Penn Treaty American Announces New Sales Initiative and Processing Agreement
With Universal American
ALLENTOWN, Pa., March 25 /PRNewswire-FirstCall/ -- Penn Treaty American
Corporation today announced that it has entered a sales initiative and
processing agreement ("the Agreement") with subsidiaries of Universal American
Financial Corp. of Rye Brook, New York.
Under the terms of the Agreement, the career agents of Universal American
Financial Corp.'s insurance subsidiaries, Pennsylvania Life and Pyramid Life,
will offer Penn Treaty's long-term care and home health care insurance products. The Penn Treaty portfolio of products offered will include benefit periods in
excess of three years (which are not offered by the Universal American Financial
companies), and Penn Treaty's Secured Risk Plan, a long-term care policy that is
designed for individuals with substandard health conditions.
In addition, Penn Treaty expects to develop a new sales initiative by offering
Medicare Supplement insurance products in at least 30 states through its
national distribution team of independent agents. The sale of Medicare
Supplement insurance products will provide additional diversity to Penn Treaty's
long-term care insurance products, further broadeningits senior market
portfolio. Introduction of Penn Treaty's new Medicare Supplement insurance
product line is expected to be in the early third quarter of 2004.
Under the Agreement, Penn Treaty will utilize Universal American's third party
administrative services company, CHCS Services Inc, to provide policy
administration, commissions and claims services for the new Medicare Supplement
policies. CHCS Services, Inc. is a seasoned administrator with in excess of
$500 million of Medicare Supplement premium under management.
William W. Hunt, Penn Treaty President and CEO, said, "This is a great business
opportunity that allows each company to capitalize on its own set of core
competencies. For Penn Treaty, another valuable distributor of our long-term
care insurance products is established. This will help us achieve our long-term
care insurance growth goals, while giving Universal American's career agents
access to the broadest underwriting window in the industry." Mr. Hunt continued, "Entering the Medicare Supplement business helps achieve our
goal of revenue and profit diversification with a product family that is
complementary to long-term care insurance. I am very confident that the
Medicare Supplement insurance product line will createsignificant value not
only by clearing our financial hurdles, but also by facilitating the recruitment
of new field marketing organizations." Patrick D. Patterson, Executive VP and Chief Marketing Officer added, "Our
agreement with Universal American's subsidiaries will establish a stronger sales
platform for both organizations, resulting in improved agent recruiting,
retention and increased sales. We look forward to working together to
accomplish these common objectives." William Wehner, President of Pennsylvania Life said, "We are looking forward to
making available the Penn Treaty extended benefit and substandard long-term care
products to our career agents. These added plans would give our agents a
complete portfolio of long term care products to offer to our valued clients".
Gary Jacobs, "President of CHCS said, "We are pleased that Penn Treaty chose us
as their administrator of choice for their new Medicare Supplement Plans. We
are committed to providing all Penn Treaty agents with the best Medicare
Supplement service in the market today." Penn Treaty, through its wholly owned direct and indirect subsidiaries, Penn
Treaty Network America Insurance Company, American Network Insurance Company,
American Independent Network Insurance Company of New York, United Insurance
Group Agency, Inc., Network Insurance Senior Health Division and Senior
Financial Consultants Company, is primarily engaged in the underwriting,
marketing and sales of individual and group accident and health insurance
products, principally covering long-term nursing home and home health care. The
Company's website is http://www.penntreaty.com/.
Universal American Financial Corp. offers a portfolio of supplemental life and
health insurance products, primarily to the senior market, as well as third
party administrator services for insurance and non-insurance programs in the
senior market. The Company is included in the Russell 2000 and 3000 Indexes.
For more information on Universal American, please visit http://www.uafc.com/.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding Penn Treaty American Corporation's
and Universal American Financial Corp.'s business that are not historical facts
are "forward-looking statements" that involve risks and uncertainties. For a
discussion of such risks and uncertainties, which could cause actual results to
differ from those contained in the forward-looking statements, see "Risk
Factors" in the Company's Annual Report or Form 10-K for the most recently ended
fiscal year. DATASOURCE: Penn Treaty American Corporation CONTACT: Cameron Waite, Executive VP and CFO of Penn Treaty American Corporation, 1-800-222-3469, ; or Robert A. Waegelein, Executive VP & CFO of Universal American Financial Corp., +1-914-934-8820 Web site: http:/// http://www.penntreaty.com/ http://www.uafc.com/
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