EXHIBIT 99.(a)(15)

         PENN TREATY SIGNS DISTRIBUTION PACT WITH MAJOR MARKETER OF LONG
       TERM CARE INSURANCE PRODUCTS; INTENDS TO ISSUE SUPPORTING CAPITAL

ALLENTOWN, PA, Oct. 14, 2002 - Penn Treaty American Corporation (NYSE - PTA)
today announced that it has entered into a distribution agreement with American
Insurance Marketing Corporation ("AIMC") of Atlanta, GA, pursuant to which AIMC
will immediately begin marketing Penn Treaty's long-term care ("LTC") insurance
products.

For over 25 years, AIMC has been one of the nation's leading sales agencies of
insurance products offered to senior citizens and has produced approximately $30
million in new long-term care policy sales in the past three years. Pursuant to
the agreement, AIMC has committed to produce at least $10 million in new sales
for Penn Treaty's subsidiary, American Network Insurance Company, within the
next 12 months.

In addition, Penn Treaty and AIMC have agreed to develop unique new long-term
care insurance products that will be offered for sale by AIMC's 8,000 insurance
agents and Penn Treaty's additional 45,000 member force. The new product line is
intended to incorporate innovative features and benefits that are considered by
AIMC's sales force to be lacking in the current long-term care market.

"We are very excited to engage in this venture with one of the nation's premier
sales leaders for senior insurance products," stated William W. Hunt, President
and Chief Operating Officer of PTA. Mr. Hunt further added, "together we plan to
bring new innovation to the long-term care insurance marketplace."

Michael White, President of AIMC, commented on the new venture, "with access to
an exceptional portfolio of products and significant underwriting expertise,
AIMC looks forward to more deeply penetrating the long-term care insurance
market."

In order to support anticipated levels of sales resulting from the new
distribution pact as well as from the reengagement of its current agency force,
and to remain in compliance with the Consent Order entered with the Florida
Insurance Department earlier this year allowing it to recommence operations in
that state, Penn Treaty intends to raise approximately $20 million in additional
capital between now and year-end. Accordingly, the company is presently engaged
in transactional discussions with its financial advisor and investment bankers.

Separately, Penn Treaty also announced that it has been advised that entities
controlled by New York investor Wilbur Ross purchased $10 million face amount of
the Company's 2003 Notes from an existing noteholder yesterday and intend to
tender them into Penn Treaty's currently outstanding Exchange Offer. To further
induce this and additional exchanges of the Notes, Penn Treaty agreed to reduce
the conversion price of the new 2008 Notes from $5.31 per share to $4.50 per
share. This reduction in the conversion price will apply to all of the new 2008
Notes, including those to be issued in exchange for 2003 Notes already tendered
and not withdrawn. Due to the change in the terms of the 2008 Notes, the
Exchange Offer, which was to have expired at midnight on October 10, has been
extended for five business days. If the Ross entities were to exercise their
conversion rights, they would hold approximately 6.0% of the Company's currently
outstanding shares (assuming no exercise of outstanding options or warrants).

Penn Treaty, through its wholly owned direct and indirect subsidiaries, Penn
Treaty Network America Insurance Company, American Network Insurance Company,
American Independent Network Insurance Company of New York, Penn Treaty
(Bermuda), Ltd., United Insurance Group Agency, Inc., Network Insurance Senior
Health Division and Senior Financial Consultants Company, is primarily engaged
in the underwriting, marketing and sale of individual and group accident and
health insurance products, principally covering long-term nursing home and home
health care.

Certain statements made by the Company in this press release may be considered
forward - looking within the meaning of the Private Securities Litigation Reform
Act of 1995. Although the Company believes that



its expectations are based upon reasonable assumptions within the bounds of its
knowledge of its business and operations, there can be no assurance that actual
results the Company's operations will not differ materially from its
expectations. Factors which could cause actual results to differ from
expectations include, among others, the Company's ability to comply with the
Corrective Action Plan, the Florida Consent Order, which includes, among others,
a requirement to comply with Florida gross premium to surplus ratios, for which
the Company is required to raise additional equity capital of approximately $20
million prior to year end and which, if the Company is unsuccessful could lead
to the suspension of the Company's insurance license, the orders or directives
of other states in which the Company does business or any special provisions
imposed by states in connection with the resumption of writing business, the
Company's ability to eventually commute its reinsurance agreement and to
recapture its reinsured polices and accumulated experience account balance,
whether its Corrective Action Plan will be accepted and approved by all states,
the Company's ability to meet its future risk-based capital goals, the adverse
financial impact of suspending new business sales, the Company's ability to
raise adequate capital to meet regulatory requirements and to support
anticipated growth, the Company's ability to consummate the pending Note
Exchange Offer, the cost associated with recommencing new business sales,
liquidity needs and debt obligations, the adequacy of the Company's loss
reserves and the recoverability of its unamortized deferred policy acquisition
cost asset, the Company's ability to sell insurance products in certain states,
the Company's ability to resume generating new business in all states, the
Company's ability to comply with government regulations and the requirements
which may be imposed by state regulators as a result of the Company's capital
and surplus levels, the ability of senior citizens to purchase the Company's
products in light of the increasing costs of health care, the ability of the
Company to defend itself against adverse litigation, and the Company's ability
to recapture, expand and retain its network of productive independent agents,
especially in light of the suspension of new business. For additional
information, please refer to the Company's reports filed with the Securities and
Exchange Commission.