ALJDEC

98A-192-INS · Department of Insurance · 1998-12-09

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: December 15, 1998. Record reopened on December 16, 1998 for submission of additional evidence. Record closed on December 16, 1998. APPEARANCES: Philip T. Paris, Esq. on behalf of the Petitioner ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________

On December 15, 1998, a hearing took place to consider the application of Memorial 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 The Petitioner has surrendered its certificate of authority to 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 September 30, 1998, 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 listed the United States Internal Revenue Service (“I.R.S.”) as a creditor in its Plan of Extinguishment of Liabilities. However, upon this tribunals’ granting of Petitioner’s request to reopen the record of this matter, the Petitioner presented documentary evidence into the record (Exhibit G) that prior to the hearing of this matter, the I.R.S. was paid and is no longer a creditor of the Petitioner. The Petitioner has a $100,00.00 statutory deposit with the Department and a $100.00 deposit with the Insurance Examiners’ Revolving Fund (“IERF”). Petitioner currently owes $356.59to the IERF. Petitioner waived the notice requirements set forth in A.R.S §41-1092.05(D) CONCLUSIONS OF LAW 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 $100,000.00 statutory deposit. RECOMMENDED ORDER 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 $100,000.00 and Petitioner's statutory deposit shall be released to the Petitioner after the Department has received the following: (a) payment of $356.59to the IERF; (b) a copy of Petitioner’s Articles of Amendment certified as having been filed with the Arizona Corporation Commission; and (c) a fully executed Form E126 (Notice of Trust Deposit Release). The statutory deposit cannot be released until the Department receives a fully executed copy of the official State Treasurer Release Receipt Form E101. 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 file its 1998 Annual Statement 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, 1998. Done this day, December 16, 1998.

_________________________________ Lewis D. Kowal Administrative Law Judge

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

Mr. Charles R. Cohen, Director Department of Insurance 2910 North 44th Street, Ste. 210 Phoenix, AZ 85018

Attention: Curvey Burton

By _______________________________

-----------------------

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