I just received a letter from Genworth that we have to pay a CA Penn Treaty Surcharge. The letter also says that payment or non-payment of the surcharge will not affect the status of my policy with Genworth. Also that it is not connected to any premium rate change. Am I forced to pay, and/or what can Genworth do if I don’t pay the surcharge of $47.10???? Is this something they can collect on?

Per Genworth’s home office, your policy won’t be affected if you don’t pay it. It is a surcharge that we’ve never seen before. The purpose is for a bailout of a failed company (Penn Treaty) which is headquartered in PA. The state of California passed a resolution that allows carriers to collect money from policyholders for this bailout fund when it typically comes just from the carrier. Genworth is the only company of which I am aware that is doing it.

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