Florida Statute 631.011 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXVII
INSURANCE

Chapter 631
INSURER INSOLVENCY; GUARANTY OF PAYMENT

View Entire Chapter

F.S. 631.011

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 ownership of voting securities;

(b) Common managerial control; or

(c) Collusive participation by the management of the insurer and affiliate in the management of the insurer or the affiliate.

(2) “Ancillary state” means, any state other than a domiciliary state.

(3) “Assets,” as used in this section, means only allowed assets as defined in chapter 625.

(4) “Bona fide holder for value” means a person who, while not possessing information that would lead a reasonable person similarly situated to believe that the insurer is insolvent or is experiencing an impairment of capital or an impairment of surplus and while unaware of the imminence or pendency of any receivership proceeding against the insurer, has, in the exercise of reasonable business judgment, exchanged his or her own funds, assets, or property for funds, assets, or property of the insurer having an equivalent market value.

(5) “Court” refers to the circuit court in which the receivership proceeding is pending.

(6) “Delinquency proceeding” means any proceeding commenced against an insurer pursuant to this chapter for the purpose of liquidating, rehabilitating, reorganizing, or conserving such insurer.

(7) “Domiciliary state” means the state in which an insurer is incorporated or organized or, in the case of an insurer incorporated or organized in a foreign country, the state in which such insurer, having become authorized to do business in such state, has, at the commencement of a delinquency proceeding, the largest amount of its assets held in trust and assets held on deposit for the benefit of its policyholders or policyholders and creditors in the United States; and any such insurer is deemed to be domiciled in such state.

(8) “Fair consideration” means that consideration which is given for property or assets of an insurer when, in exchange for the funds, assets, or property and in good faith, property is conveyed, services are rendered, or an enforceable obligation not invalidated by the receivership proceedings is created having a value to the insurer of not less than the value of the funds, assets, or property given in exchange.

(9) “Foreign country” means territory not in any state.

(10) “General assets” means all property, real, personal, or otherwise, not specifically mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of specified persons or a limited class or classes of persons, and as to such specifically encumbered property the term includes all such property or its proceeds in excess of the amount necessary to discharge the sum or sums secured thereby. Assets held in trust and assets held on deposit for the security or benefit of all policyholders or all policyholders and creditors in the United States shall be deemed general assets.

(11) “Good faith,” as used in ss. 631.262 and 631.263, means honesty in fact, including, but not limited to, the exercise of reasonable business judgment, in the conduct or transaction concerned, together with the absence of information that would lead a reasonable person in the same position to know that the insurer is insolvent or is experiencing an impairment of capital or an impairment of surplus and together with the absence of knowledge regarding the imminence or pendency of any receivership proceeding against the insurer.

(12) “Impairment of capital” means that the minimum surplus required to be maintained in s. 624.408 has been dissipated and the insurer is not possessed of assets at least equal to all its liabilities together with its total issued and outstanding capital stock, if a stock insurer, or the minimum surplus or net trust fund required by s. 624.407, if a mutual, reciprocal, or business trust insurer.

(13) “Impairment of surplus” means that the surplus of a stock insurer, the additional surplus of a mutual or reciprocal insurer, or the additional net trust fund of a business trust insurer does not comply with the requirements of s. 624.408.

(14) “Insolvency” means that all the assets of the insurer, if made immediately available, would not be sufficient to discharge all its liabilities or that the insurer is unable to pay its debts as they become due in the usual course of business. When the context of any provision of this code so indicates, insolvency also includes and is defined as “impairment of surplus,” as defined in subsection (13), and “impairment of capital,” as defined in subsection (12).

(15) “Insurer,” in addition to persons so defined under s. 624.03, also includes persons purporting to be insurers or organizing, or holding themselves out as organizing, in this state for the purpose of becoming insurers and all insurers who have policyholders resident in this state.

(16) “Liabilities,” as used in subsections (12) and (14), means all liabilities, including those specifically required in s. 625.041.

(17) “Property” includes:

(a) All right, title, and interest of the insolvent entity, whether legal or equitable, tangible or intangible, or choate or inchoate, and includes choses in action, contract rights, and any other interest recognized under the laws of this state.

(b) Entitlements that existed prior to the entry of an order of conservation, rehabilitation, or liquidation and entitlements that may arise by operation of the provisions of this part or other provisions of law allowing the department to avoid prior transfers or assert other rights in its capacity as receiver.

(c) All records and data that are otherwise the property of the insolvent insurer, in whatever form maintained, including, but not limited to, claims and claim files, application files, litigation files, premium records, rate books, underwriting manuals, personnel records, or financial records, or similar records within the possession, custody, or control of a managing general agent, third-party administrator, management company, accountant, attorney, affiliate, or other person.

(18) “Receiver” means a receiver, liquidator, rehabilitator, reorganizer, or conservator, as the context may require.

(19) “Receivership” means the placement of an insurer under the control of a receiver pursuant to a delinquency proceeding under this part.

(20) “Reciprocal state” means any state other than this state in which in substance and effect the provisions of the Insurers Rehabilitation and Liquidation Act are in force, including the provisions requiring that the commissioner of insurance or equivalent insurance supervisory official be the receiver of a delinquent insurer.

(21) “Secured claim” means any claim secured by mortgage, trust deed, pledge, deposit as security, escrow, or otherwise but does not include a special deposit claim, a claim against general assets, or a claim based on mere possession. The term also includes a claim which more than 4 months before the commencement of a delinquency proceeding in the state of the insurer’s domicile has become a lien upon specific assets by reason of judicial process.

(22) “Special deposit claim” means any claim secured by a deposit made pursuant to statute for the security or benefit of a limited class or classes of persons, but not including any general assets.

(23) “State” is as defined in s. 624.08.

History.—s. 717, ch. 59-205; ss. 13, 35, ch. 69-106; s. 2, ch. 70-27; s. 1, ch. 70-439; s. 809(1st), ch. 82-243; s. 2, ch. 83-38; s. 1, ch. 87-350; s. 5, ch. 89-360; ss. 82, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 26, ch. 93-410; s. 4, ch. 2002-25.

F.S. 631.011 on Google Scholar

F.S. 631.011 on Casetext

Amendments to 631.011

Arrestable Offenses / Crimes under Fla. Stat. 631.011

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 631.011.

Annotations, Discussions, Cases:

Cases Citing Statute 631.011

Total Results: 20

Devonshire at PGA National, LLC v. State ex rel. Department of Financial Services

Court: District Court of Appeal of Florida | Date Filed: 2013-01-11

Citation: 103 So. 3d 1060, 2013 WL 132695, 2013 Fla. App. LEXIS 479

Snippet: become due in the usual course of business.” § 631.011(14). . DFS also argues that Devonshire has no

State Department of Financial Services v. Branch Banking & Trust Co.

Court: District Court of Appeal of Florida | Date Filed: 2010-07-13

Citation: 40 So. 3d 829, 2010 Fla. App. LEXIS 10147, 2010 WL 2732606

Snippet: issue; it does not require mutual debts. See § 631.011(21), Fla. Stat. (2009) (providing that "`[s]ecured

Ocean Bank v. STATE, DEPT. OF FIN. SERVICES

Court: District Court of Appeal of Florida | Date Filed: 2005-03-31

Citation: 902 So. 2d 833, 2005 WL 723866

Snippet: except that a secured claim as defined in section 631.011(21) may proceed under section 631.191 after the

Gruber v. Caremark, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2003-08-29

Citation: 853 So. 2d 540, 2003 Fla. App. LEXIS 12852, 2003 WL 22023305

Snippet: section 631.011(7), Florida Statutes (2002), and arguably is a reciprocal state under section 631.011(20)

Frontier Ins. Co. v. AMER. TITLE SERV.

Court: District Court of Appeal of Florida | Date Filed: 2003-01-17

Citation: 838 So. 2d 1178, 2003 Fla. App. LEXIS 287, 2003 WL 131638

Snippet: Liquidation Act, is by definition a reciprocal state. § 631.011(20), Fla. Stat. (2002). Thus, under principles

Am. Bonding Co. v. Coastal Metal Sales

Court: District Court of Appeal of Florida | Date Filed: 1996-09-13

Citation: 679 So. 2d 1250, 1996 Fla. App. LEXIS 9462, 1996 WL 517155

Snippet: "domiciliary state" for ABC under the UILA.[1]See § 631.011(6), Fla. Stat. (1993); Ariz.Rev.Stat. Ann. § 20-611(3)

Provident Capital Indemnity, Ltd. v. State ex rel. Department of Insurance of the State of Florida

Court: District Court of Appeal of Florida | Date Filed: 1996-07-03

Citation: 677 So. 2d 363, 1996 Fla. App. LEXIS 6886, 1996 WL 364736

Snippet: reorganizing, or conserving such insurer.” § 631.011(5), Fla. Stat. (1993). Accordingly, the circuit

Florida Dept. of Ins. v. Cypress Ins. Co.

Court: District Court of Appeal of Florida | Date Filed: 1995-10-02

Citation: 660 So. 2d 1177, 1995 Fla. App. LEXIS 10285, 1995 WL 573047

Snippet: was insolvent within the meaning of subsection 631.011(11) due to "excessive losses caused in part by

Hobbs v. Don Mealey Chevrolet, Inc.

Court: District Court of Appeal of Florida | Date Filed: 1994-09-23

Citation: 642 So. 2d 1149, 1994 WL 515723

Snippet: rehabilitation, reorganization and conservation. § 631.011(5), Fla. Stat. (1993). Thus, in amending the statute

Nova Ins. Group v. Dept. of Ins.

Court: District Court of Appeal of Florida | Date Filed: 1992-09-11

Citation: 606 So. 2d 429, 1992 Fla. App. LEXIS 9768

Snippet: "reciprocal state" within the meaning of section 631.011(14), Florida Statutes, defined as a state other

State, Department of Insurance v. State Mutual Life Assurance Co. of America

Court: District Court of Appeal of Florida | Date Filed: 1992-06-11

Citation: 604 So. 2d 505, 1992 Fla. App. LEXIS 6475

Snippet: Although the term "affiliate” was used in section 631.011, Florida Statutes (1986), a fraudulent conveyance

Sierra v. International Medical Centers, Inc.

Court: District Court of Appeal of Florida | Date Filed: 1989-02-07

Citation: 538 So. 2d 102, 14 Fla. L. Weekly 410, 1989 Fla. App. LEXIS 535, 1989 WL 8359

Snippet: secured claim as defined in s. 631.011(15); _ (emphasis added) Section 631.011(15) states: (15) “Secured claim”

Ramos v. Jackson

Court: District Court of Appeal of Florida | Date Filed: 1987-08-18

Citation: 510 So. 2d 1241, 12 Fla. L. Weekly 2037

Snippet: The trial court held that pursuant to Section 631.011(10),[1] Florida Statutes (1985), Ch. 631, Florida

Urich & Shenkman, P.A. v. Horizon Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 1986-07-15

Citation: 491 So. 2d 1195, 11 Fla. L. Weekly 1545, 1986 Fla. App. LEXIS 8774

Snippet: a secured claim as contemplated under Section 631.011(14), Florida Statutes (1983), and determining the

D.R. Mertens, Inc. v. State ex rel. Department of Insurance

Court: District Court of Appeal of Florida | Date Filed: 1985-11-15

Citation: 478 So. 2d 1132, 10 Fla. L. Weekly 2545, 1985 Fla. App. LEXIS 16832

Snippet: Florida Home impaired within the meaning of Section 631.011(3) and (4), Florida Statutes, and appointed the

DR Mertens, Inc. v. STATE EX REL., DEPT. OF INSU.

Court: District Court of Appeal of Florida | Date Filed: 1985-11-15

Citation: 478 So. 2d 1132

Snippet: Florida Home impaired within the meaning of Section 631.011(3) and (4), Florida Statutes, and appointed the

Insurance Commissioner v. State ex rel. Department of Insurance

Court: District Court of Appeal of Florida | Date Filed: 1982-03-11

Citation: 411 So. 2d 269, 1982 Fla. App. LEXIS 19450

Snippet: the ancillary state here, has adopted it. §§ 631.011(12) and 631.211, Fla.Stat. (1979). California,

FLORIDA INS. GUARANTY ASSOC., INC. v. State Ex Rel. Department of Insurance

Court: District Court of Appeal of Florida | Date Filed: 1981-06-30

Citation: 400 So. 2d 813

Snippet: an order finding Main insolvent under Section 631.011(5), Florida Statutes (1979), and appointing the

FLORIDA INS. GUARANTY ASS'N, INC. v. Dolan

Court: District Court of Appeal of Florida | Date Filed: 1978-02-07

Citation: 355 So. 2d 141, 1978 Fla. App. LEXIS 15295

Snippet: become and was declared insolvent pursuant to § 631.011(5), Florida Statutes (1975). Pursuant to federal

Johnson v. Government Employees Ins. Co.

Court: District Court of Appeal of Florida | Date Filed: 1976-05-04

Citation: 333 So. 2d 542

Snippet: rely in support of their position upon Chapter 631.011(5) of the *544 Florida Statutes which defines the