A lot of people made the wrong bet on long-term care and now they're paying dearly.

The Wall Street Journal reports two Pennsylvania insurers are failing due to long-term care claims they can't pay. Their actuarial calculations in past decades were fatally flawed on a number of fronts and now nearly 80,000 policyholders are left hoping for the best.

The two companies, both of which are divisions of Penn Treaty American Corp., have agreed after years of legal battles with state regulators to liquidate their $600 million of assets in the face of more than $4 billion of liabilities that they won't be able to pay.

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