ALJDEC

98A-205-INS · Department of Insurance · 1998-12-23

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: December 23, 1998 APPEARANCES: Thomas E. Haney, Esq. For the Petitioner ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________ On December 23, 1998, a hearing was held to consider the Plan and Agreement of Merger whereby Planters Life Insurance Company (the "Insurer"), will merge into Magna Insurance Company (the "Petitioner"). Based upon the entire record in this matter, the following Findings of Fact, Conclusions of Law and Recommended Order are made: FINDINGS OF FACT 1. Insurer is duly qualified and authorized as an insurer in the State of Arizona. 2. Petitioner is duly qualified and authorized as an insurer in the State of Mississippi. 3. Both the Insurer and the Petitioner have waived notice requirements of A.R.S. §41-1092.05(D). 4. The shareholder(s) of the Insurer and the shareholder(s) of the Petitioner have waived notice of the hearing. 5. No evidence has been produced at the hearing of this matter that would indicate or form the basis for a finding that the Plan and Agreement of Merger previously filed with the Department: a. Is contrary to law.

b. Is unfair in the terms and conditions of the issuance and exchange of securities.

c. Would substantially reduce the security of and service to be rendered to policyholders of the Insurer in this State or elsewhere.

6. The Insurer has surrendered its certificate of authority to the Department. 7. Based upon the Department's review of Petitioner's filing, the Department recommended that the Director approve the Plan and Agreement of Merger filed in this matter. 8. Petitioner has also requested that the $100.00 deposit Insurer has with the Insurance Examiners’ Revolving Fund (“IERF”) be released to Insurer upon approval of the merger. 9. Petitioner has prepared Articles of Merger it intends to file with the Arizona Corporation Commission. CONCLUSIONS OF LAW The evidence of record established that Petitioner has complied with the provisions of A.R.S. §20-731 and established by credible evidence that the Plan and Agreement of Merger between the Insurer and Petitioner should be approved. RECOMMENDED ORDER The undersigned Administrative Law Judge recommends that: 1. The Petitioner may file its Articles of Merger with the Arizona Corporation Commission. 2. The Plan and Agreement of Merger between the Insurer and the Petitioner be approved . 3. The sum of $100.00 previously credited to the IERF be refunded to the Insurer pursuant to A.R.S. §20-159. 4. The Insurer shall file its 1998 Annual Statement with the Department, together with all applicable fees, unless the Insurer files its Articles of Merger with the Arizona Corporation Commission on or before December 31, 1998. Done this day, December 24, 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

ATTN: Curvey Burton

By _______________________________

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