S&P: Penn Treaty unaffected

Standard & Poor's said there is no effect on rating after the announcement by Penn Treaty American Corp. that its subsidiary, Penn Treaty Network America Insurance Co. (B/Watch negative), has entered into a revised voluntary consent agreement with the Florida Office of Insurance Regulation to recommence sales of its long-term care insurance products, effective immediately.

The agency said it believes that given Penn Treaty's current volume of new business in Florida, which constitutes about 6% of 2006 new applications, along with current lapse rates and premium volume in the state, the agreement allows the company to grow at a reasonable pace.

Under the terms of the agreement, the company will limit total Florida premium to current levels of about $48 million as of June 30, allowing for new business growth equal to lapses of existing policies.

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