631.031

Initiation and commencement of delinquency proceeding.

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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 proceedings must be initiated, the Director of the Office of Insurance Regulation shall notify the department of such determination and shall provide the department with all necessary documentation and evidence. If the director must notify the department of a determination regarding a property insurer, the notification must include an affidavit that identifies the grounds for rehabilitation pursuant to s. 631.051; the date that each insurer was deemed impaired of capital or surplus, as the terms impairment of capital and impairment of surplus are defined in s. 631.011, or insolvent, as the term insolvency is defined in s. 631.011; a concise statement of the circumstances that led to the insurer’s delinquency; and a summary of the actions taken by the insurer and the office to avoid delinquency. The department shall then initiate such delinquency proceedings.

(2) The department may commence any such proceeding by application to the court for an order directing the insurer to show cause why the department should not have the relief prayed for. On the return of such order to show cause, and after a full hearing, the court shall either deny the application or grant the application, together with such other relief as the nature of the case and the interests of the policyholders, creditors, stockholders, members, subscribers, or public may require. The department may also commence any such proceeding by application to the court by petition for the entry of a consent order of conservation, rehabilitation, or liquidation.

(3) An insurer subject to an order to show cause entered pursuant to this chapter must file its written response to the order, together with any defenses it may have to the department’s allegations, no later than 20 days after service of the order to show cause, but no less than 15 days before the date of the hearing set by the order to show cause.

(4) A hearing held pursuant to this chapter to determine whether cause exists for the department to be appointed receiver must be commenced within 60 days after an order directing an insurer to show cause.

History.—s. 719, ch. 59-205; ss. 13, 35, ch. 69-106; s. 213, ch. 77-104; s. 809(1st), ch. 82-243; s. 38, ch. 88-166; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 1343, ch. 2003-261; s. 3, ch. 2017-143; s. 20, ch. 2022-268.

Notes of Decisions

Cited in 7 cases (1 in the last 5 years), 1971–2025 · leading case: Florida Office of Insurance Regulation v. Florida Department of Financial Services

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Florida Office of Insurance Regulation v. Florida Department of Financial Services (2015) fladistctapp · cites it 4× “McCarty stated that he referred the insurance companies to DFS in 2006 as he was statutorily required to do by section 631.031 “ ‘[ujpon a determination by the office ’ ” that the insurer was insolvent.”

Dolan v. HARTFORD INS. CO. OF THE SE (1990) fladistctapp · cites it 2× “041, Florida Statutes, has been amended to provide for an automatic stay in proceedings under section 631.031, Florida Statutes. [2] The incident in this suit occurred during the period, prior to October 1982, when joinder of the insurers was authorized.”

Florida Dept. of Ins. v. Cypress Ins. Co. (1995) fladistctapp · cites it 3× “§ 631.031, Fla. Stat. (1991). AFFIRMED. DAVIS, J.”

PAYROLL TRANSFERS INTERSTATE v. Forshey (1997) fladistctapp “041, Florida Statutes (1995), which provides, in pertinent part, that the commencement of delinquency proceedings under section 631.031 operates as an automatic stay which prohibits "[t]he commencement or continuation of judicial, administrative, or other action or proceeding…”

In re Penn Treaty Network America Insurance (2015) pa “1995) (withholding deference relative to an insurance department’s “findings and interpretation regarding the necessity for liquidating or rehabilitating” an insurance company per a provision of' Florida law investing the courts with the duty to determine whether appropriate…”

In the Matter of the Liquidation of Scottish RE (U.S.) Inc. (2025) delch · cites it 2× “§ 5903) 20-631 Fla. Stat. § 631.031 (1), (3), (4) (no DUILA Ark.”

Williams v. Gottlieb (1971) fla “” The appellant, as Insurance Commissioner of the State of Florida, is the receiver of an insolvent Florida insurance company, State Fire and Casualty Company, hereinafter referred to as State Fire, by virtue of a delinquency proceeding filed April 2, 1969, under Florida…”

— 631.031(1) — 1 case

Florida Office of Insurance Regulation v. Florida Department of Financial Services (2015) fladistctapp “McCarty stated that he referred the insurance companies to DFS in 2006 as he was statutorily required to do by section 631.031 “ ‘[ujpon a determination by the office ’ ” that the insurer was insolvent.”

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