STATE OF VERMONT
DEPARTMENT OF FINANCIAL REGULATION
IN RE: SENIOR HEALTH INSURANCE COMPANY OF PENNSYLVANIA
DOCKET NO. 22-005-I
EX PARTE ORDER TO CEASE & DESIST
Senior Health Insurance Company of Pennsylvania – Long Term Care
On March 4, 2022, through counsel, the DFR Insurance Division submitted a Motion for Ex Parte Cease & Desist Order alleging that Senior Health Insurance Company of Pennsylvania (SHIP) is transacting insurance business in this State in a manner that is causing or is reasonably expected to cause significant, imminent, and irreparable injury to Vermont policyholders. See Motion attached hereto. I have reviewed the alleged violations specified in the Motion, which are incorporated herein by reference, and find, based on the allegations, that good cause exists for me to issue the requested Ex Parte Cease and Desist Order.
CEASE AND DESIST ORDER
This order is issued pursuant to 8 V.S.A. §§ 11, 12, 15, 3661(a), 8809, and DFR-2022-01 § 1.04(O). I believe that SHIP is violating Vermont law and regulations as described in the DFR Insurance Division’s March 4, 2022 Motion for Ex Parte Cease & Desist Order.
Effective immediately, except as expressly provided herein, SHIP and its principals, employees, and agents (including the Rehabilitator and its deputies and agents) shall halt disseminating, implementing, or enforcing in this State the “Coverage Election Package” or otherwise interfering with the rights of SHIP's Vermont policyholders or violating the insurance laws and regulations of this State, including, but not limited to, notifying Vermont policyholders of proposed rate or benefit modifications under SHIP policies or requesting that Vermont policyholders select rates or benefits different under SHIP policies from those authorized by the Vermont DFR and called for under the terms of the contract, charging additional premium, or withholding, delaying, or encumbering benefits in whole or in part, until such time as otherwise ordered by the Vermont DFR.
This Order does not prohibit SHIP from filing a premium increase request, or a proposed schedule of rates for proposed voluntary policy modifications, for review by the Commissioner in the manner prescribed by Vermont law, with sufficient supporting information to enable the Commissioner to determine whether the requested rates are neither inadequate, excessive, nor unfairly discriminatory. This Order does not prohibit SHIP from sending notices of any such filings to consumers if the notices have been reviewed by the Commissioner for accuracy and compliance with Vermont law and have not been disapproved.
NOTICE OF RIGHT TO HEARING
SHIP is hereby given NOTICE that a hearing will be afforded in this matter if they so request in accordance with Department of Financial Regulation Administration Procedures No. 2022-01 § 1.04(O) within thirty (30) days from the date of the mailing of this Notice. Any such request must be delivered to the attention of the Docket Clerk, Beth Sides, 89 Main Street, Montpelier, Vermont 05620-3101.
The Department of Financial Regulation is located at 89 Main Street, City Center, 3d Floor, Montpelier, Vermont. If a hearing is requested, one will be scheduled within thirty (30) days after the Department’s receipt of such a request.
Such hearing in this matter will be conducted in accordance with the contested case procedures prescribed in 3 V.S.A. § 809 and Department of Financial Regulation Administrative Procedures Rule No. 2022-01. All parties have the right to represent themselves or to be represented throughout the proceedings by legal counsel.
FAILURE TO REQUEST A HEARING IN A TIMELY MANNER OR TO ATTEND A HEARING THAT HAS BEEN SCHEDULED MAY RESULT IN THE ENTRY OF A DEFAULT JUDGMENT AGAINST YOU FOR THE RELIEF REQUESTED BY THE DEPARTMENT.
BY ORDER OF THE COMMISSIONER OF FINANCIAL REGULATION
Dated at Montpelier, Vermont this ______ day of March, 2022.
Michael S. Pieciak
Commissioner of Financial Regulation
Vermont Department of Financial Regulation