Arizona Insurance Director Charles Cohen has suspended the license of Penn Treaty Network America Insurance Company which will prohibit the company from issuing any new insurance policies in the state. The action came as a result of a finding that the insurer is in hazardous financial condition from excessive losses through June 30 of this year, the most recent date for which it has filed financial results with the state’s Department of Insurance.
Penn Treaty serves as the second largest carrier of long-term care insurance in the state, insuring more than 10,000 policyholders as of Dec. 31, 2000. The order does not affect in-force policies already issued by Penn Treaty in Arizona, and the insurer must continue to renew current policies along with paying claims arising under policies currently in place.
Based in Pennsylvania, Penn Treaty was not declared insolvent and its assets look to be adequate to meet its forecasted claim obligations. The order, however, is being issued to prevent the insurer from taking on additional insurance obligations in Arizona.
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