Penn Treaty to Be Liquidated?...

[Russ]

Looks like it's close to the end for Penn Treaty...Penn Treaty Pushed Toward Biggest Insurer Failure Since 2004 - Bloomberg.com

 

[MedSuppPro]

Thanks, Russ (I guess ).

Now how do we explain this to our clients?

 

[Russ]

Thanks, Russ (I guess ).

Now how do we explain this to our clients?

That's a tough question to answer. If their health is bad, they could be screwed(stuck with a liquidated company).

 

[somarco]

That block could be sold to another carrier who would have the right to raise rates. Future claims could also be managed by an carrier appointed via receivership with any shortfall covered by the state guaranty fund.

The LTCi business has been on shaky ground from the first. Even major carriers missed the mark and under-priced the product. There have been a lot of consolidations of LTCi blocks in the past. May be more in the future.

If so, watch for Congress to decry the lack of competition and create a public option . . .

 

[GonnaFlyNow]

Looks like it's close to the end for Penn Treaty...Penn Treaty Pushed Toward Biggest Insurer Failure Since 2004 - Bloomberg.com

it's about time.
it would have been better for everybody if they'd been taken over 6 or 7 years ago.

 

[ronmelton3]

Thanks, Russ (I guess ).

Now how do we explain this to our clients?

You really didn't think that the were going to pay claims anyway did ya?
They are on Clark Howard's list (That guy on CNN) of companies not to buy from. Seems according to the NEW York Times, they do their best to underwrite at claim time. (years later)

 

[Cenla Agent]

You really didn't think that the were going to pay claims anyway did ya?
They are on Clark Howard's list (That guy on CNN) of companies not to buy from. Seems according to the NEW York Times, they do their best to underwrite at claim time. (years later)

If it's the same story about LTCi I'm thinking of, Bankers and Penn Treaty were highlighted for doing that.

 

[ronmelton3]

If it's the same story about LTCi I'm thinking of, Bankers and Penn Treaty were highlighted for doing that.

That's correct.

 

[theinsuranceman]

Just another example of why the Co. with the cheapest rates is NOT always in the customer's best interest.

 

[Graham]

It's the old blocks of business that took them down, back then everyone was mispricing LTC but mispricing substandard LTC, well you see what happens. The newer business (even substandard) was performing well but not well enough...