On January 29, 2020, Senior Health Insurance Company of Pennsylvania ("SHIP") was placed in rehabilitation by the Commonwealth Court of Pennsylvania (the "Court") with the consent of SHIP’s board of directors and of the trustees of the Senior Health Care Oversight Trust, which owns SHIP. The Court appointed Pennsylvania Insurance Commissioner Jessica K. Altman (the "Commissioner") as Rehabilitator, and she has appointed Patrick H. Cantilo as Special Deputy Rehabilitator ("SDR").
Rehabilitation is a court supervised process intended to remedy the company’s financial deterioration for the benefit of policyholders and creditors.
On April 22, 2020, the Commissioner, as statutory Rehabilitator of SHIP, filed a proposed Plan of Rehabilitation ("Plan"), along with an application seeking Approval of the Plan and an application for the Approval of Form and Distribution of Notice. On June 12, 2020, the Court issued a Case Management Order establishing deadlines and procedures for Comments and a Hearing on the Proposed Plan of Rehabilitation and approved a form of notice of the filing of the application seeking Approval of the Plan. On October 21, 2020, the Commissioner, as statutory Rehabilitator of SHIP, filed a proposed Amended Rehabilitation Plan (“Amended Plan”).
Since filing the Rehabilitation Plan in April, SHIP has received, and is continuing to receive, many comments and suggestions about the Plan for SHIP’s rehabilitation. The Rehabilitation team has been continuing the analysis of the Plan and of these comments about the Plan. SHIP’s goal has been to amend the Plan to take the additional analysis and comments into account before the pre-hearing. As part of this process the Rehabilitator filed an Amended Plan. Among the changes to the proposed Amended Plan is a matter that will be material to certain holders of policies reinsured by SHIP.
SHIP currently reinsures and administers certain Transamerica Life Insurance Company (“Transamerica”), Primerica Life Insurance Company (“Primerica”), and American Health & Life Insurance Company (“American Health & Life”) long-term care insurance policies. The proposed Rehabilitation Plan filed in April 2020 contains language that indicates that reinsured policies were going to be treated the same as policies issued by SHIP. The Commissioner and SDR have since determined that the Amended Rehabilitation Plan should provide that all reinsured policies will be excluded from the provisions of the Plan dealing with SHIP’s policies. It is possible that SHIP, or its subsidiary Fuzion Analytics, Inc., will continue administering those policies under agreements with Transamerica, Primerica, and American Health & Life, which would not have a material effect on policyholders’ rights under the policies.
The details and consequences of this change are more fully described in the Changes to the Proposed Rehabilitation Plan for Reinsured Policies section of the Other Information page.
Portions of this website (the "Site") are provided as required by Rule 3779 of the Pennsylvania Rules of Appellate Procedure and the June 12, 2020, Case Management Order of the Court in the SHIP Rehabilitation Proceeding, Docket No. 1 SHP 2020 (the "Rehabilitation Proceeding"). Absent further Order of the Court, updates to this Site shall serve as official notice of filings, orders, deadlines, and hearings.