Guaranty funds have hired TriPlus Services Inc. to administer tens of thousands of long-term care insurance (LTCI) policies that were orphaned by the 2017 failure of two large LTCI issuers.
The National Organization of Life & Health Insurance Guaranty Associations (NOLHGA) and LTC Reinsurance PCC (LTC Re) today said they have hired TriPlus to provide accounting, policyholder services and claims services for the LTCI policies that were written by Penn Treat American Insurance Company and Penn Treaty’s sister company, American Network Insurance Company.
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TriPlus took charge of administering the Penn Treaty and American Network LTCI policies today.
The Pennsylvania Department of Insurance began liquidating Penn Treaty in 2017. About 76,000 Penn Treaty and American network LTCI policies were in force when the companies failed.
Most states have guaranty associations that collect assessments from member insurers to help cover the cost of paying a portion of the claims of failed insurers.
For the Penn Treaty and American Network insolvencies, some state guaranty associations are handling the LTCI policy guaranty obligations on their own.
Some state guaranty associations worked with NOLHGA to form LTC Re. LTC Re is a protected cell captive insurance company organized under the laws of the District of Columbia.