Agents and others can submit comments through traditional mail or e-mail. (AP photo/Robert Ray)

If you have an insurance policy from Penn Treaty Network America Insurance Company or its sister company, American Network Insurance Company, watch your mailbox.

The same is true if you have been an agent for either company.

Patrick Cantilo, the special deputy rehabilitator who is managing the companies’ operations, says in a letter posted on the Penn Treaty website that the rehabilitation team is preparing communications to help policyholders and agents understand draft rehabilitation plans that were filed with a state court April 30.

The team hopes to mail the information to agents and policyholders within the next several weeks, Cantilo said.

Agents and policyholders need not take any action until the court acts on the proposed rehabilitation plans, Cantilo said.

The court probably will establish a formal comment period, and the rehabilitation team itself is accepting informal comments at Penn Treaty’s offices in Allentown, Pa., Cantilo said.

The rehabilitation team has suggested that it needs to cut Penn Treaty long-term care insurance (LTCI) policy benefits, increase LTCI policy premiums by an average of 300 percent, or come up with some comparable package of benefits cuts and premium increases.

Interested parties also can e-mail comments to PlanComments@penntreaty.com.

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. 

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