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.
(Related: 5 Views From the LTCI Bleachers)
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.
NOLHGA and LTC Re were using the employees of the old Penn Treaty and American Network to administer the LTCI policies, and keeping those employees in Penn Treaty’s old headquarters in Allentown, Pennsylvania.
Organizers of the 2019 Top Workplaces survey ranked Penn Treaty first among midsize employers, in part because of activities such as mini golf and an Oscar party, according to The Morning Call. The Morning Call reported in that article, which was published in March, the Penn Treaty still had 166 employees..
TriPlus said that “more than 100 Penn Treaty employees will become immediate TriPlus associations, with an additional group to follow on Jan. 1, 2020, thus offering continuous employment to most of the current workforce.”
All of the Penn Treaty employees hired will stay in the current Allentown offices, TriPlus said.
TriPlus is an offshoot of Ability Reinsurance (Bermuda) Ltd., a reinsurer that tried to buy and revive blocks of LTCI business starting in 2007. Ability Re ran into problems with its LTCI block deals, but the LTCI block administrator Ability Re formed, TriPlus, stayed in operation.
TriPlus is based in Hopkinton, Massachusetts. It also has offices in Chicago, Omaha, and Portland, Maine,
— Read 9 Long-Term Care Insurance Claim Whisperer Secrets, on ThinkAdvisor.