Penn Treaty rehabilitator posts update

In another document, Eugene Woznicki, the chairman of Penn Treaty and American Network, has asked the court to make the rehabilitation team give him copies of messages they have exchanged with the rehabilitation team.

In May 2012, Woznicki succeeded at blocking efforts by the rehabilitation team to liquidate Penn Treaty. The rehabilitation team is appealing a court decision blocking liquidation.

Woznicki says he needs to see what the rehabilitation team is saying in an efforts to organize the appeal.

“The content of such communications made by the rehabilitation team promoting liquidation of the companies to other regulators is relevant to whether the rehabilitator is undertaking earnest, meaningful, and legitimate rehabilitation efforts as ordered by this court,” Woznicki said.

Woznicki said the same lawyer who filed the appeal of the liquidation decision is the main legal advisor to the rehabilitation efforts. 

Attorney-client privilege should not protect the rehabilitation team’s efforts to round up outside support, Woznicki said.

Penn Treaty and American Network helped create the modern U.S. LTCI industry, then ran into financial trouble. Pennsylvania insurance regulators put Penn Treaty and American Network in rehabilitation in January 2009. 

See also:

• Regulator files Penn Treaty rehabilitation plan
• Penn Treaty parties spar over policyholder panel proposal
• Pa.: Protecting Penn Treaty Policyholders the Top Priority