We first reported on the collapse of long term care insurance carrier Penn-Treaty in late '09. Hard to believe that 2-and-a-half years later, this is still making news.
But it is, and not in a good way:
"[I]n an unprecedented decision of significant national consequence, the Commonwealth Court of Pennsylvania has disallowed efforts by the Pennsylvania Insurance Department (PID) to liquidate ... Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company."
The ruling seems to hinge on the Court's belief that the company can be "rehabilitated" (a fancy word for "brought back to life"). This is a potentially historic ruling because it marks "the first time a petition to liquidate an insurance company has been defeated in Pennsylvania." By contrast, these things are usually rubber stamped once the Department of Insurance has deemed the case hopeless.
We've been offered the opportunity to speak with someone "in the know" about this case and its national implications (whatever these may be), and have expressed an interest in doing so. More to follow (fingers crossed hopefully).
But it is, and not in a good way:
"[I]n an unprecedented decision of significant national consequence, the Commonwealth Court of Pennsylvania has disallowed efforts by the Pennsylvania Insurance Department (PID) to liquidate ... Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company."
The ruling seems to hinge on the Court's belief that the company can be "rehabilitated" (a fancy word for "brought back to life"). This is a potentially historic ruling because it marks "the first time a petition to liquidate an insurance company has been defeated in Pennsylvania." By contrast, these things are usually rubber stamped once the Department of Insurance has deemed the case hopeless.
We've been offered the opportunity to speak with someone "in the know" about this case and its national implications (whatever these may be), and have expressed an interest in doing so. More to follow (fingers crossed hopefully).
[Hat Tip: Robin Ireland]
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