FINANCIAL SERVICES COMMISSION
GOVERNOR
| OFFICE OF INSURANCE REGULATION | ALEX SINK |
CHIEF FINANCIAL OFFICER
BILL MCCOLLUM
ATTORNEY GENERAL
CHARLES BRONSON
COMMISSIONER OF AGRICULTURE
KEVIN M. McCARTY
COMMISSIONER
August 4, 2008
SENT VIA E-MAIL & U. S. CERTIFIED MAIL
Mr. William W. Hunt, Jr., President
Penn Treaty Network America Insurance Company
3440 Lehigh Street
Allentown, Pennsylvania 18103-7001
Re: Penn Treaty Network America Insurance Company
Dear Mr. Hunt:
The Florida Office of Insurance Regulation (“Office”) has received the May 31, 2008 monthly financial statement submitted on behalf of Penn Treaty Network America Insurance Company (“Company’), as well as the supplemental information submitted by the Company on July 11, 2008.
Period of Suspension
On June 4, 2007, the Office entered Order number 90386-07, which suspended Company’s certificate of authority for a period of 12 months. A copy of that Order is attached as Exhibit “A”. Regarding the duration of suspension, Section 624.421(3), Florida Statutes, states:
If the suspension of the certificate of authority is for a fixed period of time and the certificate of authority has not been otherwise terminated, upon expiration of the suspension period the insurer’s certificate of authority shall be reinstated unless the office finds that the insurer is not in compliance with the requirements of this code. The office shall promptly notify the insurer of such reinstatement, and the insurer shall not consider its certificate of authority reinstated until so notified by the office. If not reinstated, the certificate of authority shall be deemed to have expired as of the end of the suspension period or upon failure of the insurer to continue the certificate during the suspension period in accordance with subsection (2), whichever event first occurs.
•••
ROBERT A. WILLIS • DIRECTOR • LIFE & HEALTH FINANCIAL OVERSIGHT
200 EAST GAINES STREET •TALLAHASSEE, FLORIDA 32399-0327 •(850) 413-5050 •FAX (850) 488-7061
website: www.floir.com • Al.Willis@floir.com
Affirmative Action / Equal Opportunity Employer
William W. Hunt, Jr.
August 4, 2008
Page 2
Calculation of Surplus Deficiencies
Based upon a review of the Company’s May 31, 2008 monthly financial statement, filed June 25, 2008, as well as the supplemental information submitted by the Company on July 11, 2008, covering the period between May 31, 2008 and June 4, 2008, the Office is unable to find that the Company is in compliance with the Florida Insurance Code. Specifically, the Company’s excess capital and surplus is statutorily deficient. The deficiency amount is the reported capital and surplus less: 1) the capital and surplus required by Section 624.408(1)(a) 3., Florida Statutes, and 2) the excess investment in subsidiaries and/or affiliates as defined by Sections 625.151(3) and 625.325, Florida Statutes.
Therefore, based on the information provided by Company in its May 31, 2008 financial statement and the supplemental information provided by Company on July 11, 2008, and pursuant to Section 624.421(3), Florida Statutes, the Office finds that Company is not in compliance with the Florida Insurance Code. Thus, Penn Treaty Network America Insurance Company’s certificate of authority shall be deemed to have expired as of the end of the suspension period, on June 4, 2008.
Sincerely,
/s/ R A Willis
Robert A. Willis, Director
