Penn Treaty Pushed Toward Biggest Insurer Failure Since 2004

Penn Treaty Network American Insurance Co., the provider of long-term care coverage for 120,000 customers, was pushed by a Pennsylvania regulator toward liquidation in what may be the biggest forced breakup of an insurer in the U.S. in at least five years.

Penn Treaty and a unit “do not have the ability to pay future claims without significant rate increases,” Pennsylvania Insurance Commissioner Joel Ario said yesterday in a statement. “In the current circumstances, those rate increases simply would not be fair to policyholders...”

Bloomberg: Penn Treaty Pushed Toward Biggest Insurer Failure Since 2004