ALJDEC

02A-027-INS · Department of Insurance · 2002-03-22

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 21, 2001 APPEARANCES: Philip T. Paris Esq. for the Petitioner; Kurt Regner for the Arizona Department of Insurance ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________

On March 21, 2002, a hearing took place to consider the application of American Specialty Health Reinsurance Company ( "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) authorizing Petitioner to withdraw from the insurance business by dissolution. 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 November 30, 2001,with the Department. Petitioner represented that it has no creditors in the State of Arizona and has no remaining obligations or liabilities in the State of Arizona. The Petitioner has a $100,000.00 statutory deposit with the Department and a $100.00 deposit with the Insurance Examiners’ Revolving Fund (“IERF”). Petitioner waived 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 $100,000.00 statutory deposit.

RECOMMENDED ORDER Petitioner may file its Articles of Dissolution with the Arizona Corporation Commission. Petitioner is entitled to the release of its statutory deposit in the sum of $100,000.00 and the statutory deposit shall be released to Petitioner after the Department has received the following: (a) a copy of Petitioner’s Articles of Dissolution 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 Petitioner, pursuant to A.R.S. §20-159. Petitioner shall file its 2001 Annual Statement with the Department, together with all applicable fees. Petitioner shall pay its certificate of authority renewal fee to the Department . . . . . . unless Petitioner files its Articles of Dissolution with the Arizona Corporation Commission on or before March 31, 2002. Done this day, March 21, 2002.

______________________________________ Lewis D. Kowal Administrative Law Judge

Original transmitted by fax/mail this ____ day of ____________, 2002, to:

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

By ___________________________

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