ALJDEC

01A-258-INS · Department of Insurance · 2001-12-13

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: December 12, 2001 APPEARANCES: John Hay, Esq. for Intermediary Life Insurance Company; Kurt Regner for the Arizona Department of Insurance ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________

On December 12, 2001, a hearing took place to consider the application of Intermediary Life Insurance Company (the "Petitioner"), to withdraw from the insurance business and for the release of its statutory deposit pursuant to A.R.S. §20-588 and A.A.C. R20-6-303. Based upon the entire record in this matter, the following Findings of Fact, Conclusions of Law and Recommended Order are made: FINDINGS OF FACT Petitioner has surrendered its certificate of authority to the Arizona Department of Insurance (“Department”). Petitioner has filed with the Department certified copies of Resolutions of the Petitioner's Board of Directors and of the Petitioner's shareholder(s) to withdraw from the insurance business, to amend its articles of incorporation to eliminate its insuring powers, and to adopt a new corporate name which shall not include the word "insurance". . . . . . . Petitioner has no insurance obligations owing to it, whether by policies written direct or by reinsurance ceded to it. Petitioner has filed its certified financial statement as of October 1, 2001, with the Department. At least ten business days before the hearing of this matter, Petitioner gave special notice to creditors and policyholders of the Petitioner, setting forth the date, place, nature and purpose of the hearing, as evidenced by an affidavit of publication. Petitioner also provided individual notice by mail to its known creditors, as evidenced by an affidavit. Petitioner has a $115,000.00 statutory deposit with the Department and a $100.00 deposit with the Insurance Examiners’ Revolving Fund (“IERF”). Petitioner waived the notice requirements set forth in A.R.S. §41- 1092.05(D). CONCLUSIONS OF LAW Petitioner has complied with the provisions of A.R.S. §20-588 and with A.A.C. R20-6-303, relating to the release of its $115,000.00 statutory deposit. RECOMMENDED ORDER Petitioner may file its Articles of Amendment to its Articles of Incorporation (“Articles of Amendment”) with the Arizona Corporation Commission. Petitioner is entitled to the release of its statutory deposit in the sum of $115,000.00 and Petitioner's statutory deposit shall be released to the Petitioner after the Department has received the following: (a) a copy of Petitioner’s Articles of Amendment certified as having been filed with the Arizona Corporation Commission; and (b) a fully executed Form E126 (Notice of Trust Deposit Release). The statutory deposit cannot be released until the Department receives a fully executed copy of the official State Treasurer Release Receipt Form E101. The sum of $100.00 previously credited to the IERF shall be refunded to the Petitioner, pursuant to A.R.S. §20-159. Petitioner shall file its 2001 Annual Statement with the Department, together with all applicable fees, unless Petitioner files its Articles of Amendment with the Arizona Corporation Commission on or before December 31, 2001. Petitioner shall pay to the Department its certificate of authority renewal fee if its Articles of Amendment are not filed with the Arizona Corporation Commission by March 31, 2002. Done this day, December 13, 2001.

______________________________________ Lewis D. Kowal Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2001, to:

Department of Insurance Charles R. Cohen 2910 North 44th Street, Ste. 210 Phoenix, AZ 85018

ATTN: Curvey Burton

By ___________________________

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Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826