IN RE PENN TREATY NETWORK AMERICA INS. CO.

No. 94 MAP 2012, No. 95 MAP 2012

119 A.3d 313 (2015)

In re PENN TREATY NETWORK AMERICA INSURANCE COMPANY in Rehabilitation. Appeal of Teresa D. Miller, Insurance Commissioner of the Commonwealth of Pennsylvania. In re American Network Insurance Company in Rehabilitation. Appeal of Teresa D. Miller, Insurance Commissioner of the Commonwealth of Pennsylvania.

Supreme Court of Pennsylvania.

Decided July 20, 2015.


Attorney(s) appearing for the Case

Ryan Clark Blazure, Esq. , Thomas, Thomas & Hafer, L.L.P., Wilkes-Barre, for Jerome Lawrence.

Douglas Y. Christian, Esq. , Benjamin Moshe Schmidt, Esq. , Damian L. DiNicola, Esq. , Philadelphia, Ballard Spahr Andrews & Ingersoll, L.L.P., for Penn Treaty American Corporation and Eugene J. Woznicki.

Constance B. Foster, Esq. , Harrisburg, James Steven Gkonos, Esq. , Paul M. Hummer, Esq. , Saul Ewing, LLP, Philadelphia, for Affinion Group, American Insurance Planners, Apex Financial Group, Inc., Association Member Benefits, Barbara Quaife-Hopkins, Century Senior Services, Cornerstone Senior Services, LLC, Dean L. Wilde Agency, Inc., 5 Star Companies LLC, G.A. Legg & Associates, Irving Levit Insurance Management Corp., Jim Sines Insurance Agency, Inc., Lawrence J. Ochs, Lehmann Wood Johnson, Inc., Lehmann/Wood & Associates, Inc., Linda Gardner, Linda Sanvall, Long Term Care Advisors, Long Term Care Associates, Inc., Long Term Care Consultants, Long Term Care LLC, LTC Financial Partners, LLC, M&O Marketing, Inc., Mario J. Posteraro, Mark David Cohn, Marion J. Reitmeyer, Mark Heller Insurance Services, Mature Health Services, Medical Insurers Association of VA, Inc., National Coverage Agency, Premier Senior Marketing, LLC, Randall Hargett, Richard E. Rosen, Steven Moskowitz, TWG Capital Inc., Western Asset Protection, Wolf and Associates, Inc., American Life and Health, William E. Laufbahn Agency, Inc., General Agency Development Services, Mayfield Financial & Estate Protection Services, Martel Agency, M.J. Kahn & Associates, Inc., James Gottfurcht.

Michael R. Kelley, Esq. , Harrisburg, Charles Thomas Young Jr., Esq. , York, McNees, Wallace & Nurick, LLC, for National Health Administrators, Inc.

Barry E. Harris, Pro Se.

Carl Merritt Buchholz, Esq. , Carl H. Poedtke III, Esq. , Jayne Y. Risk, Esq. , DLA Piper US, LLP, Philadelphia, Preston M. Buckman, Esq. , Amy Griffith Daubert, Esq. , Laura Ann Gargiulo, Esq. , PA Department of Insurance, James Reeves Potts, Esq. , Cozen & O'Connor, Philadelphia, for Michael F. Consedine.

Gerald E. Arth, Esq. , Fox Rothschild, LLP, Philadelphia, for National Association of Insurance Commissioners.

Mark David Bradshaw, Esq. , Stevens & Lee, P.C., Harrisburg, for Pa. Life & Health Ins. Guaranty Assoc. and the Nat'l Org. of Life & Health Ins. Guaranty Assoc.

Ira Scott Bergman, Esq. , for Penn Treaty Network America Insurance Company in 94 MAP 2012.

Ira Scott Bergman, Esq. , for American Network Insurance Company in 95 MAP 2012.

David L. Harbaugh, Esq. , Morgan Lewis & Bockius, L.L.P., Philadelphia, for Independence Blue Cross.

Vera Sue McAnulty, Esq. , Welch, Gold & Siegel, P.C., for Brian Allen.

Abbott & Associates, Pro Se.

John E. Adcox, Pro Se.

Dennis Adler, Pro Se.

W. Wayne Allen, Pro Se.

American Benefit Concepts, Pro Se.

American Diversified Insurance Services, Pro Se.

AmeriLife & Health Services of Asheville, LLC, etc., Pro Se.

Rene Apack, Pro Se.

Mahmoud Attari, Pro Se.

James R. Baker, Pro Se.

Dave Barnes Sr., Pro Se.

Donald Barnes, Pro Se.

Basic Financial Solutions, Pro Se.

Alex Berkowitz, Pro Se.

Mark Berlin, Pro Se.

Stanley Block, Pro Se.

Jay P. Bogen, Pro Se.

Vincent J. Bono, Pro Se.

John A. Booth, Pro Se.

Cheryl Bosley, Pro Se.

James Bosley, Pro Se.

Mark Boudreaux, Pro Se.

Bradley Associates Insurance Services, Inc., Pro Se.

Carl E. Breitenstein, Pro Se.

James M. Brinda, Pro Se.

Robert E. Brown, Pro Se.

Louis Brownstone, Pro Se.

Rebecca J. Brumbaugh, Pro Se.

Burgess & Associates, Pro Se.

Paul H. Burns, Pro Se.

Don H. Campbell, Pro Se.

Lisa Capierseho, Pro Se.

Charles Roy Carney, Pro Se.

Central Insurance Agency Inc., Pro Se.

Lynn Champagne, Pro Se.

Betty B. Christopher, Pro Se.

Michael R. Clark, Pro Se.

Daryl Cohen, Pro Se.

Thomas C. Cole, Pro Se.

Ronald Coleman, Pro Se.

James L. Collins, Pro Se.

Dorothy W. Connell, Pro Se.

Thomas E. Conrey, Pro Se.

Robert B. Coursault, Pro Se.

Patricia R. Courtney, Pro Se.

William O. Daggett Jr., Pro Se.

James Davis, Pro Se.

Sheri DiBello, Pro Se.

Lillian DiLaurenzo, Pro Se.

James M. DuBrueler Jr., Pro Se.

William E. Ebert, Pro Se.

Mike Ebrahimoon, Pro Se.

Martin Eigen, Pro Se.

Charles M. Ellers, Pro Se.

Phyllis Ellis, Pro Se.

Dave Ermlick, Pro Se.

Sheila Ermscher, Pro Se.

Greg Estes, Pro Se.

Samuel Thomas Farmer, Pro Se.

Martin J. Feldsher, Pro Se.

Larry E. Fordham Sr., Pro Se.

Donna Forman, Pro Se.

Stephen D. Forman, Pro Se.

Barbara Fried, Pro Se.

Michael I. Frye, Pro Se.

Lisa Fuhrman, Pro Se.

Robert C. Ginther, Pro Se.

Howard Gnatowsky, Pro Se.

Larry Goldberg, Pro Se.

Marci Golden, Pro Se.

Glenn M. Goldman, Pro Se.

David Gottschalk, Pro Se.

Helaine Gottschalk, Pro Se.

Mark Graber, Pro Se.

Gloria J. Green, Pro Se.

Richard G. Green, Pro Se.

Davig G. Greenhut, Pro Se.

Robin L. Grimm, Pro Se.

Paul E. Gronefeld, Pro Se.

Robert W. Haines, Pro Se.

Gerald W. Hall, Pro Se.

Diana Hammons, Pro Se.

Barbara Haselden, Pro Se.

Paul D. Hauser, Pro Se.

David W. Hayter, Pro Se.

Carl Mark Heller, Pro Se.

Janet L. Henning, Pro Se.

Charles D. Hicks, Pro Se.

Steven N. Hollaway, Pro Se.

William E. House, Pro Se.

Mary Hughes, Pro Se.

Patricia Hyder, Pro Se.

Insurance Marketing, Inc., Pro Se.

Insurance Services Administration Company, LLC, Pro Se.

Intercoastal Insurance Services, Inc., Pro Se.

Robert Isenhower, Pro Se.

Michael Jackson, Pro Se.

Ronald J. Jacobson, Pro Se.

Elizabeth R. Jacquemetton, Pro Se.

Lynda Jacquot-Imberi, Pro Se.

Marion E. Jirovsky, Pro Se.

Catherine L. Jones, Pro Se.

John F. Jones, Jr., Pro Se.

Michael J. Jones, Pro Se.

Rodney L. Jones, Pro Se.

William R. Kaczmarek, Pro Se.

Robert A. Kaldenberg, Pro Se.

George Karmazyn, Pro Se.

Ray Kastl, Pro Se.

Blaine Keller, Pro Se.

Richard L. Kimmel, Pro Se.

Phillip A. Kirk, Pro Se.

David Kitaen, Pro Se.

Richard L. Kobermusz, Pro Se.

Dennis A. Koch, Pro Se.

Irene Krinsky, Pro Se.

Sue A. Lamar, Pro Se.

Frank T. Lamartine, Pro Se.

Jim Lapinski, Pro Se.

James R. Lee, Pro Se.

Don C. Lekvold, Pro Se.

Dennis Lentin, Pro Se.

Dolores Lentin, Pro Se.

Donna Trenary Leonard, Pro Se.

F. Bert Lerch, Pro Se.

Faith H. Light, Pro Se.

Long Term Care Senior Health Division, LLC, Pro Se.

LTC Insurance Services, Inc., Pro Se.

Norman Lyon, Pro Se.

Stacy MacDonald, Pro Se.

William T. MacKinnon, Pro Se.

Charles L. Magee, Pro Se.

Harvey Mann, Pro Se.

Gary Marso, Pro Se.

Patrick T. Maude Jr., Pro Se.

Sean G. McErlean, Pro Se.

Daniel McGettigan, Pro Se.

Gary L. McGlothlin, Pro Se.

Brent McNabb, Pro Se.

Dolores A. McNamara, Pro Se.

James C. McNamara, Pro Se.

Medigap, LLC, Pro Se.

Joe Medina, Pro Se.

Kenneth A. Meller, Pro Se.

Allen Mergaman, Pro Se.

Larry Mikolajcik, Pro Se.

Jim Miller, Pro Se.

Ronald T. Miller, Pro Se.

Donald Minkus, Pro Se.

Perry Morin, Pro Se.

Rosalie Morthole, Pro Se.

National Insurance Network, Inc., Pro Se.

Network Insurance Senior Health Division, LLC, Pro Se.

Northwest Farmer Stockman, Inc., Pro Se.

NW Senior Resources, Pro Se.

Allen Ohnheiser, Pro Se.

Lynn O. Olson, Pro Se.

Dave Ostrem Jr., Pro Se.

Larry D. Oswald, Pro Se.

Kenneth H. Overcash, Pro Se.

Donald L. Paulus, Pro Se.

Steven L. Pelly, Pro Se.

Stephen C. Perry, Pro Se.

C. Don Petersen Sr., Pro Se.

Roy Petty, Pro Se.

Paulette A. Pevsner, Pro Se.

Ronald E. Pevsner, Pro Se.

Jerrold R. Pfingsten, Pro Se.

Philadelphia Area Long Term Care Guild, Pro Se.

Ken Phillips, Pro Se.

Bartholomew B. Piccardo, Pro Se.

Professional Insurance Planners and Consultants, Pro Se.

Kerry Psinas, Pro Se.

Jeffrey E. Raelson, Pro Se.

Sheldon L. Ray, Pro Se.

Gary H. Reaves, Pro Se.

Gary Repper, Pro Se.

Alvin A. Rexing, Pro Se.

Paul M. Riddle, Pro Se.

Gerald D. Rieker, Pro Se.

Robert C. Roark, Pro Se.

Philip L. Robbins, Pro Se.

Michael M. Robinson, Pro Se.

Norm Rons, Pro Se.

Mel Rose, Pro Se.

Sonya Rubin, Pro Se.

R. Runestad, Pro Se.

Randy Sabers, Pro Se.

Nicholas Salerno, Jr., Pro Se.

Sarasota Health and Financial Services, Inc., Pro Se.

Michael Satterfield, Pro Se.

Ryan A. Saul, Pro Se.

Alan Gregory Sayo, Pro Se.

Steve Scarbrough, Pro Se.

Ross Schriftman, Pro Se.

Gary Scism, Pro Se.

Senior Help Associates, Inc., Pro Se.

Shirley Shaw, Pro Se.

Helen C. Shupe, Pro Se.

John R. Shupe, Pro Se.

Harry Fletcher Smith, Jr., Pro Se.

Thomas H. Smith, Pro Se.

Maurice P. Solie Jr., Pro Se.

Tom Soucy, Pro Se.

Patricia L. Spencer, Pro Se.

Mark E. Stanley, Pro Se.

Deborah Stas, Pro Se.

Laura Stensrud, Pro Se.

Cindy Stillwell, Pro Se.

Susanna Stock, Pro Se.

Charlotte Stonestreet, Pro Se.

Ronnie L. Stonestreet, Pro Se.

Ken Story, Pro Se.

Ken Stotmeister, Pro Se.

Benjamin E. Sumner, Pro Se.

Matt Sussman, Pro Se.

Jamie Swanbom, Pro Se.

Michael F. Taylor, Pro Se.

Sonny Thapar, Pro Se.

The LTC Exchange, Ltd., Pro Se.

G.D. Toole, Pro Se.

Samuel L. Torrez, Pro Se.

Curtis E. Vahle, Pro Se.

Americe Vavak, Pro Se.

Rhonda Vry-Bills, Pro Se.

Mary Wagman, Pro Se.

Carl L. Walbert, Pro Se.

Marie Wallace, Pro Se.

James W. Waltes Jr., Pro Se.

Martha L. Warren, Pro Se.

Dennis Waton, Pro Se.

West Florida Life and Health, Pro Se.

Western Asset Protection, Inc., Pro Se.

Kenneth Wheeler, Pro Se.

Mike Wheeler, Pro Se.

Thomas R. Whiston, Pro Se.

David B. Wientjes, Pro Se.

Dean L. Wilde, Pro Se.

David M. Wilkins, Pro Se.

Richard Williams, Pro Se.

Tony Winkelman, Pro Se.

Mark R. Wolfe, Pro Se.

Phyllis Lee Young, Pro Se.

Leonard Zanello, Pro Se.

Gretchen Zomermaand, Pro Se.

CASTILLE, C.J., SAYLOR, EAKIN, BAER, TODD, McCAFFERY, STEVENS, JJ.


OPINION

This appeal concerns the efforts, over time, of three different Insurance Commissioners, acting in their capacity as statutory rehabilitators, to convert insurance rehabilitation proceedings into liquidations.

Penn Treaty Network America Insurance Company ("PTNA") and its subsidiary, American Network Insurance...

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