Effective Today, Independent Trust Now Operating Former Conseco Senior Health Insurance Company Long-Term Care Insurance Business for the Sole Benefit of Policyholders
HARRISBURG, Pa., Nov. 12 /PRNewswire/ -- The Pennsylvania Insurance Department (the "Department") announced today that it has approved the separation, effective today, of Senior Health Insurance Company of Pennsylvania (formerly Conseco Senior Health Insurance Company) ("SHIP") from Conseco, Inc. As a result of the transaction, the long-term care business of SHIP will be managed by SHIP, subject to the oversight of the Senior Health Care Oversight Trust (the "Trust") and, for certain matters, the Department.
The Oversight Trust is to be governed by an independent Board of
Trustees composed of former insurance regulators and financial experts. The
Trust will also have as a member the former Surgeon General of the United
States, Dr. C. Everett Koop, who is an authority on health care issues
affecting seniors. The Trust will manage SHIP as a non-profit organization
the sole purpose of which is to satisfy the obligations of the insurance
coverages underwritten by SHIP. The Trust and SHIP will be subject to
oversight from the Department. In addition to Dr. Koop, the Board of
Trustees consists of:
-- Julianne M. Bowler, lead trustee and former Commissioner, Massachusetts
Department of Insurance
-- Gregory V. Serio, former Superintendent of Insurance, State of New York
-- Cecil D. Bykerk, former Chief Actuary, Mutual of Omaha and President,
Society of Actuaries
-- John W. Wells, President and Chief Executive Officer of SHIP
Management transferred from Conseco to SHIP includes John Wells, who will serve as the President and Chief Executive Officer of SHIP, and his senior management team for operations and finance.
On August 11, 2008, Conseco, Inc. announced its intention for an independent trust to be formed to own and operate CSHI. Under the terms of the completed transaction, all of the stock of CSHI has been transferred to the Trust, including its $121 million of total adjusted capital as of September 30, 2008, to which an additional $175 million has been received from Conseco.
Ms. Bowler commented on behalf of the Board of Trustees: "We view the establishment of Senior Health Care Oversight Trust as a novel and innovative means of helping to maintain the entire focus of SHIP on protecting the interests of policyholders. The entire board will single-mindedly pursue that important objective."
"This unique structure aligns the interests of the Trust, management and regulators with those of SHIP's 140,000 long-term care policyholders," said Mr. Wells. "SHIP is being operated for the benefit of CSHI's long-term care policyholders and without a profit motive, so as to ensure that any future benefits from rate increases or policy changes will accrue solely to policyholders."
For more information, please visit SHIP's web site at http://www.SHIPLTC.com.
Contacts Kekst and Company
Thomas Davies 212-521-4873
Roanne Kulakoff 212-521-4837
|SOURCE Senior Health Insurance Company of Pennsylvania|
Copyright©2008 PR Newswire.
All rights reserved