Long-Term Care Insurer Penn Treaty American Fails

Pennsylvania regulators are mulling options that include selling or liquidating long-term care insurer Penn Treaty American Corp. (PTYA Quote), two days after a judge ordered two of its subsidiaries into rehabilitation.

According to court order issued by the Commonwealth Court of Pennsylvania, the rehabilitator will continue to pay claims on all existing policies held by Penn Treaty Network America Insurance Co. and its much smaller subsidiary, American Network Insurance Co. Rosanne Placey, a spokesperson for the Pennsylvania Insurance Commissioner, said that in these very early stages their goal is to decide what is viable for the company.

No new policies will be sold under the rehabilitation although the intention is to renew existing policies, she said. ...