Filed Pursuant to 424B5
                                                      Registration No. 333-50016


          Prospectus Supplement (to Prospectus Dated November 15, 2000)


                        PENN TREATY AMERICAN CORPORATION
                             SHARES OF COMMON STOCK


     We are offering to certain of our insurance agents the opportunity to be
standby purchasers of our shares of common stock which are currently being
offered to holders of our common stock and of our 6 1/4% convertible
subordinated notes due 2003 in a rights offering described in a prospectus
supplement dated April 25, 2001. The purchase price for each share will be
$2.40. We are seeking gross proceeds of $28,999,200 in the rights offering and
it expires on May 25, 2001. We may extend the expiration date, modify the terms
of the offering or cancel the rights offering by press release at any time. If
we cancel the rights offering, we also intend to cancel this offering to standby
purchasers.

     Following the expiration date of the rights offering, if the total proceeds
from the exercise of rights equals the gross proceeds we are seeking, then no
sales will be made in this offering. However, if we have not received the gross
proceeds we are seeking from exercise of rights, then we will accept your
subscription to purchase common stock at $2.40 per share up to the gross
proceeds we are seeking. In addition, if the aggregate proceeds from the
exercise of rights and the subscriptions from this offering exceeds the gross
proceeds, then the subscriptions in this offering will be prorated.

     Our common stock is listed for trading on the New York Stock Exchange under
the symbol "PTA".

Investing in our common stock involves significant risks that are described in
the "Risk Factors" section beginning on page S-7 of the prospectus supplement
dated April 25, 2001.

     Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if this
prospectus supplement, the prospectus supplement dated April 25, 2001 or the
accompanying prospectus dated November 15, 2000 is truthful or complete. Any
representation to the contrary is a criminal offense.

     The shares will be ready for delivery on or about May 31, 2001.

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             THE DATE OF THIS PROSPECTUS SUPPLEMENT IS MAY 7, 2001.