Other Rehabilitation Information
The information below provides supplemental documents and details on the rehabilitation of Senior Health Insurance Company of Pennsylvania (“SHIP”).
February 3, 2020
CHANGES TO THE PROPOSED REHABILITATION PLAN FOR REINSURED POLICIES
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 “reinsured policies”). The proposed Rehabilitation Plan filed in April 2020 contains language that indicates that the 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 the 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.
If the Court approves SHIP’s request that the reinsured policies be excluded from the provisions of the Plan dealing with SHIP’s policies, key consequences include:
1. Transamerica, Primerica, and American Health & Life policies (the reinsured policies) will NOT be modified under the Plan and these policyholders will not be asked (or have the ability) to make elections under the Plan.
2. SHIP will not be financially responsible for claims arising under these policies and will not have the right to treat these policy premiums as assets of SHIP.
3. If SHIP is placed in liquidation, the terms of these policies will remain unchanged and these policyholders will not receive benefits from any life and health insurance guaranty association. In that case, Transamerica, Primerica, and American Health & Life will remain fully responsible for these policies and any claims covered by these policies.
4. It is possible that Transamerica, Primerica, and American Health & Life will seek regulatory approval for future premium rate increases on these policies.
The deadline for Formal Comments was September 15, 2020 and interested parties have the right to submit comments about the proposed Rehabilitation Plan, including this proposed change which would affect the reinsured policies. A court order was issued on October 27, 2020 providing any party that filed a Formal Comment the opportunity to amend their Comment no later than November 30, 2020. The procedures for providing Informal or Formal Plan comments in support of or in objection to the proposed Rehabilitation Plan can be found on the Court Documents page of this Site in the June 12, 2020 Case Management Order for Comments and Hearing on the Proposed Plan of Rehabilitation.
CLAIMS AGAINST SHIP IN REHABILITATION
At this time, no special procedure has been implemented for the filing of claims against SHIP. Those who believe they are owed money by SHIP should continue submitting invoices in the ordinary course of business. It is possible that in the future more specific procedures and deadlines will be adopted governing objections to claims decisions by SHIP’s Rehabilitator. If that happens, the Pennsylvania Rules of Appellate Procedure provide the following requirements for participation in such a process in the Commonwealth Court of Pennsylvania:
Rule 3781(c)(4) Corporate representation
If the claimant is an entity other than a natural person, an attorney admitted to practice in Pennsylvania must enter an appearance for the claimant within sixty (60) days of the filing of the objection, or the Court may dismiss the objection.
Rule 3781(c)(5) Pro hac vice admission
If a claimant wishes to be represented by an attorney not admitted to practice in Pennsylvania, that attorney must be admitted to practice pro hac vice, in accordance with Pa. R.C.P. No. 1012.1, Pa. B.A.R. 301, and 204 Pa. Code § 81.505, within sixty (60) days of the filing of the objection, or the Court may dismiss the objection.