Florida Statute 631.041 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXVII
INSURANCE

Chapter 631
INSURER INSOLVENCY; GUARANTY OF PAYMENT

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F.S. 631.041

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 the receiver and the office, which shall be permanent and survive the entry of an order of conservation, rehabilitation, or liquidation, and which shall prohibit:

(a) The commencement or continuation of judicial, administrative, or other action or proceeding against the insurer or against its assets or any part thereof;

(b) The enforcement of a judgment against the insurer or an affiliate obtained either before or after the commencement of the delinquency proceeding;

(d) Any act to create, perfect, or enforce a lien against property of the insurer, except that a secured claim as defined in s. 631.011(21) may proceed under s. 631.191 after the order of liquidation is entered;

(e) Any act to collect, assess, or recover a claim against the insurer, except claims as provided for under this chapter; and

(f) The setoff or offset of any debt owing to the insurer, except offsets as provided in s. 631.281.

(2) Upon written request of a person or entity subject to the stay against obtaining or enforcing a judgment against an insurer or affiliate provided in paragraph (1)(b) the court, with notice to the department and upon hearing, may grant relief from the stay provided the movant, who has the burden of proof, establishes by clear and convincing evidence that the judgment is not voidable or void by a receiver and that property from which the judgment would be satisfied does not constitute premium funds or another asset which belongs to the insurer.

(3) Upon application by the department pursuant to this part for an order to show cause or upon petition, or at any time thereafter, the court may without notice issue an injunction restraining the insurer and its officers, directors, stockholders, members, subscribers, and agents and all other persons from the transaction of its business or the waste or disposition of its property until the further order of the court.

(4) The court may without notice at any time during a proceeding under this chapter issue such other injunctions or orders as may be deemed necessary to prevent interference with the department or the proceeding; waste of the assets of the insurer; the commencement or prosecution of any actions; the obtaining of preferences, judgments, attachments, or other liens; or the making of any levy against the insurer or against its assets or any part thereof.

(5) Notwithstanding any other provision of law, no bond shall be required of the department as a prerequisite for the issuance of any injunction or restraining order pursuant to this section.

(6) The estate of an insurer in rehabilitation or liquidation which is injured by any willful violation of an applicable stay or injunction shall be entitled to actual damages, including costs and attorney’s fees, and, in appropriate circumstances, the receivership court may impose additional sanctions.

History.—s. 720, ch. 59-205; ss. 13, 35, ch. 69-106; s. 809(1st), ch. 82-243; s. 4, ch. 83-38; s. 39, ch. 88-166; ss. 83, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 7, ch. 2002-25; s. 29, ch. 2004-374; s. 4, ch. 2017-143.

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Amendments to 631.041

Annotations, Discussions, Cases:

Cases Citing Statute 631.041

Total Results: 20

Snyder v. Douglas

647 So. 2d 275, 1994 WL 685608

District Court of Appeal of Florida | Filed: Dec 9, 1994 | Docket: 437616

Cited 13 times | Published

alleged that such a stay was appropriate under section 631.041. The trial court concluded, however, that FIGA

Am. Bonding Co. v. Coastal Metal Sales

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

District Court of Appeal of Florida | Filed: Sep 13, 1996 | Docket: 1665821

Cited 7 times | Published

expect Arizona to honor a stay pursuant to section 631.041, Florida Statutes (1995), if Florida were the

Nova Ins. Group v. Dept. of Ins.

606 So. 2d 429, 1992 Fla. App. LEXIS 9768, 1992 WL 221534

District Court of Appeal of Florida | Filed: Sep 11, 1992 | Docket: 135999

Cited 6 times | Published

collect. The order also gives notice pursuant to section 631.041(1), Florida Statutes, that the department's

Florida Insurance Guaranty Ass'n v. Olympus Ass'n

34 So. 3d 791, 2010 Fla. App. LEXIS 6941, 2010 WL 1979242

District Court of Appeal of Florida | Filed: May 19, 2010 | Docket: 1131175

Cited 4 times | Published

for liquidation purposes, and pursuant to section 631.041(1), Florida Statutes, all actions against the

Jimmy Lang's Auto Service v. Proctor

667 So. 2d 334, 1995 WL 619881

District Court of Appeal of Florida | Filed: Oct 24, 1995 | Docket: 454485

Cited 4 times | Published

the insurer or its assets in accordance with section 631.041(1), Florida Statutes (1993). Relying upon that

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

902 So. 2d 833, 2005 WL 723866

District Court of Appeal of Florida | Filed: Mar 31, 2005 | Docket: 1257191

Cited 3 times | Published

court entered a notice of automatic stay under section 631.041(1), Florida Statutes (2002), which provides

Mantero-Atienza v. Salvador

807 So. 2d 163, 2002 WL 215420

District Court of Appeal of Florida | Filed: Feb 13, 2002 | Docket: 1505630

Cited 3 times | Published

stay in this case is not within the scope of section 631.041, Florida Statutes (2001). For present purposes

In Re Guarantee SEC. Life Ins. Co.

678 So. 2d 828, 1996 Fla. App. LEXIS 9736

District Court of Appeal of Florida | Filed: Aug 28, 1996 | Docket: 1470792

Cited 3 times | Published

commencement of the delinquency proceeding ..." Section 631.041(2) authorizes the receivership court to grant

Dolan v. HARTFORD INS. CO. OF THE SE

566 So. 2d 316, 1990 WL 116365

District Court of Appeal of Florida | Filed: Sep 28, 1990 | Docket: 1529241

Cited 3 times | Published

concur. NOTES [1] We note that subsequently section 631.041, Florida Statutes, has been amended to provide

Morrison v. Homewise Preferred Insurance Co.

209 So. 3d 682, 2017 WL 543427, 2017 Fla. App. LEXIS 1648

District Court of Appeal of Florida | Filed: Feb 10, 2017 | Docket: 4586777

Cited 2 times | Published

issuing an automatic mandatory stay under section 631.041(1), Florida Statutes (2011), of all legal proceedings

Florida Insurance Guaranty Association, Inc. v. Mendoza and Llanes

193 So. 3d 940, 2016 WL 1445424, 2016 Fla. App. LEXIS 5583

District Court of Appeal of Florida | Filed: Apr 13, 2016 | Docket: 3053145

Cited 2 times | Published

the parties were informed that, pursuant ,to section 631,041 of the Florida Statutes, all proceedings against

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

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

District Court of Appeal of Florida | Filed: Jan 17, 2003 | Docket: 461403

Cited 2 times | Published

which Frontier was a defendant in an action. Cf. § 631.041(1)(a), Fla.Stat. (2002). With this order in hand

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

103 So. 3d 1060, 2013 WL 132695, 2013 Fla. App. LEXIS 479, 38 Fla. L. Weekly Fed. D 123

District Court of Appeal of Florida | Filed: Jan 11, 2013 | Docket: 60226876

Cited 1 times | Published

done; it also granted an automatic stay under section 631.041(1), Florida Statutes with specified conditions

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

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

District Court of Appeal of Florida | Filed: Oct 2, 1995 | Docket: 1755759

Cited 1 times | Published

by its settlement agreement in violation of section 631.041 and the circuit court's show cause order. Also

Lakechea v. Magnolia Insurance Co.

146 So. 3d 1207, 2014 Fla. App. LEXIS 13284, 2014 WL 4230059

District Court of Appeal of Florida | Filed: Aug 27, 2014 | Docket: 1164426

Published

connection with any unpaid claims. Compare § 631.041, Fla. Stat. (2010) with § 631.57(2)(c)

Staffing Concepts International, Inc. v. Paul

704 So. 2d 691, 1997 Fla. App. LEXIS 14573, 1997 WL 786509

District Court of Appeal of Florida | Filed: Dec 24, 1997 | Docket: 64778362

Published

denial of a motion for a stay pursuant to section 631.041, Florida Statutes (1995), in' a rule nisi proceeding

PAYROLL TRANSFERS INTERSTATE v. Forshey

694 So. 2d 80, 1997 Fla. App. LEXIS 4004, 1997 WL 185606

District Court of Appeal of Florida | Filed: Apr 18, 1997 | Docket: 1450662

Published

been stayed pursuant to the provisions of section 631.041, Florida Statutes (1995). The JCC entered a

Peter v. State ex rel. Department of Insurance

678 So. 2d 828, 1996 Fla. App. LEXIS 6417, 1996 WL 332370

District Court of Appeal of Florida | Filed: Jun 19, 1996 | Docket: 64766884

Published

nominal party.” The court ordered: 1. The Florida Statute 631.041 automatic stay and injunctions contained

Westcott v. Thomas

819 F. Supp. 1056, 1993 U.S. Dist. LEXIS 5664, 1993 WL 138279

District Court, M.D. Florida | Filed: Apr 20, 1993 | Docket: 65983778

Published

any judgment against the Plan, pursuant to Section 631.041(1), Florida Statutes. The Amended Order of

Sierra v. International Medical Centers, Inc.

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

District Court of Appeal of Florida | Filed: Feb 7, 1989 | Docket: 64640341

Published

IMC.” *103The question presented is whether section 631.041, Florida Statutes, provides an automatic stay