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                                                                    EXHIBIT 99.4

                        BEFORE THE INSURANCE COMMISSIONER
                                     OF THE
                          COMMONWEALTH OF PENNSYLVANIA


IN RE:                             :   CORRECTIVE ORDER
                                   :
PENN TREATY NETWORK AMERICA        :  Pursuant to Section 507-A of the Insurance
INSURANCE COMPANY                  :  Department Act of 1921, P.L. 789,
3440 Lehigh Street                 :  AS AMENDED, 40 P.S.ss.221.7-A.
                                      -- -------
Allentown, PA  18103               :
                                   :
AMERICAN NETWORK INSURANCE         :
COMPANY                            :
3440 Lehigh Street                 :
Allentown, PA  18103               :
                                   :
                                   :   Confidential Docket No. _____________


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                                CORRECTIVE ORDER
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                  AND NOW, this day of , pursuant to and in accordance with
Section 507-A of the Insurance Department Act of 1921, Act of May 17, 1921, P.L.
789, AS AMENDED, 40 P.S. ss.221.7-A, and in consideration of the documents,
presentations and reports received, as well as the examination and analysis of
the assets, liabilities and operations of Penn Treaty Network America
Corporation and its wholly owned subsidiary American Network Insurance Company
(collectively "Penn Treaty") performed by the Pennsylvania Insurance Department
and its consultant, the Insurance Commissioner of the Commonwealth
("Commissioner") hereby issues this Order:
         1. Penn Treaty is a domestic stock life insurance company, organized
pursuant to the laws of the Commonwealth of Pennsylvania, and has its statutory
home office located at 3440 Lehigh Street, Allentown, PA 18103.

         2. Penn Treaty is authorized to write lines of business under the
Insurance Company


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Law of 1921, Act of May 17, 1921, P.L. 682, AS AMENDED, Section 202(a)(1)) and
(a)(2), 40 P.S.ss.382(a)(1) and (a)(2).

         3. Penn Treaty is, and at all times has been, subject to examination by
and to the jurisdiction of the Department.

         4. Penn Treaty's December 31, 2000 statutory financial statements
indicated that its Risk-Based Capital had fallen below the "Regulatory Action
Level," as defined in Article V-A of the Insurance Department Act of 1921, AS
AMENDED, 40 P.S. ss.221.1A-221.15A, a Regulatory Action Level Event
under section 507-A of Article V-A, 40 P.S.ss.221.7-A.

         5. Section 507-A of Article V-A of the Insurance Department Act of
1921, 40 P.S.ss.221.7-A, requires the Commissioner to issue an order specifying
corrective actions to address a Regulatory Action Level Event.

 6. In determining appropriate corrective actions,
the Commissioner may take into account all relevant factors based upon the
Commissioner's examination or analysis of the assets, liabilities, and
operations of the insurer, including, but not limited to, the results of any
sensitivity tests undertaken pursuant to the RBC instructions.

         7. Upon the occurrence of the Regulatory Action Level Event, the
Commissioner, through the Department's Office of Regulation of Companies, took
the following actions under section 507-A:

               a.   required Penn Treaty to submit an RBC plan within 45 days of
                    the occurrence of the Regulatory Action Level Event;

               b.   reviewed Penn Treaty's RBC plan;

               c.   continued to negotiate with Penn Treaty and reviewed
                    subsequent amended RBC plans; and

               d.   performed an examination under Article IX of the Insurance
                    Department

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                    Act of 1921, 40 P.S.ss.323.1, ET SEQ. and an analysis of
                    Penn Treaty's assets, liabilities and operations.


         8. In its most recent amended RBC plan (the "corrective action plan"),
Penn Treaty proposed to adopt the initial level net premium reserve methodology
and to strengthen its contract and unearned premium reserves by approximately
$125 million by December 31, 2004. Penn Treaty also proposed as part of its
corrective action plan to enter into a reinsurance treaty with Centre Solutions
(Bermuda) Limited ("Centre") through which Penn Treaty would reinsure 100% of
its individual long term care insurance business in effect on December 31, 2001,
and a trust agreement among Centre, Penn Treaty and The Bank of New York. True
and correct copies of the corrective action plan, the draft reinsurance
agreement, and the draft trust agreement are attached as Exhibits A, B, and C,
respectively, and incorporated here by reference.

         9. Penn Treaty's corrective action plan satisfies the requirements of
section 507-A of Article V-A of the Insurance Department Act of 1921, 40
P.S.ss.221.7-A.

         NOW THEREFORE, upon consideration of the foregoing, including Penn
Treaty's corrective action plan, the draft reinsurance agreement, the draft
trust agreement and the examination and analysis performed by the Pennsylvania
Insurance Department and its consultant, the Commissioner hereby approves the
corrective action plan, including the draft reinsurance agreement and the trust
agreement, of Penn Treaty, subject to the following conditions:

         1. Penn Treaty shall comply with the terms of its approved corrective
action plan.

         2. Penn Treaty must file copies of the fully executed reinsurance
agreement, in the form of Exhibit B to this Order, and trust agreement, in the
form of Exhibit C to this Order, entered into by Penn Treaty pursuant to its
approved corrective action plan with the Department

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no later than ten (10) days after execution by all parties.


         3. Penn Treaty shall file with the Department a monthly statement of
the balance of the trust account required under paragraph 7(f) of the Trust
agreement among Centre, Penn Treaty and The Bank of New York within five (5)
days of receipt of any such statement.


         4. Penn Treaty shall file with the Department the analysis of the loss
ratio of the reinsurance business required by paragraph 1 of the Required
Premium Rate Increases section of the draft reinsurance agreement within five
(5) days of the completion of any such analysis.

         5. Penn Treaty shall compute its contract and unearned premium reserves
using the initial level net premium reserve methodology.

         6. Penn Treaty shall strengthen its contract and unearned premium
reserves by $125 million by December 31, 2004.

         7. Penn Treaty shall notify the Department within five (5) days of the
date of this Order of its licensing status in all jurisdictions in which it is
authorized to or writes insurance business and shall provide the Department with
copies of all formal/informal agreements or orders concerning its authority to
do business (including, but not limited to, its authority to issue new insurance
policies). Penn Treaty shall notify the Department of any change(s) in its
licensing status or authority to do business (including, but not limited to, its
authority to issue new insurance policies) within three (3) business days of the
occurrence of any such change(s).

         8. Penn Treaty shall submit to the Department all filings with the
Securities and Exchange Commission by its parent, Penn Treaty American
Corporation ("PTA"), and all press releases issued by Penn Treaty or PTA.

         9. Penn Treaty may make investments in fixed income securities rated 1
or 2 by the Securities Valuation Office of the NAIC without the prior written
approval of the Department.




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Any other investments to be made by Penn Treaty are subject to the prior written
approval of the Department. Such approval shall not be unreasonably withheld.
Nothing in this Order shall prevent Penn Treaty from purchasing up to $10
million in additional corporate owned life insurance per year without prior
Department approval.

         10. Penn Treaty shall not enter into any new reinsurance contract or
treaty, or amend, commute or terminate any existing reinsurance treaty without
the prior written approval of the Department. Such approval shall not be
unreasonably withheld.


         11. Penn Treaty shall make no new special deposits or make any changes
to its existing special deposits without the prior written approval of the
Department. Such approval shall not be unreasonably withheld.

         12. Penn Treaty shall not enter into any new agreements or amend any
existing agreements with its parent or affiliates in excess of $100,000 nor
shall it make any dividends or distributions to its parent or affiliates without
the prior written approval of the Department. Such approval shall not be
unreasonably withheld. This provision shall not affect any agreement or
arrangement currently in effect, nor shall it apply to any agreement or
arrangement with Penn Treaty's employees in effect currently or in effect in the
future.

         13. Penn Treaty shall notify the Department within five (5) days of
receiving notification of default on PTA debt requiring acceleration of
repayment.

         14. Penn Treaty shall make no change in its appointed actuary without
the prior written approval of the Department. Such approval shall not be
unreasonably withheld. Penn Treaty's current appointed actuary is Mark Littow of
Milliman USA, who will prepare the statement of actuarial opinion required to be
filed with Penn Treaty's annual financial statements.

         15. This Order supersedes and abrogates all previous agreements between
the



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Department and Penn Treaty.



                                               --------------------------------
                                                M. Diane Koken
                                                Insurance Commissioner
                                                Commonwealth of Pennsylvania



DATED:



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                                 CERTIFICATE OF SERVICE
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                  I hereby certify that I am this day serving the foregoing
document upon all parties of record in this proceeding in accordance with the
requirements of 1 Pa. Code Chapter 33 in the following manner:

                  SERVICE BY FAX AND FIRST-CLASS MAIL, ADDRESSED AS FOLLOWS:

                  Cameron B. Waite
                  Chief Financial Officer
                  Penn Treaty Network America
                    Insurance Company
                  3440 Lehigh Street
                  Allentown, Pennsylvania 18103

                  Justin P. Klein, Esquire
                  Ballard Spahr Andrews & Ingersoll, LLP
                  1735 Market Street, 51st Floor
                  Philadelphia, PA  19103-7599


                                         ---------------------------------
                                         AMY GRIFFITH DAUBERT
                                         Department Counsel
                                         I.D. # 62064
                                         Pennsylvania Insurance Department
                                         1341 Strawberry Square
                                         Harristown State Office Building No. 1
                                         Harrisburg, PA  17120
                                         (717) 787-2567

                                         Counsel for the Insurance Department,
                                         Commonwealth of Pennsylvania

DATED: