News headlines on the failure of long-term worry insurer Penn Treaty American Corp. Of Allentown, Pennsylvania, underscore to while failures of U.S. Insurers are rare, they are feasible.
The New York Times reports to the order from state the system calling pro the bankruptcy of the medium-sized insurer and the closure of its operations leaves tens of thousands of Penn Treaty policyholders in limbo.
The pleasant news is to a safety clear exists to save from harm policyholders.
For decades, life/health (including long-term care) and annuity policyholders, as well as property/casualty insurance customers produce been protected hostile to the collapse of an insurance company through pardon? Is famous as a warranty store orderliness.
So in this situation, state life and vigor insurance warranty funds will pick up again to service the policies of Penn Treaty policyholders, ensuring to they pick up again to receive coverage, despite the insurer’s failure.
To be eligible pro warranty store coverage protection, it is essential to policyholders pick up again to wage their statement premiums in complete and on spell.
Maximum levels and types of policies covered by state warranty funds vary from state to state. Here is a keep a record of the highest amount apiece state’s warranty store will wage.
Added in turn on the Penn Treaty Network America Insurance Company bankruptcy via the National Organization of Life & Health Insurance Guaranty Associations.