Penn Treaty American Suspends Sales of Long-Term Care Products

According to a company press release, Penn Treaty American Corp. has voluntarily suspended new sales of its long-term nursing facility and home health-care insurance products in all states except New York. The move was made because the company's corrective action plan remains under consideration by the Pennsylvania Insurance Dept. Penn Treaty had anticipated that consideration of the plan would be completed by Sept. 1. In light of the ongoing consideration, it temporarily suspended sales of the referenced products, which would normally result in early losses and reductions to capital under statutory accounting practices.

The corrective action plan is for Penn Treaty Network America Insurance Co., a subsidiary of Penn Treaty, and is intended to generate additional statutory capital for its subsidiary operations.

Penn Treaty's insurance subsidiaries will not accept new applications for the referenced products until Dec. 15, unless they receive earlier regulatory approval. The suspension of sales does not affect policies pending through Sept. 10 or policy renewals, and it does not include the company's disability and Medicare supplement product lines, which are sold to other companies.

2001 Accounting Guidelines Manual Available

The 2001 Accounting Guidelines Manual has been posted on the NOLHGA Web site (www.nolhga.com). New items include allocation of direct and indirect administrative expenses to lines of business along with allocation examples, as well as updates to the guidelines for the abatement or deferral of assessments and the IRS Form 990 sections.

The manual is posted in the restricted Confidential Access section of the site and is in pdf file format; users will need Acrobat Reader to open the file. The 2000 version of the manual is also available.

Please contact Paul Peterson (703.787.4119) if you have any questions regarding the manual or if you cannot access the file.

Directory Correction for Michigan

The phone number for the Michigan Life & Health Insurance Guaranty Association in the NOLHGA Membership Directory is incorrect. The correct number is 517.372.3863.