Florida regulators want to shut an insurer out of the state’s long term care insurance market for 12 months because of concerns about a financial statement filing delay.
The Florida Office of Insurance Regulation has told Penn Treaty Network America Insurance Company that its certificate of authority to conduct business in Florida has been suspended for at least 12 months because the company did not file its 2006 audited statutory financial results on or before June 1, according to the company’s parent, Penn Treaty American Corp., Allentown, Pa.
Penn Treaty says the financial condition of the subsidiary is strong and notes that the subsidiary has received a financial statement filing extension from the Pennsylvania Department of Insurance.
Penn Treaty has filed an immediate appeal with the Florida OIR and is seeking a review of the suspension notice by an administrative law judge, the company says.
Penn Treaty the suspension move “by the Florida OIR premature and is vigorously pursuing a stay of the order or reversal,” the company says. “The company is actively working with the Florida OIR in reaching a resolution as its audited financial statements are being finalized.”
Florida sales accounted for 5.9% of Penn Treaty’s new business applications for the first 5 months of 2007, and the amount should be immaterial to the company’s anticipated financial performance, Penn Treaty says.