Conseco Senior Health converted to a trust: Senior Healthcare Company of Pennsylvania
BY BILL SILVERMAN
The commissioner of insurance of Pennsylvania has chosen to disenfranchise thousands of senior citizens with a mere stroke of his official pen. He chose to be covert, to quote laws to support his decision. Thousands of senior long-term care policies were placed in an independent trust, immediately downgraded by A. M. Best, the premier insurance rating agency. The affected policyholders were not informed of the trust that held their policies.
BEST characterized the trust as a stand-alone entity with insufficient starting capital, and proposed the trust will have to impose a series of rate increases to survive. Furthermore, the trust does not have a statutory minimum capital reserve requirement, nor the necessary oversight for its operations.
Of late, business charlatans have become the topic of the day. They are regularly grilled by congressional committees for transgressions against the public trust.
Some slip through the cracks, yet violate standards of simple decency with silent efficiency.
Creation of the trust was pre-labled a balanced solution with complete transparancy. One wonders, for whom?
The truth be told, this trust conveniently relieved Conseco of a failing block of 142,000 policies; their policies, now not their policies. A simple case of silent corruption, bowing to the mighty.
And who are the true beneficiaries of this clever manipulation of law? Not really hard to imagine: The stockholders!
How does the commissioner slot into this deception?
Friday, February 13, 2009
Tuesday, February 10, 2009
A HOOT AND A HOLLER
the letter below is from robin nolan. robin is with a public relations firm in california and works with frank darras, attorney, specializing in elder care law. he believes conseco along with the pa commissioner snaked their way around legal loopholes, the net effect, creation of this trust. apparantly the commissioner doesn't give a hoot and holler about the ultimate fate of trusting seniors. this strongly illustrates an egrigeous turn to the right, into the matrix of cheating and slimy practices that cast a foul ordor on the current american system of values. one simply has to look at the senate hearing with the securities and exchange commission re the madoff affair. oversight of the terribly obvious scheme, repleat with whistleblowers, didn't spur the commission to do anything proactive. every s.e.c. official interviewed hemmed and hawed and passed the proverbial buck, pleading innocence. frankly, i feel, the real culprit in this matter is the commissioner. the following is a direct quote from one of the respondants during the comment period the commissioner ordered. it is dated sept. 29, 08, one day before the comment period officialy ended. i quote:
"THIS SIR WILL NOT BE A TRUST BUT A TRAVISTY ON THE JUSTICE FOR AGING AMERICA WHO HAVE SAVED AND PAID FOR YEARS ON LONG TERM CARE.
"IF YOU LET THIS HAPPEN IT WILL HAPPEN TO GENWORTH AND ALL THE REST....
"DO NOT LET THIS HAPPEN TO THOSE OF US WHO HAVE LIVED THROUGH WORLD WARS, DEPRESSIONS AND INSULTS OF AGE AND ITS PLAGUES ON THE ELDERLY."
did the commissioner personally read this, and other, letters? does he have aging parents? is he like the u.s. congressmen who saw to it that their sons and daughters did not go to war, but voted for the invasion of iraq?
dear commissioner ario, i know in advance you will plead you simply had no choice; to inform would have created a big hoo-hah and might just have succeeded in stopping the creation of this trust, thereby letting conseco sink under its own greedy weight. and that would have sent a message to the ltc industry: "you good old boys might not have thought so but scruples now must be introduced into your game plans."
there is no excuse for the commissioner's less than moral decision, and for using pa law to avoid a public vetting, and informing policyholders of the existance of the trust that now holds their policies.
bill silverman
"THIS SIR WILL NOT BE A TRUST BUT A TRAVISTY ON THE JUSTICE FOR AGING AMERICA WHO HAVE SAVED AND PAID FOR YEARS ON LONG TERM CARE.
"IF YOU LET THIS HAPPEN IT WILL HAPPEN TO GENWORTH AND ALL THE REST....
"DO NOT LET THIS HAPPEN TO THOSE OF US WHO HAVE LIVED THROUGH WORLD WARS, DEPRESSIONS AND INSULTS OF AGE AND ITS PLAGUES ON THE ELDERLY."
did the commissioner personally read this, and other, letters? does he have aging parents? is he like the u.s. congressmen who saw to it that their sons and daughters did not go to war, but voted for the invasion of iraq?
dear commissioner ario, i know in advance you will plead you simply had no choice; to inform would have created a big hoo-hah and might just have succeeded in stopping the creation of this trust, thereby letting conseco sink under its own greedy weight. and that would have sent a message to the ltc industry: "you good old boys might not have thought so but scruples now must be introduced into your game plans."
there is no excuse for the commissioner's less than moral decision, and for using pa law to avoid a public vetting, and informing policyholders of the existance of the trust that now holds their policies.
bill silverman
Monday, February 9, 2009
MY STORY IN ELDERCARE LAW NEWS
MY STORY HAS BEEN PUBLISHED IN THE WEEKLY EDITION OF THE ELDERCARE NEWS. IT'S THE NAELA BULLETIN, THE PUBLICATION OF THE NATIONAL ACADEMY OF ELDER LAW ATTORNEYS. GO TO:
OR HERE IT IS:
Disaffected assisted living resident becomes LTCI guerilla
---------------------------------------
A showdown between David and Goliath is developing in the long-term care insurance industry. On one side is a large insurance company, Conseco, that last year shifted its long-term care insurance policies to a trust in Pennsylvania where it is incorporated. On the other side is Bill Silverman, a resident of an assisted living facility in Massachusetts. He has turned into a determined citizen activist in terms of demanding accountability of the insurance company, as well as state agencies involved in allowing Conseco to transfer its policy holders to an independent trust which has now assumed responsibility for long-term care insurance benefits. Bill Silverman and others are concerned that the trust is dependent on substantially increased premiums from current policy holders and an unsecured loan from Conseco. They suspect that in the current economic climate, it's only a matter of time before the trust becomes "insolvent."
The story is documented by a blog and web site based in Santa Fe, New Mexico that specializes in commenting on the growing tide of activism among the American public. http://www.guerillaorganizing.org.
Ever since the insurance trust was formed in Pennsylvania in the fall of 2008, Bill Silverman has been working with the tools he has available to get out the word: a cell phone, email account and a blog: http://www.bills2359.blogspot.com. He says that during the public comment period in Pennsylvania, there was no requirement to notify Conseco policy holders of the impending move. Silverman says he only found out about the trust arrangement "by accident" when he asked his broker about Conseco's standing in the insurance industry. Silverman believes that most of the 171,000 individuals impacted still have no idea of what's ahead. The complete story of Silverman taking on the issues brought about by Conseco can be found at: http://www.guerillaorganizing.org/article3.html.
OR HERE IT IS:
Disaffected assisted living resident becomes LTCI guerilla
---------------------------------------
A showdown between David and Goliath is developing in the long-term care insurance industry. On one side is a large insurance company, Conseco, that last year shifted its long-term care insurance policies to a trust in Pennsylvania where it is incorporated. On the other side is Bill Silverman, a resident of an assisted living facility in Massachusetts. He has turned into a determined citizen activist in terms of demanding accountability of the insurance company, as well as state agencies involved in allowing Conseco to transfer its policy holders to an independent trust which has now assumed responsibility for long-term care insurance benefits. Bill Silverman and others are concerned that the trust is dependent on substantially increased premiums from current policy holders and an unsecured loan from Conseco. They suspect that in the current economic climate, it's only a matter of time before the trust becomes "insolvent."
The story is documented by a blog and web site based in Santa Fe, New Mexico that specializes in commenting on the growing tide of activism among the American public. http://www.guerillaorganizing.org.
Ever since the insurance trust was formed in Pennsylvania in the fall of 2008, Bill Silverman has been working with the tools he has available to get out the word: a cell phone, email account and a blog: http://www.bills2359.blogspot.com. He says that during the public comment period in Pennsylvania, there was no requirement to notify Conseco policy holders of the impending move. Silverman says he only found out about the trust arrangement "by accident" when he asked his broker about Conseco's standing in the insurance industry. Silverman believes that most of the 171,000 individuals impacted still have no idea of what's ahead. The complete story of Silverman taking on the issues brought about by Conseco can be found at: http://www.guerillaorganizing.org/article3.html.
Friday, February 6, 2009
THE CONTINUING CORRESPONDENCE WITH MR. LISI
dear mr. lisi
thanks for sending me the commissioner's decision and order.
i have several questions:
the initial capitalization from conseco for senior healthcare company of Pennsylvania (175,000,000), considering the substantial funds it required in the past from conseco, seems to assure a series of future rate increases. what's your views on this?
the term "trust" is mentioned nowhere in the order; the transition seems to be stated such that it appears to be the creation of a new insurance company. can you explain this to me?
the actuarial report commissioned by conseco and its conclusions will define this transaction more completely, yet it is sequestered from public scrutiny. what may conseco have to hide in classifying this document as top secret? and, was the commissioner privy to it?
there seems to be suggestions of profit on the transferring of shares to the new trust. am i misinterpreting this?
after acceptance by the commissioner in november, notices were supposed to be sent to policyholders of the trust's existence shortly thereafter. this, apparently, was not done! why?
would this have anything to do with not allowing policyholders redress of grievances, and the hiding of critical information from those in need to know, all pertaining to first amendment guarantees?
a public meeting, prior to the commissioners decision, could have been held by virtue of questionnaires being sent, then subsequent observations by the commissioner.. in the interest of laws safeguarding consumer rights, what "real" excuse was there for not implementing this? does common law in this instance not supersede obscure pennsylvania statutes?
the trust has no statutory reserve requirements as does an insurance company. is this accurate? and if it is, what state oversight exists as to the trustees' management decisions?
i've asked this before: what procedure takes place by the state in the event of the trust's insolvency?
you've conveyed to me that the trust's cash position amounts to 300,000,000, and the trust reserves are worth 3 billion. will you kindly substantiate these claims?
the trust, from application to acceptance, took approximately 4 months. this, with no requested input from the policyholders directly affected. nor full disclosure from conseco (the actuarial study it commissioned.)
do you see this as an expedient pushing-through of this, very possibly illegal, transaction?
sincerely, william silverman
thanks for sending me the commissioner's decision and order.
i have several questions:
the initial capitalization from conseco for senior healthcare company of Pennsylvania (175,000,000), considering the substantial funds it required in the past from conseco, seems to assure a series of future rate increases. what's your views on this?
the term "trust" is mentioned nowhere in the order; the transition seems to be stated such that it appears to be the creation of a new insurance company. can you explain this to me?
the actuarial report commissioned by conseco and its conclusions will define this transaction more completely, yet it is sequestered from public scrutiny. what may conseco have to hide in classifying this document as top secret? and, was the commissioner privy to it?
there seems to be suggestions of profit on the transferring of shares to the new trust. am i misinterpreting this?
after acceptance by the commissioner in november, notices were supposed to be sent to policyholders of the trust's existence shortly thereafter. this, apparently, was not done! why?
would this have anything to do with not allowing policyholders redress of grievances, and the hiding of critical information from those in need to know, all pertaining to first amendment guarantees?
a public meeting, prior to the commissioners decision, could have been held by virtue of questionnaires being sent, then subsequent observations by the commissioner.. in the interest of laws safeguarding consumer rights, what "real" excuse was there for not implementing this? does common law in this instance not supersede obscure pennsylvania statutes?
the trust has no statutory reserve requirements as does an insurance company. is this accurate? and if it is, what state oversight exists as to the trustees' management decisions?
i've asked this before: what procedure takes place by the state in the event of the trust's insolvency?
you've conveyed to me that the trust's cash position amounts to 300,000,000, and the trust reserves are worth 3 billion. will you kindly substantiate these claims?
the trust, from application to acceptance, took approximately 4 months. this, with no requested input from the policyholders directly affected. nor full disclosure from conseco (the actuarial study it commissioned.)
do you see this as an expedient pushing-through of this, very possibly illegal, transaction?
sincerely, william silverman
Tuesday, February 3, 2009
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
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
THE CORRESPONDENCE CONTINUES!
Dear Mr. Silverman:
Thank you for writing to the Pennsylvania Insurance Department. Your e-mail was forwarded to the Bureau of Consumer Services for review and reply.
I will be mailing you a copy of our Department’s Decision and Order concerning this matter. The information provided in this document will answer many of your questions.
Our Department does monitor the financial condition of insurers transacting business in Pennsylvania by analyzing annual and quarterly financial statement filings and reviewing proposed financial transactions. Our Department also has examiners travel to insurance companies to review their financial condition and determine whether they are operating in compliance with Pennsylvania laws and regulations. If Senior Health Insurance Company of Pennsylvania (Formerly Conseco Senior Health) was declared insolvent, all policyholders would be informed of this event by our Department.
It appears by your mailing address you are a resident of Massachusetts. Most all states have insurance guarantee funds to provide protection to their residents if an insurance company becomes insolvent. If you are a resident of Massachusetts I recommend you contact the Commonwealth of Massachusetts, Division of Insurance at their consumer hotline: (617) 521-777 or their regular telephone number of (617) 521-7794 to receive information on the protection provided by the Massachusetts Insurance Guarantee Fund.
Roger Lisi | Harrisburg Regional Manager
Pennsylvania Insurance Department
Bureau of Consumer Services
1209 Strawberry Square | Harrisburg, PA 17120
Phone: 717.705.4395 | Fax: 717.787.8585
E-mail: rlisi@state.pa.us
www.insurance.state.pa.us | www.chipcoverspakids.com
Thank you for writing to the Pennsylvania Insurance Department. Your e-mail was forwarded to the Bureau of Consumer Services for review and reply.
I will be mailing you a copy of our Department’s Decision and Order concerning this matter. The information provided in this document will answer many of your questions.
Our Department does monitor the financial condition of insurers transacting business in Pennsylvania by analyzing annual and quarterly financial statement filings and reviewing proposed financial transactions. Our Department also has examiners travel to insurance companies to review their financial condition and determine whether they are operating in compliance with Pennsylvania laws and regulations. If Senior Health Insurance Company of Pennsylvania (Formerly Conseco Senior Health) was declared insolvent, all policyholders would be informed of this event by our Department.
It appears by your mailing address you are a resident of Massachusetts. Most all states have insurance guarantee funds to provide protection to their residents if an insurance company becomes insolvent. If you are a resident of Massachusetts I recommend you contact the Commonwealth of Massachusetts, Division of Insurance at their consumer hotline: (617) 521-777 or their regular telephone number of (617) 521-7794 to receive information on the protection provided by the Massachusetts Insurance Guarantee Fund.
Roger Lisi | Harrisburg Regional Manager
Pennsylvania Insurance Department
Bureau of Consumer Services
1209 Strawberry Square | Harrisburg, PA 17120
Phone: 717.705.4395 | Fax: 717.787.8585
E-mail: rlisi@state.pa.us
www.insurance.state.pa.us | www.chipcoverspakids.com
Monday, February 2, 2009
MY LETTER FOR TODAY!
FEBRUARY 2, 2009
ROBERT BRACKBILL
CHIEF, COMPANY LICENSING DIVISION
INSURANCE DEPARTMENT
1345 STRAWBERRY SQUARE
HARRISBURG, PA 17120
DEAR MR. BRACKBILL:
I AM A HOLDER OF A CONSECO LONG-TERM CARE INSURANCE POLICY.
I AM IN ASSISTED LIVING AND CURRENTLY ON BENEFIT.
.
WITH REGARD TO THE CURRENTLY OPERATING SENIOR HEALTH CARE TRUST OF PENNSYLVANIA, I HAVE SEVERAL QUESTIONS.
a. WHAT IS THE STATE INSURANCE DEPARTMENT'S CONTINGENCY PLAN IF THE TRUST BECOMES INSOLVENT?
b. IS THE INSURANCE DEPARTMENT MONITORING THE TRUST'S DECISIONS AND PERFORMANCE?
c. IS THERE A STATE OMBUDSMAN REPRESENTING POLICYHOLDER INTERESTS?
THESE QUESTIONS ARE IMPORTANT TO ME, AS I RECEIVE MONTHLY BENEFITS TO PAY MY RENT. I'M AWARE OF THE STATE GUARANTEE FUND, BUT IS IT SUFFICIENT TO COVER 171,000 LTC POLICIES? AND, IN THE EVENT OF INSOLVENCY, IS IT REALLY A GOOD FALLBACK POSITION?
WHY IS CONSECO ALLOWED TO WALK AWAY FROM THE LTC POLICIES IT INITIATED, WITH NO COURT REVIEW? HOW IS NOT INFORMING POLICYHOLDERS OF THE TRUST HOLDING THEIR POLICIES CONSIDERED AN ETHICAL DECISION IN SPITE OF STATE LAW NOT REQUIRING IT?
WHY WERE MY CONCERNS NOT ADDRESSED IN A PUBLIC MEETING PRIOR TO THE TRUST'S APPROVAL?
WHY WAS THE TRUST APPROVED WITHIN BARELY A MONTH'S TIME AFTER A FORMAL (FORM A) REQUEST WAS SUBMITTED BY CONSECO? WHY WAS THERE NO COURT REVIEW OF THE APPLICATION?
RESPECTFULLY AWAITING YOUR REPLY,
WILLIAM SILVERMAN
ROBERT BRACKBILL
CHIEF, COMPANY LICENSING DIVISION
INSURANCE DEPARTMENT
1345 STRAWBERRY SQUARE
HARRISBURG, PA 17120
DEAR MR. BRACKBILL:
I AM A HOLDER OF A CONSECO LONG-TERM CARE INSURANCE POLICY.
I AM IN ASSISTED LIVING AND CURRENTLY ON BENEFIT.
.
WITH REGARD TO THE CURRENTLY OPERATING SENIOR HEALTH CARE TRUST OF PENNSYLVANIA, I HAVE SEVERAL QUESTIONS.
a. WHAT IS THE STATE INSURANCE DEPARTMENT'S CONTINGENCY PLAN IF THE TRUST BECOMES INSOLVENT?
b. IS THE INSURANCE DEPARTMENT MONITORING THE TRUST'S DECISIONS AND PERFORMANCE?
c. IS THERE A STATE OMBUDSMAN REPRESENTING POLICYHOLDER INTERESTS?
THESE QUESTIONS ARE IMPORTANT TO ME, AS I RECEIVE MONTHLY BENEFITS TO PAY MY RENT. I'M AWARE OF THE STATE GUARANTEE FUND, BUT IS IT SUFFICIENT TO COVER 171,000 LTC POLICIES? AND, IN THE EVENT OF INSOLVENCY, IS IT REALLY A GOOD FALLBACK POSITION?
WHY IS CONSECO ALLOWED TO WALK AWAY FROM THE LTC POLICIES IT INITIATED, WITH NO COURT REVIEW? HOW IS NOT INFORMING POLICYHOLDERS OF THE TRUST HOLDING THEIR POLICIES CONSIDERED AN ETHICAL DECISION IN SPITE OF STATE LAW NOT REQUIRING IT?
WHY WERE MY CONCERNS NOT ADDRESSED IN A PUBLIC MEETING PRIOR TO THE TRUST'S APPROVAL?
WHY WAS THE TRUST APPROVED WITHIN BARELY A MONTH'S TIME AFTER A FORMAL (FORM A) REQUEST WAS SUBMITTED BY CONSECO? WHY WAS THERE NO COURT REVIEW OF THE APPLICATION?
RESPECTFULLY AWAITING YOUR REPLY,
WILLIAM SILVERMAN
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