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January 07, 2009 at 04:13 AM
A state court has given Pennsylvania Insurance Commissioner Joel Ario permission to put Penn Treaty Network America Insurance Company in rehabilitation, Ario says.
The Pennsylvania Commonwealth Court, an intermediate appellate court, also has given Ario permission to put American Network Insurance Company, a Penn Treaty Network subsidiary, in rehabilitation.
Penn Treaty American Corp., Allentown, Pa., the parent of Penn Treaty Network and America Network, announced in October that Penn Treaty Network, its primary insurance subsidiary, would become insolvent unless the subsidiary found new financing to replace reinsurance agreements that were terminated by Imagine International Reinsurance Ltd., Hamilton, Bermuda.
Penn Treaty American helped create the modern U.S. LTC insurance industry. Its subsidiaries have done business in all 50 states and the District of Columbia, and they provide LTC insurance for more than 126,000 people.
The Commonwealth Court rehabilitation order gives Ario “direct authority” to preserve Penn Treaty Network assets and to oversee the company’s finances and operations, according to officials at the Pennsylvania Department of Insurance.
