631.041
Automatic stay; relief from stay; injunctions.
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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;
(c) Any act to obtain possession of property of the insurer;
(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.
Notes of Decisions
Cited in 20
cases, 1989–2017 · leading case: Florida Insurance Guaranty Association, Inc. v. Mendoza and Llanes
Florida Insurance Guaranty Association, Inc. v. Mendoza and Llanes (2016)
“§ 631.041(1), Fla. Stat. (2011). With regard to FIGA, however, the lawsuit is stayed automatically for a period of six months.”
In Re Guarantee SEC. Life Ins. Co. (1996)
“The appellants filed a motion requesting the receivership court to vacate this order and leave the automatic stay in place, asserting that the court had exceeded its statutory authority under section 631.041, which authorizes it to grant relief from an automatic stay only where…”
Nova Ins. Group v. Dept. of Ins. (1992)
“The order also gives notice pursuant to section 631.041(1), Florida Statutes, that the department's petition operates as an automatic stay, applicable to all persons other than the receiver, which prohibits the "commencement or continuation of judicial, administrative or other…”
PAYROLL TRANSFERS INTERSTATE v. Forshey (1997)
“PTI argued below and before this court that the workers' compensation proceedings should have been stayed pursuant to the provisions of section 631.041, Florida Statutes (1995).”
Morrison v. Homewise Preferred Insurance Co. (2017)
“§ 631.041(1), Fla. Stat. (2011). The second, which is relevant to this discussion, provides in pertinent part that “[a]ll proceedings in which the insolvent insurer is a party .”
Jimmy Lang's Auto Service v. Proctor (1995)
“The order also imposed a stay of judicial and administrative proceedings against the insurer or its assets in accordance with section 631.041(1), Florida Statutes (1993).”
Mantero-Atienza v. Salvador (2002)
“The plaintiff makes the mistaken argument that a stay should not be issued because the stay in this case is not within the scope of section 631.041, Florida Statutes (2001).”
Florida Insurance Guaranty Ass'n v. Olympus Ass'n (2010)
“On April 25, 2006, Southern Family was placed in receivership for liquidation purposes, and pursuant to section 631.041(1), Florida Statutes, all actions against the company were stayed.”
Ocean Bank v. STATE, DEPT. OF FIN. SERVICES (2005)
“The receivership court entered a notice of automatic stay under section 631.041(1), Florida Statutes (2002), which provides that the initiation of a delinquency petition operates as a matter of law as an automatic stay applicable to all persons and entities, except that a…”
Am. Bonding Co. v. Coastal Metal Sales (1996)
“[3] Just as the state of Florida would expect Arizona to honor a stay pursuant to section 631.041, Florida Statutes (1995), if Florida were the domiciliary state, Florida should do the same as a matter of comity when it is a reciprocal state under Arizona law.”
Peter v. State ex rel. Department of Insurance (1996)
“The appellants filed a motion requesting the receivership court to vacate this order and leave the automatic stay in place, asserting that the court had exceeded its statutory authority under section 631.041, which authorizes it to grant relief from an automatic stay only where…”
Frontier Ins. Co. v. AMER. TITLE SERV. (2003)
“§ 631.041(1)(a), Fla.Stat. (2002). With this order in hand, Frontier filed a notice of stay and suggestion of rehabilitation in the Citrus County Circuit Court on December 19, 2001.”
— 631.041(1) — 10 cases
Florida Insurance Guaranty Association, Inc. v. Mendoza and Llanes (2016)
“§ 631.041(1), Fla. Stat. (2011). With regard to FIGA, however, the lawsuit is stayed automatically for a period of six months.”
Morrison v. Homewise Preferred Insurance Co. (2017)
“§ 631.041(1), Fla. Stat. (2011). The second, which is relevant to this discussion, provides in pertinent part that “[a]ll proceedings in which the insolvent insurer is a party .”
Florida Insurance Guaranty Ass'n v. Olympus Ass'n (2010)
“On April 25, 2006, Southern Family was placed in receivership for liquidation purposes, and pursuant to section 631.041(1), Florida Statutes, all actions against the company were stayed.”
Ocean Bank v. STATE, DEPT. OF FIN. SERVICES (2005)
“The receivership court entered a notice of automatic stay under section 631.041(1), Florida Statutes (2002), which provides that the initiation of a delinquency petition operates as a matter of law as an automatic stay applicable to all persons and entities, except that a…”
Nova Ins. Group v. Dept. of Ins. (1992)
“The order also gives notice pursuant to section 631.041(1), Florida Statutes, that the department's petition operates as an automatic stay, applicable to all persons other than the receiver, which prohibits the "commencement or continuation of judicial, administrative or other…”
— 631.041(1)(a) — 4 cases
Frontier Ins. Co. v. AMER. TITLE SERV. (2003)
“§ 631.041(1)(a), Fla.Stat. (2002). With this order in hand, Frontier filed a notice of stay and suggestion of rehabilitation in the Citrus County Circuit Court on December 19, 2001.”
Jimmy Lang's Auto Service v. Proctor (1995)
“The order also imposed a stay of judicial and administrative proceedings against the insurer or its assets in accordance with section 631.041(1), Florida Statutes (1993).”
Nova Ins. Group v. Dept. of Ins. (1992)
“The order also gives notice pursuant to section 631.041(1), Florida Statutes, that the department's petition operates as an automatic stay, applicable to all persons other than the receiver, which prohibits the "commencement or continuation of judicial, administrative or other…”
PAYROLL TRANSFERS INTERSTATE v. Forshey (1997)
“PTI argued below and before this court that the workers' compensation proceedings should have been stayed pursuant to the provisions of section 631.041, Florida Statutes (1995).”
— 631.041(1)(d) — 1 case
Nova Ins. Group v. Dept. of Ins. (1992)
“The order also gives notice pursuant to section 631.041(1), Florida Statutes, that the department's petition operates as an automatic stay, applicable to all persons other than the receiver, which prohibits the "commencement or continuation of judicial, administrative or other…”
— 631.041(2) — 3 cases
In Re Guarantee SEC. Life Ins. Co. (1996)
“The appellants filed a motion requesting the receivership court to vacate this order and leave the automatic stay in place, asserting that the court had exceeded its statutory authority under section 631.041, which authorizes it to grant relief from an automatic stay only where…”
Nova Ins. Group v. Dept. of Ins. (1992)
“The order also gives notice pursuant to section 631.041(1), Florida Statutes, that the department's petition operates as an automatic stay, applicable to all persons other than the receiver, which prohibits the "commencement or continuation of judicial, administrative or other…”
Peter v. State ex rel. Department of Insurance (1996)
“The appellants filed a motion requesting the receivership court to vacate this order and leave the automatic stay in place, asserting that the court had exceeded its statutory authority under section 631.041, which authorizes it to grant relief from an automatic stay only where…”
— 631.041(4) — 2 cases
In Re Guarantee SEC. Life Ins. Co. (1996)
“The appellants filed a motion requesting the receivership court to vacate this order and leave the automatic stay in place, asserting that the court had exceeded its statutory authority under section 631.041, which authorizes it to grant relief from an automatic stay only where…”
Peter v. State ex rel. Department of Insurance (1996)
“The appellants filed a motion requesting the receivership court to vacate this order and leave the automatic stay in place, asserting that the court had exceeded its statutory authority under section 631.041, which authorizes it to grant relief from an automatic stay only where…”
— 631.041(l)(d) — 1 case
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