My article "Long-Term Care Insurance" (The CPA Journal, September 2003) incorrectly stated that Penn Treaty Network America Insurance Company (PTNA) went bankrupt in 2001. In fact, PTNA has never filed for bankruptcy. The article also states that New York State allowed PTNA to raise premiums more than 40% so it could continue to service its LTCI policies. This statement is also incorrect. According to information received from PTNA, the company is not licensed in New York and therefore does not sell insurance in the state of New York. American Independent Network Insurance Company of New York (AINIC), however, a PTNA affiliate, does market LTCI products in New York. AINIC has not filed for, nor has it ever received approval of, rate increases on its LTCI products in New York. PTNA and AINIC, along with American Network Insurance Company, are wholly owned direct and indirect subsidiaries of Penn Treaty American Corporation (NYSE: PTA).
I'm grateful for the opportunity to correct and clarify misstatements in my article, and to apologize for these errors.
Alfred C. Clapp, Jr.
President, Financial Strategies and Services Corp.