Florida Statutes Part I - Insurer Insolvency: Rehabilitation And Liquidation (Ss. 631.001-631.401)

• 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 this...
• 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 through:(a) Equity...
• 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...
• 631.2715 - Liability Under Federal Priority Of Claims Law.
  The State Risk Management Trust Fund shall cover department officers, employees, agents, and other representatives for any liability under the federal act relating to priority...
• 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 representative...
• 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...
• 631.400 - Rehabilitation Of Title Insurer.
  (1) After the entry of an order of rehabilitation, the receiver shall review the condition of the insurer and file a plan of rehabilitation for approval...
• 631.401 - Recovery Of Assessments And Assumed Policy Obligations.
  (1) Upon the making of any assessment allowed by s. 631.400, the office shall order a surcharge or, if a surcharge is currently in effect, an...

Last modified: September 23, 2016