ALJDEC decisions subject to certification as final

07A-215-INS · Department of Insurance · 2008-01-28

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: January 24, 2008 APPEARANCES: Nicholas Guttilla, Esq. for Twin Life Insurance Company; Kurt Regner for the Arizona Department of Insurance ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________ On January 24, 2008, a hearing took place to consider the application of Twin Life Insurance 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 filed its Affidavit of Lost 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 shareholders to withdraw from the insurance business, to amend its articles of incorporation to eliminate its insuring powers, and to adopt a new corporate name which shall not include the word "insurance". Petitioner has no insurance obligations, whether by policies written direct or by reinsurance ceded to it. Petitioner has filed with the Department a certified financial statement as of November 10, 2007, which is within 60 days of the application date of November 23, 2007.

At least ten 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 100,000.00 statutory deposit with the Department and a $100.00 deposit with the Insurance Examiners’ Revolving Fund (“IERF”). 6. Petitioner has submitted to the Department a fully executed Request for Release of Certificate of Deposit Form E126CD. 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 Petitioner may file its Articles of Amendment to its Articles of Incorporation (“Articles of Amendment”) with the Arizona Corporation Commission. Petitioner is entitled to the release of its statutory deposit in the sum of $100,000.00 and Petitioner's statutory deposit shall be released to Petitioner after the Department has received the following: (a) a copy of Petitioner’s Articles of Amendment certified as having been filed with the Arizona Corporation Commission; (b) an official State Treasurer Receipt Form E101; and (c) Petitioner’s 2007 Annual Statement and Annual Tax and Fees Report with the applicable filing fee. The Director of the Department has no personal liability for the release of such deposit made in good faith as provided for in A.R.S. § 20-588(B). The sum of $100.00 previously credited to the IERF shall be refunded to Petitioner pursuant to A.R.S. § 20-159. 4. Petitioner shall pay its 2008 Certificate of Authority renewal fee to the Department and file its 2007 Annual Form B, unless Petitioner’s Articles of Amendment is filed with the Arizona Corporation Commission on or before March 31, 2008. 5. Petitioner shall file its 2008 Annual Statement and Annual Tax and Fees Report with the Department, together with all applicable fees, unless Petitioner files its Articles of Amendment with the Arizona Corporation Commission on or before December 31, 2008. Done this day, January 28, 2008.

______________________________________ Lewis D. Kowal Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2008, 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