ALJDEC

99A-121-INS · Department of Insurance · 1999-07-20

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: July 20, 1999 APPEARANCES: Philip T. Paris represented the Petitioner; Kurt Regner represented the Arizona Department of Insurance. ADMINISTRATIVE LAW JUDGE: Casey J. Newcomb _____________________________________________________________________ On July 20, 1999, a hearing was held to consider the application of Regan Reassurance 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 Decision are made:

FINDINGS OF FACT

1. The Petitioner has filed an Affidavit of Lost Certificate of Authority with 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, 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”.

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 with the Department. On or about May 7, 1999, the Petitioner submitted a certification to the Department from Lynda Regan, the Petitioner’s president, stating that there has been no material change in the Petitioner’s aforementioned financial statement.

5. At least 10 business days before the hearing in 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 $24.00 to the IERF as of July 15, 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 DECISION

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 the Petitioner’s Articles of Amendment certified as filed by 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.

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 1999 Annual Statement with the Department, together with all applicable fees, unless the Petitioner files its Articles of Amendment with the Arizona Corporation Commission on or before December 31, 1999.

Done this day, July 21, 1999.

______________________________________ Casey J. Newcomb Administrative Law Judge

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

Mr. Charles R. Cohen Department of Insurance ATTN: Curvey Burton 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