We spend a lot of time talking about the various pension ponzi schemes that will inevitably wreak havoc on the global financial system at some point in the not so distant future. That said, you should also be keeping an eye on so-called long-term-care (LTC) health insurance providers who, as Penn Treaty Network of America Insurance teaches us this morning, have been perpetuating a ponzi scheme of their own.
After eight full years of legal battles between state regulators, investors, and policyholders, Pennsylvania Court Judge Hannah Leavitt signed off on a plan Wednesday to liquidate Penn Treaty Network America Insurance and its affiliate, American Network Insurance, the largest such health insurance liquidation in history. The decision leaves solvent insurers, their owners, and customers to pick up the cost for more than 70% of the up to $4.6 billion in projected long-term-care claims expected for 76,000 aging Penn Treaty customers nationwide.
Pennsylvania Insurance Commissioners Teresa Miller said that after a grueling eight-year legal battle the companies' financial difficulties were deemed "too great to be remedied." Per the PA Insurance Department:
Insurance Commissioner Teresa Miller today announced the Commonwealth Court approval of petitions to liquidate Penn Treaty Network America Insurance Company and American Network Insurance Company, with policyholder claims to be paid through the state guaranty association system, subject to statutory limits and conditions.
"After a long and difficult eight-year legal process, the Court's decision to approve the liquidation recognizes the companies' financial difficulties are too great to be remedied, and that consumers are best protected through the state guaranty association system," Commissioner Miller said.
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yea thats ugly and more will come
ReplyDeleteWait.
ReplyDeleteDid he say that "...consumers are best protected through the state guaranty association system."????
FIRST, these companies, supposedly HIGHLY regulated, were allowed to pay their exec's MILLIONS and run the company right into the ground.
Now (surprise!!) "we, the people" get to give them MORE MONEY to fix their incompetence and our "leaders" call that "protecting us".
?????? seriously????
Protecting us???
ONLY a politician could say that with a straight face.
How about protecting us from further damages by JAILING them???
Or hanging, just as good.
Stop stop stop taking tax dollars to save companies that are, or were, too stupid to make a profit. That ain't MY fault, except in the world of politics.