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About these Questions

These Frequently Asked Questions were prepared by the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) and Penn Treaty. They are intended to respond to common questions that policyholders may have about the liquidation of the companies and their ongoing insurance coverage.

Liquidation Court Proceedings

1. What is the current status of Penn Treaty and American Network?

Starting March 1, 2017, Penn Treaty and American Network were placed in liquidation by order of the Commonwealth Court of Pennsylvania. Penn Treaty and American Network had been in Court-supervised rehabilitation since 2009, with policy and claim administration under the supervision of the Pennsylvania Insurance Commissioner from Penn Treaty’s office in Allentown, Pennsylvania.
 

2. Why were Penn Treaty and American Network ordered into liquidation?

The Pennsylvania Insurance Commissioner worked with consulting firms to review the companies’ current financial condition and future financial projections. The results indicate that the companies do not have adequate assets (including premiums to be collected in the future) to fully pay for expected future claims.  In addition, the results indicate that the deficit to pay future claims is substantial.
 

3. What will happen to my insurance policy now that Penn Treaty and American Network are being liquidated and state guaranty associations are involved?

The guaranty associations will provide specified coverage to Penn Treaty and American Network policyholders, based on state laws.  The guaranty association will manage your policy and claims, your policy benefits may change due to state limits, but your process for filing claims and paying your premiums will stay the same.
 

Life and Health Insurance Guaranty Associations

4. What is a life and health insurance guaranty association?

Every state (including the District of Columbia and Puerto Rico) has a life and health insurance guaranty association to protect state residents.  The guaranty association provides continuing benefits when a life or health insurance company goes out of business.

All insurance companies (with limited exceptions) licensed to write life and health insurance or annuities in a state must be members of the state’s life and health insurance guaranty association.  If a member company becomes insolvent, the guaranty associations continue coverage and pay claims in accordance with state laws.
 
5. What is the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA)?

NOLHGA is a voluntary association made up of the life and health insurance guaranty associations of all 50 states and the District of Columbia. When insurers licensed in multiple states are close to becoming insolvent (unable to pay debts owed) or are declared insolvent, NOLHGA assembles a task force of guaranty association officials. This task force analyzes the companies’ policies, ensures that covered claims are paid, and arranges for covered policies to be transferred to a healthy insurer (when possible).

Since its creation in 1983, NOLHGA has assisted its member guaranty associations in guaranteeing more than $22 billion in coverage benefits for policyholders and annuitants of insolvent member companies. In that time, the associations have provided protection for more than 2.5 million policyholders and worked on more than 100 multi-state insolvencies. In the case of Penn Treaty and American Network, NOLHGA has assisted certain guaranty associations in forming LTC Re. The section below has more information about LTC Re.
 

Claims in Excess of Guaranty Association Limits

6. If my policy benefits are higher than the state guaranty association coverage limits, do I lose the difference in coverage?

Claims that exceed the coverage limit but are within the policy limits will be processed differently. Those claims will be processed by the Penn Treaty and American Network Liquidator for possible additional coverage. Those claims may be paid from the remaining Penn Treaty or American Network assets.  If your policy benefits are higher than the state guaranty association coverage limits, you will receive information about these possible additional benefits in a separate notice.
 

Contact Information

7. Who can answer questions about Penn Treaty and ANIC's liquidation?

If you have questions about liquidation, call 1-800-222-3469.
 
8. Who can answer questions about my policy?

If you have policy or claim questions, you should contact TriPlus Services at 1-800-362-0700, or visit https://www.nolhga.com/penntreaty/home.cfm.
 
9. Who can answer questions about my guaranty association coverage?

The guaranty association providing your coverage can answer additional questions about coverage. You can find contact information for your guaranty association at www.nolhga.com/policyholderinfo/main.cfm.