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ORDER TO CEASE AND DESIST <br />CASE NO. P-2005-67R <br />PAGE 3 <br />13. The Department has found no information regarding the location or financial <br />condition of American Preferred Underwriters Reinsurance Company, Ltd. Said entity is <br />not authorfzed to conduct insurance business in the state of Alabama and has made no <br />filings as an alien insurance company as required under Alabama regulations. <br />14. None of the individuals or entities named above are licensed as resident or <br />non-resident producers in the state of Alabama. <br />15. Abba Bonding, Inc., is not authorized in the state of Alabama to engage in <br />the business of surety insurance. <br />16. An immediate Cease and Desist Order is necessary due to the imminent <br />danger of cftizens in Alabama and elsewhere being harmed by the unauthorized and <br />illegal surety insurance contrects being offered by Abba and its agents. <br />ANALYSIS AND LAW <br />It is prohibited for any person to act as an insurer or to Transact insurance in this <br />state without being authorized by a certificate of authority issued by the Commissioner <br />of Insurance. Section 27-3-1, Code of Alabama 1975. Such insurance transactions <br />include the business of surety insurance for which the insurer must meet certain <br />qualifications including minimum amounts of capital and surplus. Section 27-3-7, Code <br />of Alabama 1975. Nor may an insurer operate from offices located in this state and <br />solicit insurance applications or transact insurance in another state unless qualified for <br />such business by the Alabama Commissioner of Insurance. Section 27-3-1(b), Code of <br />Alabama 1975. Abba has neither applied for a cert~cate of authority nor attempted to <br />demonstrate that ft is qualified to conduct the business of insurance in this state. As <br />such, it is in violation not only of the above cited statutes, but is further in violation of <br />every insurance law and regulation which is applicable to insurance companies who <br />conduct surety insurance transactions in this state. <br />It is prohibited for any person to sell, solicit, or negotiate insurance unless said <br />person is licensed for that line of authority in accordance with Alabama law. Section 27- <br />7-4(a), Code of Alabama 1975. None of the named individuals atwve who are apparent <br />agents for Abba have been qual~ed or hold an Alabama resident or non-resident <br />producer license. <br />As Abba has not been qualified to conduct surety insurance transactions in this <br />state, it is operating as an unauthorized insurer. As such, the above-named individuals <br />and entities associated with Abba are prohibited from directy or indirectly acting as an <br />agent for, or otherwise representing or aiding on behalf of another, Abba in the <br />solicitation, negotiation or effectuation of insurance contracts, the forwarding of <br />