Florida Statute 631.041 | Lawyer Caselaw & Research

The 2024 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

Arrestable Offenses / Crimes under Fla. Stat. 631.041

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

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 631.041.

Annotations, Discussions, Cases:

Cases Citing Statute 631.041

Total Results: 20

Morrison v. Homewise Preferred Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 2017-02-10

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

Snippet: 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

Court: District Court of Appeal of Florida | Date Filed: 2016-04-13

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

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

Lakechea v. Magnolia Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 2014-08-27

Citation: 146 So. 3d 1207, 2014 Fla. App. LEXIS 13284

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

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

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

Court: District Court of Appeal of Florida | Date Filed: 2010-05-19

Citation: 34 So. 3d 791, 2010 Fla. App. LEXIS 6941

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

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

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

Mantero-Atienza v. Salvador

Court: District Court of Appeal of Florida | Date Filed: 2002-02-13

Citation: 807 So. 2d 163, 2002 WL 215420

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

Staffing Concepts International, Inc. v. Paul

Court: District Court of Appeal of Florida | Date Filed: 1997-12-24

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

Snippet: 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

Court: District Court of Appeal of Florida | Date Filed: 1997-04-18

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

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

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

In Re Guarantee SEC. Life Ins. Co.

Court: District Court of Appeal of Florida | Date Filed: 1996-08-28

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

Snippet: should have vacated its prior order. Sections 631.041(1)(a) and (b), Florida Statutes, provide that a

Peter v. State ex rel. Department of Insurance

Court: District Court of Appeal of Florida | Date Filed: 1996-06-19

Citation: 678 So. 2d 828, 1996 Fla. App. LEXIS 6417

Snippet: and noting that under sections 631.031(4) and 631.041(1), Florida Statutes (1991), Seapine was enjoined

Jimmy Lang's Auto Service v. Proctor

Court: District Court of Appeal of Florida | Date Filed: 1995-10-24

Citation: 667 So. 2d 334, 1995 WL 619881

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

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

Snyder v. Douglas

Court: District Court of Appeal of Florida | Date Filed: 1994-12-09

Citation: 647 So. 2d 275, 1994 WL 685608

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

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

Dolan v. HARTFORD INS. CO. OF THE SE

Court: District Court of Appeal of Florida | Date Filed: 1990-09-28

Citation: 566 So. 2d 316, 1990 WL 116365

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

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: *103The question presented is whether section 631.041, Florida Statutes, provides an automatic stay of

Springer v. Colburn

Court: Supreme Court of Florida | Date Filed: 1964-02-19

Citation: 162 So. 2d 513

Snippet: 1959. [2] Fla. Stat. §§ 631.011(2-3), 631.031, 631.041, 631.141-631.211 (1961), F.S.A. [3] 153 So.2d