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Florida Laws: FL Statutes - Title XXXVII Chapter 631 Insurer Insolvency; Guaranty of Payment
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Florida Laws > Insurance > Florida Laws: FL Statutes - Title XXXVII Chapter 631 Insurer Insolvency; Guaranty of Payment
Part I - Insurer Insolvency: Rehabilitation and Liquidation
(ss. 631.001-631.399)
- §631.001 Title, construction, and purpose.
(1) This part constitutes and may be cited as the "Insurers Rehabilitation and Liquidation Act." (2) This part shall be liberally construed to effect the purposes of...
- §631.011 Definitions.
For the purpose of this part, the term: (1) "Affiliate" means any entity which exercises control over or is controlled by the insurer, directly or indirectly...
- §631.015 Reciprocity; treatment of policyholders.
Reciprocity in the treatment of policyholders in receivership is extended to those states which, in substance and effect, enact the National Association of Insurance Commissioners...
- §631.021 Jurisdiction of delinquency proceeding; venue; change of venue; exclusiveness of remedy; appeal.
(1) The circuit court shall have original jurisdiction of any delinquency proceeding under this chapter, and any court with jurisdiction is authorized to make all necessary...
- §631.025 Persons subject to this part.
Delinquency proceedings authorized by this part may be initiated against any insurer, as defined in s. 631.011(15), if the statutory grounds are present as to...
- §631.031 Initiation and commencement of delinquency proceeding.
(1) Upon a determination by the office that one or more grounds for the initiation of delinquency proceedings exist pursuant to this chapter and that delinquency...
- §631.041 Automatic stay; relief from stay; injunctions.
(1) An application or petition under s. 631.031 operates as a matter of law as an automatic stay applicable to all persons and entities, other than...
- §631.042 Extension of time.
(1) With respect to any action by or against an insurer, no statute of limitations or defense of laches shall run between the date the department...
- §631.051 Grounds for rehabilitation; domestic insurers.
The department may petition for an order directing it to rehabilitate a domestic insurer or an alien insurer domiciled in this state on any one...
- §631.0515 Appointment of receiver; insurance holding company.
A delinquency proceeding pursuant to this chapter constitutes the sole and exclusive method of dissolving, liquidating, rehabilitating, reorganizing, conserving, or appointing a receiver of a...
- §631.061 Grounds for liquidation.
The department may apply to the court for an order appointing it as receiver (if its appointment as receiver is not then in effect) and...
- §631.071 Grounds for conservation; foreign insurers.
The department may apply to the court for an order appointing it as receiver or ancillary receiver, and directing it to conserve the assets within...
- §631.081 Grounds for conservation; alien insurers.
The department may apply to the court for an order appointing it as receiver or ancillary receiver, and directing it to conserve the assets within...
- §631.091 Grounds for ancillary liquidation; foreign insurers.
The department may apply to the circuit court for an order appointing it as ancillary receiver of, and directing it to liquidate the business and...
- §631.101 Order of rehabilitation; termination.
(1) An order to rehabilitate a domestic insurer shall direct the department forthwith to take possession of the property of the insurer and to conduct the...
- §631.111 Order of liquidation; domestic insurers.
(1) An order to liquidate the business of a domestic insurer shall direct the department forthwith to take immediate possession of the property of the insurer,...
- §631.112 Subordination of claims for noncooperation.
If an ancillary receiver or another person performing the duties associated with an ancillary receiver in another state or foreign country fails to transfer to...
- §631.121 Order of liquidation; alien insurers.
An order to liquidate the business of a United States branch of an alien insurer having trusteed assets in this state shall be in the...
- §631.131 Order of conservation or ancillary liquidation of foreign or alien insurers.
(1) An order to conserve the assets of a foreign or alien insurer shall require the department forthwith to take possession of the property of the...
- §631.141 Conduct of delinquency proceeding; domestic and alien insurers.
(1) Whenever under this chapter a receiver is to be appointed in a delinquency proceeding for a domestic or alien insurer, the court shall appoint the...
- §631.152 Conduct of delinquency proceeding; foreign insurers.
(1) Whenever under this chapter an ancillary receiver is to be appointed in a delinquency proceeding for an insurer not domiciled in this state, the court...
- §631.153 Intervention; exclusiveness of claims procedure.
No person shall be allowed to intervene in any delinquency proceeding in this state brought under this chapter for the purpose of seeking or obtaining...
- §631.154 Funds, assets, or other property in the possession of third person.
(1) If the receiver determines that funds, assets, or property in the possession of another person are rightfully the property of the estate, the receiver shall...
- §631.155 Agents' balances; premiums and unearned commissions.
Premiums and unearned commissions which have been collected on behalf of an insurer by an agent, agency, or other entity or person constitute an asset...
- §631.156 Investigation by the department; scope of authority; sharing of materials.
(1) The department may, under the direction and supervision of the receivership court, conduct an investigation to determine the causes of the insolvency, including whether false...
- §631.157 Civil action by the receiver.
(1) Any person who is engaged in the business of insurance, is or acts as an officer, director, agent, or employee of any person engaged in...
- §631.161 Claims of nonresidents against insurers domiciled in this state.
(1) In a liquidation proceeding begun in this state against an insurer domiciled in this state, claimants residing in foreign countries or in states which are...
- §631.171 Claims of residents against insurers domiciled in reciprocal states.
(1) In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, if a notice to file claims has been issued by...
- §631.181 Filing and proof of claim.
(1)(a) Proof of a claim shall be filed with the receiver in the form required by subsection (2) on or before the last day for filing...
- §631.182 Receiver claims report and claimants objections procedure.
(1) As soon as it has evaluated claims filed in the delinquency proceeding, the receiver shall report the claims to the circuit court, specifying in the...
- §631.191 Special deposit claims and secured claims.
(1) The owners of special deposit claims against an insurer against which a liquidation order has been entered in this or any other state shall be...
- §631.192 Allowance of certain claims.
(1) No claim based upon a contract of insurance, suretyship, or indemnity may be allowed or paid from the assets of an insurer in process of...
- §631.193 Releases.
The filing of a claim constitutes a release of the insured from liability to the claimant to the extent of the coverage or policy limits...
- §631.201 Attachment and garnishment of assets.
During the pendency of a delinquency proceeding in this or any reciprocal state, no action or proceeding in the nature of an attachment, garnishment, or...
- §631.205 Reinsurance proceeds.
All reinsurance proceeds payable under a contract of reinsurance to which the insolvent insurer is a party are to be paid directly to the domiciliary...
- §631.206 Arbitration.
If an insurer in receivership has entered into an agreement containing an arbitration provision for resolution of disputes, that provision is void and shall be...
- §631.221 Deposit of moneys collected.
The moneys collected by the department in a proceeding under this chapter shall be deposited in a qualified public depository as defined in s. 280.02,...
- §631.231 Exemption from fees.
The department or office shall not be required to pay any fee to any public officer in this state for filing, recording, issuing a transcript...
- §631.241 Borrowing on pledge of assets.
For the purpose of facilitating the rehabilitation, liquidation, conservation, or dissolution of an insurer pursuant to this chapter, the department may, subject to the approval...
- §631.251 Date rights fixed on liquidation.
Except as provided in ss. 631.192 and 631.252, the rights and liabilities of the insurer and its creditors, policyholders, stockholders, members, and subscribers and all...
- §631.252 Continuation of coverage.
(1) All insurance policies or similar contracts of coverage, other than coverages defined in s. 631.713 or health maintenance organization coverage under part IV, issued by...
- §631.261 Voidable transfers.
(1)(a) Any transfer of, or lien upon, the property of an insurer or affiliate which is made or created within 4 months prior to the commencement...
- §631.262 Transfers prior to petition.
(1) Every transfer made or suffered and every obligation incurred by an insurer or affiliate within 1 year prior to the filing of a successful petition...
- §631.263 Transfers after petition.
(1) After the original petition is filed in any delinquency proceeding, a transfer of any of the real property of the insurer made to a person...
- §631.271 Priority of claims.
(1) The priority of distribution of claims from the insurer's estate shall be in accordance with the order in which each class of claims is set...
- §631.281 Offsets.
(1) In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter,...
- §631.311 Report and petition for assessment.
Within 3 years after the date of the entry of an order of rehabilitation or liquidation of a domestic mutual insurer or a domestic reciprocal...
- §631.321 Order and levy of assessment.
(1) Upon the filing and reading of the report and petition provided for in s. 631.311, the court, ex parte, may order the department to assess...
- §631.331 Assessment prima facie correct; notice; payment; proceeding to collect.
(1) Any assessment of a subscriber or member of an insurer made by the department pursuant to the order of court fixing the aggregate amount of...
- §631.341 Notice of insolvency to policyholders by insurer, general agent, or agent.
(1) The receiver shall, immediately after appointment in any delinquency proceeding against an insurer in which the policies have been canceled, give written notice of such...
- §631.361 Seizure under court order.
(1) Upon filing by the department in the circuit court in and for Leon County of its verified petition alleging any ground for a formal delinquency...
- §631.371 Seizure under order of the department.
(1) Upon the department filing a verified petition with any circuit judge of the proper judicial circuit as required by s. 631.021(2), which states that it...
- §631.391 Cooperation of officers and employees.
(1) Any officer, director, manager, trustee, agent, adjuster, employee, or independent contractor of any insurer or affiliate and any other person who possesses any executive authority...
- §631.3915 Actions for damages.
The department, in its capacity as administrator, receiver, or similar capacity, may pursue any actions for damages or other recoveries on behalf of the insurer's...
- §631.392 Immunity.
There shall be no liability on the part of, and no cause of action of any nature shall arise against, the Chief Financial Officer, the...
- §631.395 Guaranty fund; orders of court.
Any order of liquidation issued pursuant to s. 631.111 or s. 631.131 shall authorize and direct the department as receiver to coordinate the operation of...
- §631.397 Use of certain marshaled assets.
(1) Within 120 days of a final determination of insolvency of an insurer by a court of competent jurisdiction of this state, the department, as receiver,...
- §631.398 Prevention of insolvencies.
To aid in the detection and prevention of insurer insolvencies or impairments: (1) Any member insurer; agent, employee, or member of the board of directors; or...
- §631.399 Receiver's right to recover distributions made to affiliate.
(1) If an order for liquidation or rehabilitation of an insurer domiciled in this state has been entered, the receiver appointed under such order has a...
Part II - Florida Insurance Guaranty of Payments(ss. 631.50-631.70)
- §631.50 Title.
This part shall be known and may be cited as the "Florida Insurance Guaranty Association Act." History.--s. 1, ch. 70-20; s. 809(1st), ch. 82-243; ss....
- §631.51 Purposes.
The purposes of this part are to: (1) Provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in...
- §631.52 Scope.
This part shall apply to all kinds of direct insurance, except: (1) Life, annuity, health, or disability insurance; (2) Mortgage guaranty, financial guaranty, or other forms of...
- §631.53 Construction.
This part shall be liberally construed to effect the purposes set forth in s. 631.51, which shall constitute an aid and guide to interpretation. History.--s....
- §631.54 Definitions.
As used in this part: (1) "Account" means any one of the three accounts created by s. 631.55. (2) "Association" means the Florida Insurance Guaranty Association, Incorporated....
- §631.55 Creation of the association.
(1) There is created a nonprofit corporation to be known as the "Florida Insurance Guaranty Association, Incorporated." All insurers defined as member insurers in s. 631.54(7)...
- §631.56 Board of directors.
(1) The board of directors of the association shall consist of not less than five or more than nine persons serving terms as established in the...
- §631.57 Powers and duties of the association.
(1) The association shall: (a)1. Be obligated to the extent of the covered claims existing: a. Prior to adjudication of insolvency and arising within 30 days after the...
- §631.58 Plan of operation.
(1)(a) The association shall submit to the department a proposed plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and...
- §631.582 Public records exemption.
(1) The following records of the Florida Insurance Guaranty Association are confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution:...
- §631.59 Duties and powers of department and office.
(1) The department shall notify the association of the existence of an insolvent insurer not later than 3 days after it receives notice of the determination...
- §631.60 Effect of paid claims.
(1) Any person recovering under this part shall be deemed to have assigned her or his rights under the policy to the association to the extent...
- §631.61 Nonduplication of recovery.
(1) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer which is...
- §631.62 Prevention of insolvencies.
To aid in the detection and prevention of insurer insolvencies: (1) It shall be the duty of the board of directors, upon majority vote, to notify...
- §631.63 Examination of the association.
The association shall be subject to examination and regulation by the department. The board of directors shall submit, not later than March 30 of each...
- §631.64 Recognition of assessments in rates.
The rates and premiums charged for insurance policies to which this part applies may include amounts sufficient to recoup a sum equal to the amounts...
- §631.65 Prohibited advertisement or solicitation.
No person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed...
- §631.66 Immunity.
There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer, the association...
- §631.67 Stay of proceedings; reopening of default judgments.
All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court or before any quasi-judicial body...
- §631.68 Limitation; certain actions.
A covered claim as defined herein with respect to which settlement is not effected and suit is not instituted against the insured of an insolvent...
- §631.695 Revenue bond issuance through counties or municipalities.
(1) The Legislature finds: (a) The potential for widespread and massive damage to persons and property caused by hurricanes making landfall in this state can generate insurance...
- §631.70 Attorney's fee.
The provisions of s. 627.428 providing for an attorney's fee shall not be applicable to any claim presented to the association under the provisions of...
Part III - Life and Health Insurance Guaranty of Payments
(ss. 631.711-631.737)
- §631.711 Short title.
This part may be cited as the "Florida Life and Health Insurance Guaranty Association Act." History.--s. 1, ch. 79-189; s. 809(1st), ch. 82-243; ss. 187,...
- §631.712 Purpose; construction.
The purpose of this part is to protect policyowners, insureds, beneficiaries, annuitants, payees, and assignees of life insurance policies, health insurance policies, annuity contracts, and...
- §631.713 Application of part.
(1) This part shall apply to direct life insurance policies, health insurance policies, annuity contracts, and supplemental contracts with or without life contingencies issued by persons...
- §631.714 Definitions.
As used in this part, the term: (1) "Account" means any of the three accounts created in s. 631.715. (2) "Association" means the Florida Life and Health...
- §631.715 Florida Life and Health Insurance Guaranty Association.
(1) There is created a nonprofit legal entity to be known as the Florida Life and Health Insurance Guaranty Association. All member insurers shall be and...
- §631.716 Board of directors.
(1) The board of directors of the association shall be comprised of not fewer than five nor more than nine member insurers, serving terms as established...
- §631.717 Powers and duties of the association.
(1) If a domestic insurer is an impaired insurer, the association may, subject to the approval of the impaired insurer and the department: (a) Guarantee or reinsure,...
- §631.718 Assessments.
(1) For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the...
- §631.72 Premium or income tax credits for assessments paid.
(1) A member insurer may offset against either its premium tax liabilities imposed under s. 624.509 or its corporate income tax liabilities imposed under s. 220.11...
- §631.721 Plan of operation.
(1)(a) The association shall submit to the department a proposed plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and...
- §631.722 Powers and duties of department and office.
(1) The office shall: (a) Upon request of the board of directors, provide the association with a statement of the premiums in each of the appropriate states...
- §631.723 Prevention of insolvencies.
To aid in the detection and prevention of insurer insolvencies or impairments: (1) The board of directors may, upon majority vote, make reports and recommendations to...
- §631.724 Records and meetings of association.
Records shall be kept of all negotiations and meetings in which the association or its representatives discuss the activities of the association in carrying out...
- §631.725 Examination of the association; annual report.
The association shall be subject to examination and regulation by the department. The board of directors shall submit to the department, not later than May...
- §631.726 Tax exemptions.
The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied...
- §631.727 Immunity.
There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer or its...
- §631.728 Extent of liability of association.
For the purpose of carrying out its obligations under this part, the association shall be deemed to be a creditor of the impaired or insolvent...
- §631.729 Liability of insureds for unpaid assessments.
No provision of this part shall be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating...
- §631.731 Liquidation, rehabilitation, or conservation proceedings; distributions.
(1) Prior to the termination of any liquidation, rehabilitation, or conservation proceeding, the court may take into consideration the contributions of the respective parties, including the...
- §631.733 Stay of proceedings.
All proceedings in which the insolvent insurer is a party in any court in this state shall be stayed 60 days from the date an...
- §631.734 Reopening default judgments.
As to judgment under any decision, order, verdict, or finding based on default, the association may apply to have such judgment set aside by the...
- §631.735 Prohibited advertisement of Florida Life and Health Insurance Guaranty Association Act in sale of insurance.
No person shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed...
- §631.737 Rescission and review generally.
The association shall review claims and matters regarding covered policies based upon the record available to it on and after the date of liquidation. Notwithstanding...
Part IV - Health Maintenance Organization Consumer Assistance Plan
(ss. 631.811-631.828)
- §631.811 Short title.
This part may be cited as the "Florida Health Maintenance Organization Consumer Assistance Plan." History.--ss. 1, 23, ch. 88-388; ss. 187, 188, ch. 91-108; s....
- §631.812 Purpose; construction.
The purpose of this part is to protect the subscribers of HMOs, subject to certain limitations, against the failure of the HMO to perform its...
- §631.813 Application of part.
This part shall apply to HMO contractual obligations to residents of Florida by HMOs possessing a valid certificate of authority issued as provided by part...
- §631.814 Definitions.
As used in this part, the term: (1) "Plan" means the Florida Health Maintenance Organization Consumer Assistance Plan created by this part. (2) "Board" means the board...
- §631.815 Florida Health Maintenance Organization Consumer Assistance Plan.
There is created a nonprofit legal entity to be known as the Florida Health Maintenance Organization Consumer Assistance Plan. All HMOs shall be and must...
- §631.816 Board of directors.
(1) The board of directors of the plan shall consist of not less than five or more than nine persons serving terms as established in the...
- §631.817 Eligibility.
(1) Except as provided in subsection (2), any person of this state who has lost their health care coverage provided in an HMO due to insolvency...
- §631.818 Powers and duties of the plan.
(1) In the event that an HMO is insolvent, the plan shall: (a) Guarantee, reinsure, assume, or provide coverage for or cause to be guaranteed, reinsured, assumed,...
- §631.819 Assessments.
(1) For the purposes of providing the funds necessary to carry out the powers and duties of the plan, the board of directors shall assess the...
- §631.820 Plan of operation.
(1) The plan shall submit to the office a proposed plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and...
- §631.821 Powers and duties of the department.
(1) The office may suspend or revoke, after notice and hearing, the certificate of authority of a member HMO that fails to pay an assessment when...
- §631.822 Records of plan.
Records shall be kept of all meetings of the board and transactions under which the plan or its representatives carry out the plan's powers and...
- §631.823 Examination of the plan; annual report.
The plan shall be subject to examination and regulation by the office. The board of directors shall submit to the office and the department, not...
- §631.824 Tax exemptions.
The plan shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied...
- §631.825 Immunity.
There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member HMO or its...
- §631.826 Extent of liability of plan.
For the purpose of carrying out its obligations under this part, the plan shall be deemed to be a priority creditor of the insolvent HMO....
- §631.827 Prohibited advertisement.
No person, including an HMO, agent, or affiliate of an HMO shall make, publish, disseminate, circulate, or place before the public, or cause, directly or...
- §631.828 Assessments against member HMOs; income tax credit for assessments paid.
Any provisions of the law to the contrary notwithstanding, a member HMO may offset against its corporate income tax liability or other liabilities, on an...
Part V - Florida Workers' Compensation Insurance
guaranty Association(ss. 631.901-631.932)
- §631.901 Title.
This part may be cited as the "Florida Workers' Compensation Insurance Guaranty Association Act." History.--s. 20, ch. 97-262.
- §631.902 Purposes.
The purposes of this part are to: (1) Create a not-for-profit Florida Workers' Compensation Insurance Guaranty Association, Incorporated, to provide a mechanism for the payment of...
- §631.903 Construction.
The statutes controlling the corporation shall be construed liberally to achieve the purposes stated in s. 631.902. The corporation shall perform its functions under a...
- §631.904 Definitions.
As used in this part, the term: (1) "Corporation" means the Florida Workers' Compensation Insurance Guaranty Association, Incorporated. (2) "Covered claim" means an unpaid claim, including a...
- §631.911 Creation of the Florida Workers' Compensation Insurance Guaranty Association, Incorporated; merger; effect of merger.
(1)(a) The Florida Self-Insurance Fund Guaranty Association established in former part V of chapter 631 and the workers' compensation insurance account, which includes excess workers' compensation...
- §631.912 Board of directors.
(1) The board of directors of the corporation shall consist of 11 persons, 1 of whom is the insurance consumer advocate appointed under s. 627.0613 or...
- §631.913 Powers and duties of the corporation.
(1) The corporation is obligated to the extent of the full amount of the covered claims: (a) Existing before the adjudication of insolvency and arising within 30...
- §631.914 Assessments.
(1)(a) To the extent necessary to secure the funds for the payment of covered claims, and also to pay the reasonable costs to administer the same,...
- §631.916 Plan of operation.
The board of directors shall prepare and submit to the department a plan of operation and any amendments to the plan which are necessary or...
- §631.917 Prevention of insolvencies.
To aid in the detection and prevention of insolvencies or impairments: (1)(a) The board may make reasonable and lawful investigation into the practices of any third-party...
- §631.918 Immunity.
There is no liability on the part of, and a cause of action may not arise against, the corporation, its agents or employees, or members...
- §631.919 Prohibited advertisement of solicitation.
A person may not make, publish, disseminate, advertise, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated,...
- §631.921 Department powers.
The corporation shall be subject to examination by the department. By March 1 of each year, the board of directors shall cause a financial report...
- §631.922 Liability of members of an impaired self-insurance fund for unpaid claims.
This act may not be construed to reduce the liability of a member of an impaired self-insurance fund for the member's liability under s. 624.4621...
- §631.923 Effect of paid claims.
(1) Any person who recovers under this part is considered to have assigned his or her rights under the policy to the corporation to the extent...
- §631.924 Stay of proceedings; reopening of default judgments.
All proceedings in which the insolvent insurer or self-insurance fund is a party or is obligated to defend a party in any court or before...
- §631.926 Attorney's fees.
The provisions of s. 627.428 providing for an attorney's fee are inapplicable to any claim presented to the corporation under this part, unless the corporation...
- §631.927 Assumption of liability.
Notwithstanding s. 631.913, the corporation shall assume the liability for the payment of the workers' compensation indemnity and medical benefits that are due to claimants...
- §631.928 Florida Workers' Compensation Insurance Guaranty Association Account.
Notwithstanding the provisions of s. 215.3207, the Florida Workers' Compensation Insurance Guaranty Association Account is hereby created, to be managed by the Florida Workers' Compensation...
- §631.929 Election of remedies.
An injured worker who has a date of accident which occurred before January 1, 1994, and is not receiving benefits due under chapter 440 due...
- §631.931 Reports and recommendations by board; public records exemption.
Reports and recommendations made by the Board of Directors of the Florida Workers' Compensation Insurance Guaranty Association under s. 631.917 upon any matter germane to...
- §631.932 Negotiations; public meetings and records exemptions.
Negotiations held between an insurer and the Florida Workers' Compensation Insurance Guaranty Association are exempt from the provisions of s. 286.011 and s. 24(b), Art....
Last modified: March 26, 2010
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