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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F.S. 631.041 on Casetext

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: Fla. Dist. Ct. App. | Date Filed: 2017-02-10T00:00:00-08:00

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…delinquency petition against . the insolvent insurer. § 631.041(1), Fla. Stat. (2011). The second, which is relevant

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

Court: Fla. Dist. Ct. App. | Date Filed: 2016-04-13T00:00:00-07:00

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…stayed with regard to the insolvent insurer. § 631.041(1), Fla. Stat. (2011). With regard to FIGA…Order requiring the liquidation of First Home. § 631.041(1), Fla. Stat. (2011). Mendoza’s substitution…insurer is permanently stayed by virtue of section 631.041(1). Presumably, had the Legislature intended for

Lakechea v. Magnolia Insurance Co.

Court: Fla. Dist. Ct. App. | Date Filed: 2014-08-27T00:00:00-07:00

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)(

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

Court: Fla. Dist. Ct. App. | Date Filed: 2013-01-11T00:00:00-08:00

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: Fla. Dist. Ct. App. | Date Filed: 2010-05-19T00:00:00-07:00

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: Fla. Dist. Ct. App. | Date Filed: 2005-03-31T00:00:00-08:00

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: Fla. Dist. Ct. App. | Date Filed: 2003-01-16T23:53:00-08:00

Citation: 838 So. 2d 1178

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: Fla. Dist. Ct. App. | Date Filed: 2002-02-12T23:53:00-08:00

Citation: 807 So. 2d 163

Snippet: in this case is not within the scope of section 631.041, Florida Statutes (2001). For present purposes,…assume that is so. Regardless of whether section 631.041 applies, the New York court in its Order of Rehabilitation

Staffing Concepts International, Inc. v. Paul

Court: Fla. Dist. Ct. App. | Date Filed: 1997-12-24T00:00:00-08:00

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 …the receiver and a stay provision, pursuant to 631.041, which stayed all proceedings against the insurer… a stay of the proceedings pursuant to section 631.041, as it had done previously in the workers’ compensation…Forshey, the court held, inter alia, that section 631.041 stays proceedings only against the insolvent insurer

PAYROLL TRANSFERS INTERSTATE v. Forshey

Court: Fla. Dist. Ct. App. | Date Filed: 1997-04-18T00:53:00-07:00

Citation: 694 So. 2d 80

Snippet: been stayed pursuant to the provisions of section 631.041, Florida Statutes (1995). The JCC entered a separate…was asserted to bar these proceedings is section 631.041, Florida Statutes (1995), which provides, in pertinent…that it should have been protected under section 631.041 because the receiver has the power to make assessments…;s assets are not receivership assets. Section 631.041 only stays proceedings against the insurer or its…insurer is protected by the provisions of section 631.041(1)(a)"). The claimant's action against

Am. Bonding Co. v. Coastal Metal Sales

Court: Fla. Dist. Ct. App. | Date Filed: 1996-09-13T00:53:00-07:00

Citation: 679 So. 2d 1250

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: Fla. Dist. Ct. App. | Date Filed: 1996-08-28T00:53:00-07:00

Citation: 678 So. 2d 828

Snippet: should have vacated its prior order. Sections 631.041(1)(a) and (b), Florida Statutes, provide that a…of the delinquency proceeding ..." Section 631.041(2) authorizes the receivership court to grant relief…express authorization. To the extent that section 631.041(4) may be read to authorize the issuance of an …against appellants, but we do not read section 631.041(1) as prohibiting discovery properly sought from… and noting that under sections 631.031(4) and 631.041(1), Florida Statutes (1991), Seapine was enjoined

Peter v. State ex rel. Department of Insurance

Court: Fla. Dist. Ct. App. | Date Filed: 1996-06-19T00:00:00-07:00

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

Snippet: should have vacated its prior order. Sections 631.041(l)(a) and (b), Florida Statutes, provide that a…commencement of the delinquency proceeding ...” Section 631.041(2) authorizes the receivership court to grant relief…express authorization. To the extent that section 631.041(4) may be read to authorize the issuance of an …against appellants, but we do not read section 631.041(1) as prohibiting discovery properly sought from

Jimmy Lang's Auto Service v. Proctor

Court: Fla. Dist. Ct. App. | Date Filed: 1995-10-24T00:00:00-07:00

Citation: 667 So. 2d 334

Snippet: insurer or its assets in accordance with section 631.041(1), Florida Statutes (1993). Relying upon that …*335 is protected by the provisions of section 631.041(1)(a), Florida Statutes: (1) An application or

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

Court: Fla. Dist. Ct. App. | Date Filed: 1995-10-02T00:53:00-07:00

Citation: 660 So. 2d 1177

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

Snyder v. Douglas

Court: Fla. Dist. Ct. App. | Date Filed: 1994-12-08T23:53:00-08:00

Citation: 647 So. 2d 275

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: Fla. Dist. Ct. App. | Date Filed: 1992-09-11T00:53:00-07:00

Citation: 606 So. 2d 429

Snippet: The order also gives notice pursuant to section 631.041(1), Florida Statutes, that the department's…that the stay was appropriate pursuant to section 631.041(1)(a) which prohibits "the commencement or…should not have been stayed pursuant to section 631.041(1)(d). A good example of the application of the…Inc., 538 So.2d 102 (Fla. 3d DCA 1989). Section 631.041(2) describes the procedure by which a person affected

Dolan v. HARTFORD INS. CO. OF THE SE

Court: Fla. Dist. Ct. App. | Date Filed: 1990-09-28T00:53:00-07:00

Citation: 566 So. 2d 316

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

Sierra v. International Medical Centers, Inc.

Court: Fla. Dist. Ct. App. | Date Filed: 1989-02-07T00:00:00-08:00

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…appeal was pending, the legislature amended section 631.041, effective August 5, 1988, which previously was…, that the automatic stay provision of section 631.041(l)(d) does not prevent a foreclosure action on

Springer v. Colburn

Court: Fla. | Date Filed: 1964-02-18T23:53:00-08:00

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