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Tony Ondrusek is founder and publisher of Insurance & Financial Advisor and IFAwebnews.com.

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In what would be the largest liquidation of a U.S. insurance company in more than half a decade, Pennsylvania’s insurance commissioner is seeking to dissolve long-troubled Penn Treaty, according to IFAwebnews.com.

Rumors about the demise of Penn Treaty had swirled about for a while, long before the company was forced into rehabilitation earlier this year.

It’s a shame that a company that has been around for more than 35 years should fail, but it grew too quickly with too little oversight and guidance during a time when long-term care insurance was making a big name for itself. The story of Penn Treaty’s demise (chronicled nicely in a California lawyer’s blog posting) is a lesson for others.