarily suspend sales until it files its 2005 statutory audit report and undergoes a review by the Florida Department of Insurance Regulation.
“PTNA currently anticipates that it will file its audited statutory report within approximately 10 business days,” Penn Treaty says.
The Pennsylvania Insurance Department, PTNA’s home state, already has given PTNA an extension to file its report as late as Aug. 31, “PTNA has voluntarily agreed with the Florida Department to temporarily suspend new sales until its report is filed and reviewed,” Penn Treaty says.
“The voluntary cessation in Florida calls for the filing of the report and compliance review by the Florida Department of Insurance Regulation within 60 days,” Penn Treaty says.
Florida sales have been accounting for about 6% of PTNA’s new applications, Penn Treaty says.
Standard & Poor’s Ratings Services, New York, which assigns a B rating to PTNA, put out a statement noting that the current announcement about the temporary Florida suspension will have no effect on the company’s ratings.
If PTNA does not file the statutory audit report by the end of August and the company fails to resume selling policies in Florida, “the resulting decline in PTNA’s business profile would likely cause Standard & Poor’s to lower the ratings by 1 notch,” S&P says.