A nonprofit long-term care insurance (LTCI) company is reinsuring a closed block of LTCI policies written by Teachers Protective Mutual Life Insurance Company.
Senior Health Insurance Company of Pennsylvania (SHIP), a unit of the Senior Health Care Oversight Trust, said it has agreed to start by providing 100 percent coinsurance for the Teachers Protective LTCI business.
SHIP said it will seek to assume the block into own its business.
“The transaction has obtained all required regulatory approvals necessary to proceed,” SHIP said.
SHIP and the trust that controls it were formed to oversee blocks of LTCI business written by subsidiaries of the company that later became CNO Financial Group Inc. (NYSE:CNO)
Teachers Protective is a policyholder-owned insurer founded in 1912. It sold the policies in the LTCI block SHIP is reinsuring from 1992 through 2005 in Ohio, Pennsylvania and Virginia.
SHIP and Teachers Mutual have not said how many Teachers Mutual LTCI policies SHIP will be reinsuring. In 2014, SHIP applied for permission from Pennsylvania regulators to increase premiums for holders of 1,662 LTCI policies.
Brian Wegner, president of SHIP and SHIP’s Fuzion LTCI administration affiliate, said in a statement that SHIP and Fuzion are “committed to helping transform the long-term care industry into a position of strength.”
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