ALJDEC

99A-024-INS · Department of Insurance · 1999-03-25

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 25, 1999 APPEARANCES: Attorney Werner J. Meyer represented the Petitioner; Kurt Regner appeared on behalf of the Arizona Department of Insurance. ADMINISTRATIVE LAW JUDGE: Casey J. Newcomb _____________________________________________________________________ On March 25, 1999, a hearing was held to consider the application of Independent Bankers Life Insurance Company of Indiana (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

1. The Petitioner has surrendered its Certificate of Authority to the Arizona Department of Insurance (“Department”).

2. The Petitioner has filed with the Department certified copies of the Resolutions of the Petitioner's Board of Directors and of the Petitioner's shareholder(s) authorizing the Petitioner to withdraw from the insurance business in the State of Arizona by amending its Articles of Incorporation and adopting a new name.

3. The Petitioner has no insurance obligations owing to it, whether by policies written directly or by reinsurance ceded to it.

4. The Petitioner has filed its certified financial statement as of December 31, 1998 and January 1, 1999 with the Department.

5. At least 10 business days before the hearing of this matter, the 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. The Petitioner also provided individual notice by mail to its known creditors, as evidenced by an affidavit.

6. The Petitioner has a $100,000.00 statutory deposit with the Department and a $100.00 deposit with the Insurance Examiners’ Revolving Fund (“IERF”).

7. The Petitioner owes $140.76 to the IERF as of March 23, 1999.

8. The Petitioner waived the notice requirements set forth in A.R.S. §41- 1092.05(D).

CONCLUSIONS OF LAW

1. 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

1. The Petitioner may file its Articles of Amendment with the Arizona Corporation Commission.

2. The Petitioner is entitled to the release of its statutory deposit in the sum of $100,000.00 and that the statutory deposit shall be released to the Petitioner after the Department has received the following: (a) payment of examination expenses, and/or computer fund and/or fraud assessments, if due; (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 Receipt Form E101.

3. The sum of $100.00 previously credited to the IERF shall be refunded to the Petitioner, pursuant to A.R.S. §20-159.

4. The Petitioner shall file its 1998 Annual Statement with the Department, together with all applicable fees.

5. The Petitioner shall pay its Certificate of Authority renewal fee if the Articles of Amendment are not filed with the Arizona Corporation Commission on or prior to March 31, 1999.

6. The Petitioner shall file its 1999 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, 1999.

Done this day, March 25, 1999.

______________________________________ Casey J. Newcomb Administrative Law Judge

Original transmitted by mail this ____ day of March, 1999, to:

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

By _______________________________

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

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