ALJDEC decisions subject to certification as final

07A-206-INS · Department of Insurance · 2007-12-21

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: December 18, 2007 APPEARANCES: Lenin Arthanari, Esq. for Red Shield Surplus Insurance Co.; Kurt Regner for the Arizona Department of Insurance ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________

FINDINGS OF FACT On December 18, 2007, a hearing took place to consider the application of Red Shield Surplus Insurance Co. ("Petitioner") to withdraw from the insurance business. Based upon the entire record in this matter, the following Findings of Fact, Conclusions of Law and Order are made: FINDINGS OF FACT 1. Petitioner has submitted its Certificate of Authority to the Arizona Department of Insurance (“Department”). 2. Petitioner has filed with the Department its original Resolutions of the Petitioner's Board of Directors and of Petitioner's shareholder authorizing Petitioner to withdraw from the insurance business by dissolution.[1] 3. Petitioner has no insurance obligations, whether by policies written direct or by reinsurance ceded to it. 4. Petitioner has filed its verified financial statement as of September 13, 2007, which is within 60 days of the Application to Withdraw, which was filed with the Department on October 31, 2007. 5. Petitioner did not provide individual notice by mail to its creditors because Petitioner represented that it had no known creditors. 6. Petitioner has a $560,809.00 statutory deposit with the Department and a $100.00 deposit with the Insurance Examiners’ Revolving Fund (“IERF”). 7. Petitioner represented that it was not at this time proceeding with its request for the return of its statutory deposit and IERF deposit and indicated that it will address them at a later date with the Department. CONCLUSIONS OF LAW 1. Petitioner has complied with the provisions of A.A.C. R20- 6-303, relating to the withdrawal from the transaction of insurance business in the State of Arizona. ORDER 1. Petitioner may file its Articles of Dissolution with the Arizona Corporation Commission. 2. Petitioner shall file its 2007 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, 2007. 3. Petitioner shall pay to the Department its 2008 certificate of authority renewal fee if Petitioner’s Articles of Dissolution are not filed with the Arizona Corporation Commission on or before March 31, 2008. Done this day, December 21, 2007.

______________________________________ Lewis D. Kowal Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2007, to:

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

By ___________________________

----------------------- [1] It is determined that the submission of the original documents satisfies the requirement set forth in A.A.C. R20-6-203 that certified copies of such resolutions be filed with the Department.

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