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ORDER TO CEASE AND DESIST <br />CASE NO. P-2005-67R <br />PAGE 4 <br />applications, the delivery of policies or contracts, the inspection of risks, the fixing of <br />rates, the investigation or adjustment of losses, the collection of premiums, or in any <br />other manner in the transaction of insurance with respect to subjects of insurance <br />resident, located, or to be performed in this state. Section 27-10-1(a), Code of Alabama <br />1975. Any person who does represent or aid Abba in violation of Section 27-10-1 shall, <br />in addition to any other applicable penalty, be liable for the full amount of any loss <br />sustained by the insured under any said contract and for the amount of any premium <br />taxes which may be payable pursuant to such contract. Section 27-10-2(a), Code of <br />Alabama 1975. <br />In addition, the Department has been unable to determine whether or not <br />American Preferred Underwriters Reinsurance Company, Ltd., is authorized to conduct <br />insurance business anywhere in the United States. It appears that said company may <br />be an unauthorized insurer as well. American Prefened has not only aided an <br />unauthorized insurer, spec~cally Abba, but it has held itself out as being authorized to <br />offer a financial pledge without having met the qualfications to do so pursuant to <br />Alabama laws and regulations. <br />It is imperative that an insurer meet the minimum financial qualifications to <br />conduct insurance transactions in Alabama. Otherwise, the public will have no <br />assurance that the company can support its monetary obligations made through the <br />issuance of insurance contracts. Not only is it unknown whether or not Abba is even a <br />solvent entity, ft is unknown whether American Preferred Underwriters Reinsurance <br />Company, Ltd. is more than a fictitious name. <br />As the public is at imminent risk of being banned by entering into contracts with <br />Abba, ft is hereby ORDERED that Abba shall immediately CEASE and DESIST from <br />engaging in any insurance transactions in this state or operating from offices in this <br />state in conducting insurance transactions, including the solicitation, negotiation, sale, <br />or effectuation of insurance contracts, the collection of premiums, or in any other <br />manner engaging in the business of insurance until having first applied and been <br />qualified to hold a cert~cate of authority in this state. In addition, all persons and <br />entities named above, and all other persons unknown at this time, shall CEASE and <br />DESIST from directly or indirectly acting as an agent for or otherwise representing or <br />aiding Abba in any transaction of insurance, until further order by the Commissioner. <br />Further, American Preferred Underwriters Reinsurance Company, Ltd., shall <br />CEASE and DESIST from offering any debentures or pledging any funds as guarantor <br />in any transactions related to insurance or insurers without having demonstrated to the <br />assurance of the Commissioner that It is qualified to conduct such transactions in this <br />state. Further, American Prefened Underwriters Reinsurance .Company, Ltd., is <br />ordered to submit within 15 days its most recent certified financial statement and <br />documentation as to the jurisdictions for which ii is qualified to conduct insurance <br />transactions. <br />