Penn Treaty To Pay Dividend

In January 2009, Pennsylvania Insurance Commissioner Joel Ario put the company’s Penn Treaty Network America and American Network Insurance Company subsidiaries in rehabilitation. Then, in October, Ario asked a state court for permission to liquidate the companies after failing to find a buyer for them. The court has yet to rule on the request.

The companies’ liabilities exceeded their assets by more than $1 billion, according to court filings.

A spokeswoman for the Pennsylvania Insurance Department notes that because UAIG was owned by the holding company, not the insurance companies, the proceeds from its sale would not be covered by the rehabilitation proceedings.