HELENA, MT –Montana Commissioner of Securities and Insurance Matt Rosendale announced today that 184 Montanans are affected by the Penn Treaty liquidation that occurred in Pennsylvania earlier this month.
The Commonwealth Court of Pennsylvania approved petitions to liquidate Penn Treaty Network America Insurance Company and American Network Insurance Company at the beginning of March. 184 Montanans are policyholders with those companies.
The Montana Life & Health Insurance Guaranty Association will provide coverage for Montana’s Penn Treaty policyholders, up to the allowed $300,000 cap.
Letters explaining the liquidation and explaining what to do moving forward were mailed to Montana policyholders on March 17.
The most important thing for policyholders to know is that they should continue paying premiums and filing claims as they did before the liquidation. A detailed FAQ is available here. Questions about individual policies should be directed to Penn Treaty’s policyholder services at 1-800-362-0700. More information is also available at www.PennTreaty.com.
The two companies have about 76,000 policyholders nationwide, with 184 of those residing in Montana. More than 98 percent of Penn Treaty and American Network’s policies are long-term care insurance.
Long-term care insurance has developed significant challenges over the past several years with insufficient policy pricing, claims exceeding expectations, high benefits costs, and low investment returns. However, many companies operating in Montana are better positioned than Penn Treaty to handle the financial challenges of the industry. Over 27,000 Montanans have some type of long-term care insurance policy.
“Montanans should consider consulting with professional insurance agents or advisers before entering into long-term insurance contracts,” Commissioner Rosendale said. “While we have many companies offering great long-term care policies in Montana, others in this industry have faced significant challenges in recent years, and consumers should always do their due diligence before purchasing a policy. I’ve made it a top priority to investigate how we can minimize these types of problems going forward.”