ALJDEC decisions subject to certification as final

07A-207-INS · Department of Insurance · 2007-12-21

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: December 18, 2007 APPEARANCES: John Hay, Esq. for Transwestern Insurance Company; Kurt Regner for the Arizona Department of Insurance ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________ FINDINGS OF FACT 1. Petitioner has submitted an Affidavit of Lost Certificate of Authority to the Arizona Department of Insurance (“Department”). 2. Petitioner has filed with the Department certified copies of Resolutions of the Petitioner's Board of Directors and of Petitioner's shareholder authorizing Petitioner to withdraw from the insurance business by dissolution. 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 30, 2007, which is within 60 days of the Petition to Withdraw, which was filed with the Department on November 8, 2007. 5. 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. 6. Petitioner has a $100,000.00 statutory deposit with the Department and a $100.00 deposit with the Insurance Examiners’ Revolving Fund (“IERF”).

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. Petitioner may file its Articles of Dissolution with the Arizona Corporation Commission. 2. 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: a) a copy of Petitioner’s Articles of Dissolution certified as having been filed with the Arizona Corporation Commission; b) a fully executed Request for Release of Certificate of Deposit Form E126CD; and c) an Official State Treasurer Receipt Form E101. 3. The Director of the Department has no personal liability for the release of the statutory deposit made by her in good faith as provided in A.R.S. § 20-588(B). 4. The sum of $100.00 previously credited to the IERF shall be refunded to Petitioner pursuant to A.R.S. § 20-159. 5. 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. 6. 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 ___________________________

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