ALJDEC

98A-026-INS · Department of Insurance · 1998-03-24

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 20, 1998 APPEARANCES: Kevin G. Hunter, Esq. for the Petitioner ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________

On March 20,1998, a hearing took place, to consider the application of Nanseekay 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 AND CONCLUSIONS OF LAW The Petitioner has filed an Affidavit of Lost Certificate of Authority with the Arizona Department of Insurance (“Department”). The Petitioner has filed with the Department certified copies of Resolutions of the Petitioner's Board of Directors and of the Petitioner's shareholder(s) 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". The Petitioner has no insurance obligations owing to it, whether by policies written direct or by reinsurance ceded to it. The Petitioner has filed its certified financial statement as of December 31, 1997, with the Department. 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 represented that it has no creditors in the State of Arizona other than its sole shareholder who received notice of this proceeding and has no remaining obligations or liabilities in the State of Arizona. The Petitioner has a $125,000.00 statutory deposit with the Department and a $100.00 deposit with the Insurance Examiners’ Revolving Fund (“IERF”). 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 $125,000.00 statutory deposit. Petitioner has requested and the Department did not object to an exemption pursuant to A.R.S. §20-481.17 from the filing of "Form B" registration statements for the years ending December, 1995 and December, 1996. RECOMMENDED ORDER The undersigned Administrative Law Judge recommends that: Petitioner is granted an exemption pursuant to A.R.S. §20-481.17 from the filing of "Form B" registration statements for the years ending December, 1995 and December, 1996. The Petitioner may file its Articles of Amendment to its Articles of Incorporation (“Articles of Amendment”) with the Arizona Corporation Commission. The Petitioner is entitled to the release of its statutory deposit in the sum of $125,000.00 and Petitioner's statutory deposit shall be released to the 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) a fully executed Form E126 (Notice of Trust Deposit Release); (c) Balance sheets for the Petitioner for the years ending December 31, 1995 and December 31, 1996 prepared and certified by the Trustee for Thomas Warmus (the “Trustee”) as being based upon the best information and records available; (d) Annual Tax and Fees Report Form E-1668 for calendar years 1995 and 1996 signed by the Trustee; Remittance of annual fees due for calendar years 1995,1996 and 1997, which total $7,425.00; and (e) Certificate of Disclosure Form E-178 notarized by the Trustee for calendar years 1995 and 1996, containing information regarding the bankruptcy petition pertaining to Petitioner. The sum of $100.00 previously credited to the IERF shall be refunded to the Petitioner, pursuant to A.R.S. §20-159. The Petitioner shall pay its certificate of authority renewal fee, file an Annual Tax and Fees Report Form E-168, and file a Certificate of Disclosure Form E- 178 if Petitioner’s Articles of Amendment are not filed with the Arizona Corporation on or before March 31, 1998. Done this day, March 24, 1998.

_______________________________ LEWIS D. KOWAL Administrative Law Judge

Original transmitted by mail this ____ day of March, 1998, to:

Mr. John A. Greene, Director Department of Insurance ATTN: Curvey Burton 2910 North 44th Street, #210 Phoenix, AZ 85018-7256

By _______________________________

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Office of Administrative Hearings 1700 West Washington, Suite 602 Phoenix, Arizona 85007 (602) 542-9826