MY ANSWER TO MR. LISI

ROGER LISI
HARRISBURG REGIONAL MANAGER
PENNSYLVANIA INSURANCE DEPARTMENT
BUREAU OF CONSUMER SERVICES
1209 STRAWBERRY SQUARE
HARRISBURG, PA 17120
rlisi@state.pa.us
fax: 717-787-8585

DEAR MR. LISI,

I AM AWARE OF THE MA. GUARANTEE FUND. IT WILL BUT PAY 1 1/2 YEARS OF MY RENT.
AND, ALTHOUGH I'M A MASSACHUSETTS RESIDENT, THE LONG TERM CARE INSURANCE CONTRACT I BOUGHT IS UNDER THE JURISDICTION OF PENNSYLVANIA AS ARE ALL OTHER LTC POLICIES NOW RESIDING IN THE SENIOR HEALTH INSURANCE COMPANY OF PENNSYLVANIA (THE TRUST).

I APPRECIATE THAT IN THE EVENT OF INSOLVENCY, I WOULD BE INFORMED. HOWEVER, MY MORE IMMEDIATE QUESTION IS: WHAT WOULD THE INSURANCE COMMISSIONER DO IN THIS EVENT? THE FACT THAT I WOULD BE INFORMED GIVES ME NO COMFORT.

I'D BE PARTICULARLY INTERESTED IN THE FOLLOWING: BEFORE THE TRANSFER, DID CONSECO MEET YOUR STATE'S STATUTORY RESERVE REQUIREMENT FOR IT'S LONG TERM CARE BUSINESS? (I'M CERTAIN THAT'S A MATTER OF PUBLIC RECORD.) DOES THE STATUTORY RESERVE REQUIREMENT APPLY TO THE INDEPENDENT TRUST?

MY FEELING IS, IF PRIOR TO THE ESTABLISHMENT OF THE TRUST, AND IN THE EVENT CONSECO'S RESERVES WERE INSUFFICIENT, THIS SHOULD HAVE BEEN ASSIGNED TO THE PENNSYLVANIA COMMONWEALTH COURT FOR THE PURPOSE OF REHABILITATION OF SAID POLICIES.

THIS WOULD BE CONSISTENT WITH THE TREATMENT OF PENN TREATY INSURANCE WHICH, LIKE CONSECO, OVERSOLD ITS LONG TERM CARE INSURANCE POLICIES AND COULD NOT MEET PENNSYLVANIA'S STATUTORY RESERVE REQUIREMENTS.

PRECISE ANSWERS TO THESE QUESTIONS ARE OF GREAT IMPORTANCE TO ME AS A POLICYHOLDER.

RESPECTFULLY, WILLIAM SILVERMAN