ALJDEC decisions subject to certification as final

06A-206-INS · Department of Insurance · 2006-12-08

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: November 30, 2006 APPEARANCES: Werner J. Meyer, Esq., appeared fro the Petitioner. Kurt Regner, Chief Financial Analyst, appeared for the Arizona Department of Insurance. ADMINISTRATIVE LAW JUDGE: Allen Reed _____________________________________________________________________ This matter came on for hearing on November 30, 2006, to consider the application of Irwin Union Credit Insurance Corp. (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 Order are made: FINDINGS OF FACT 1. The parties agreed and stipulated that except as otherwise stated in this Recommended Decision or on the record, all things which are required to be done, have been done in order for the Department to accept the Petitioner’s withdrawal from the insurance business and the release of the statutory bond. The following discussion addresses the main areas for withdrawal in this case but it is not is not necessarily a complete itemization of all things that have been done or remain to be done. 2. The Petitioner has reinsured or retroceded all its business in force. Copies of terminations of reinsurance agreements and /or bulk reinsurance agreements, between Petitioner and American United Life Insurance Company[1], and between Petitioner and American General Assurance Company[2] formerly known as US Life Credit Life Insurance Company were submitted as part of the record. 3. The Petitioner has filed with the Department certified copies of Resolutions of the Petitioner's Board of Directors and of Petitioner's sole shareholder authorizing Petitioner to liquidate and dissolve and take all necessary steps to withdraw from the insurance business in the State of Arizona. 4. The Petitioner has yet to file the Petitioner’s proposed Articles of Dissolution with the Arizona Corporation Commission. 5. The Petitioner has submitted its original Certificate of Insurance Authority. 6. The Petitioner does not owe the Department any amount and all financial report filing requirements have been satisfied and the company does not owe any fees or fines. 7. The Petitioner has filed its statement of financial condition as of September 30, 2006, which is within 60 days[3] of the Application to Withdraw having been filed with the Department. 8. Special notice to creditors of the hearing date, time, and place has been published and mailed at least 10 days prior to the hearing date. 9. The Petitioner has filed a Plan for Extinguishment of Liabilities. 10. The Petitioner has filed a list of creditors (GPW & Associates, Inc. and the Law Offices of Werner Meyer are assisting in withdrawal and dissolution) and the Internal Revenue Service and Department of Insurance. 11. The Petitioner has a $100,000.00 statutory deposit with the Department and a $100.00 deposit with the Insurance Examiners’ Revolving Fund. CONCLUSIONS OF LAW 1. 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. ORDER 1. The Petitioner may file its Articles of Dissolution with the Arizona Corporation Commission. 2. The 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 the Petitioner after the Department has received the following: (a) payment of examination expenses and/or computer fund and /or fraud assessments, if due; (b) a copy of its Articles of Dissolution certified as filed with the Arizona Corporation Commission; (c) a fully executed Request for Release of Certificate of Deposit Form E126CD and an Official State Treasurer Receipt Form E101. The Director has no personal liability for the release of such deposit so made by her in good faith as provided in A.R.S. §20-588(B) 3. The sum of $100.00 previously credited to the Insurance Examiners’ Revolving Fund shall be refunded to Petitioner pursuant to A.R.S. § 20-159. 5. The Petitioner shall file its 2006 Annual Statement with the Department, together with all applicable fees, unless Petitioner files its Articles of Dissolution with the Arizona Corporation Commission on or before December 31, 2006. 6. The Petitioner shall pay to the Department its Certificate of Authority renewal fee if Petitioner’s Articles of Dissolution are not stamped filed dated by the Arizona Corporation Commission on or before March 31, 2007.

Done this day, December 8, 2006

______________________________________ Allen Reed Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2006, to:

Christina Urias, Director Department of Insurance 2910 North 44th Street, Ste. 210 Phoenix, AZ 85018

By ___________________________

----------------------- [1] Signed Exhibit A [2] Unsigned Exhibit A, to be executed and submitted. [3] Notarized October 20, 2006.

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