Long-Term Care Insurer Penn Treaty American Fails

The cost to keep reinsurance in place became too expensive for Penn Treaty, Placey said.

Penn Treaty Network America was rated D+ and American Network Insurance Company was rated C- by TheStreet.com Ratings for financial strength. Both were downgraded to an F Thursday. A third subsidiary domiciled in New York, American Independent Network Insurance Co., remains solvent and has not been taken over by the New York state regulators. It has been downgraded to a D.

TheStreet.com Ratings issues financial strength ratings on each of the nation's 8,600 banks and savings and loans which are available at no charge on the Banks & Thrifts Screener. In addition, the Financial Strength Ratings for 4,000 life, health, annuity, and property/casualty insurers are available on the Insurers & HMOs Screener.