ALJDEC (decisions subject to certification as fin)

02A-193-INS · Department of Insurance · 2002-12-17

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: December 17, 2002 APPEARANCES: Philip T. Paris, Esq. for First Security Life Insurance Company; Kurt Regner for the Arizona Department of Insurance ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________

On December 17, 2002, a hearing took place to consider the application of First Security 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 filed its certificate of authority with 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, whether by policies written direct or by reinsurance ceded to it. . . . . . . Petitioner has filed its certified financial statement as of September 30, 2002, with the Department. At least 10 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 $500,000.00 statutory deposit with the Department Petitioner represented that it is not pursuing the return of a $100.00 Insurance Examiners’ Revolving Fund (“IERF”) deposit and will address that issue with the Department outside of the instant hearing. Petitioner waived the notice requirements set forth in A.R.S. §41- 1092.05(D). CONCLUSIONS OF LAW The 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 $500,000.00 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 $500,000.00 and the statutory deposit shall be released to the 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. Petitioner shall file its 2002 Annual Statement with the Department, together with all applicable fees, unless Petitioner files its Article of Dissolution with the Arizona Corporation Commission on or before December 31, 2002.

Petitioner shall pay its certificate of authority renewal fee to the Department if Petitioner’s Articles of Dissolution are not filed with the Arizona Corporation Commission by March 31, 2003.

Done this day, December 17, 2002.

______________________________________ Lewis D. Kowal Administrative Law Judge

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

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

By ___________________________

-----------------------

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