Penn Treaty Surcharge for Active Long Term Care Policyholders Resident in California
Genworth Life Insurance Company (GLIC)and Genworth Life and Annuity Insurance Company (GLAIC) (GLIC and GLAIC, collectively Genworth) recently started mailing California Resident LTC policyholders seeking recoupment for assessments made against Genworth by the California Life and Health Insurance Guarantee Association (CLHIGA) for the 2017 Penn Treaty insolvency. CLHIGA assessed all companies writing health insurance in California to make up the shortfall needed to pay Penn Treaty claims caused by that insolvency. This assessment is not unique to Genworth, and Genworth has no affiliation with Penn Treaty.
California law permits the recoupment of assessments made by CLHIGA against member insurance companies for health insurance policies, like LTC. This law allows all companies to surcharge their health policies to recover these assessments. This surcharge is not a premium under California law, and the payment or non-payment of the surcharge will not affect the status of these policyholder’s Genworth LTC policies.
Genworth started sending these surcharge notices to active LTC policyholders who were California residents as of November 1, 2019.
These surcharge letters are accompanied by a Frequently Asked Questions document, which further explains the situation. We’ve included these FAQs in the following pages of this bulletin. Please contact Genworth’s Customer Service Team at 1-800-710-9978 if you have additional questions.
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