FOR IMMEDIATE RELEASE:
4/18/2017
FOR INFORMATION, CONTACT:
Tracy Imm, 410-468-2206

Maryland Policyholders Affected by Liquidation of Penn Treaty and American Network Insurance Companies

Maryland Life and Health Insurance Guaranty Corporation to provide coverage for policyholders, up to $300,000 cap

 
BALTIMORE – Insurance Commissioner Al Redmer, Jr. has announced that over 1,700 Marylanders have been affected by the Penn Treaty liquidation that occurred in Pennsylvania; however the Maryland guaranty association system has assumed responsibility for Maryland policyholders’ claims, subject to statutory limits and conditions.
 
The Maryland Life and Health Insurance Guaranty Corporation will provide coverage for Maryland’s Penn Treaty and American Network policyholders, up to the allowed $300,000 cap. Policyholders are still responsible for paying premiums in full and on time. Failure to do so will result in a loss of benefits, including guaranty association coverage protection. Each policyholder has been sent a customized proposal of options from Penn Treaty. Penn Treaty has created a list of frequently asked questions that policyholders can access here.
 
The decision to liquidate the two insurance companies comes after multiple attempts to do so within recent years, due to the companies’ insolvency. Penn Treaty is projected to have depleted its assets by 2018, while American Network is projected to have depleted its assets by 2023. The companies were previously in rehabilitation before a previous petition for liquidation was filed by the Pennsylvania Insurance Commissioner on October 2, 2009. Those liquidation petitions were denied, leaving the companies in business for seven more years before new liquidation petitions were approved.

Important Information for Penn Treaty and American Network policyholders:
 
The process to pay premiums is the same. To continue being eligible for guaranty association coverage, policyholders must continue paying policy premiums in full and on time. Failure to pay policy premiums in full and on time may cause the policy to terminate and benefits will be lost, including guaranty association coverage.
 
Bank drafts: No changes are necessary. Premiums will continue to be deducted from bank accounts per existing agreements.
 
Mailed payments: No changes are necessary. Premium payments should continue to be mailed to Penn Treaty, P.O. Box 70257, Philadelphia, PA 19176-0257.
 
The process to submit a claim continues to be the same, unless notified by the company in the future.
 
File a new claim or ask question about the claim process: Continue to call 1-800-362-0700 (Monday – Friday, 8 a.m. – 6:30 p.m. ET).
 
Submit claim information: Continue to send documents to the same address: Penn Treaty, Attn: Claims Department, P.O. Box 7066, Allentown, PA 18105-7066. Or continue to send via fax to 610-965-6962.
 
About the Maryland Insurance Administration
 
The Maryland Insurance Administration is an independent State agency charged with regulating Maryland’s $28.5 billion insurance industry. For more information about the Insurance Administration, please visit www.insurance.maryland.gov or follow us on Facebook at www.facebook.com/MDInsuranceAdmin or Twitter at @MD_Insurance.
 
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