Florida Statute 631.051 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXVII
INSURANCE

Chapter 631
INSURER INSOLVENCY; GUARANTY OF PAYMENT

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F.S. 631.051

631.051 Grounds for rehabilitation; domestic insurers.—The department may petition for an order directing it to rehabilitate a domestic insurer or an alien insurer domiciled in this state on any one or more of the following grounds, that the insurer:

(1) Is impaired or insolvent;

(2) Has failed to comply with an order of the office to make good an impairment of capital or surplus or both;

(3) Is found by the office to be in such condition or is using or has been subject to such methods or practices in the conduct of its business, as to render its further transaction of insurance presently or prospectively hazardous to its policyholders, creditors, stockholders, or the public;

(4) Has failed, or its parent corporation, subsidiary, or affiliated person controlled by either the insurer or the parent corporation has failed, to submit its books, documents, accounts, records, and affairs pertaining to the insurer to the reasonable inspection or examination of the office or its authorized representative; or any individual exercising any executive authority in the affairs of the insurer, or parent corporation, or subsidiary, or affiliated person has refused to be examined under oath by the office or its authorized representative, whether within this state or otherwise, concerning the pertinent affairs of the insurer, or parent corporation or subsidiary or affiliated person; or if examined under oath refuses to divulge pertinent information reasonably known to her or him; or officers, directors, agents, employees, or other representatives of the insurer or parent corporation, subsidiary, or affiliated person have failed to comply promptly with the reasonable requests of the office or its authorized representative for the purposes of, and during the conduct of, any such examination;

(5) Has concealed or removed records or assets or otherwise violated s. 628.271 or s. 628.281;

(6) Through its board of directors or governing body is deadlocked in the management of the insurer’s affairs and that the members of a mutual, reciprocal, or any other type of organization or stockholders are unable to break the deadlock and that irreparable injury to the insurer, its creditors, its policyholders, its members or subscribers, or the public is threatened by reason thereof;

(7) Has transferred or attempted to transfer substantially its entire property or business, or has entered into any transaction the effect of which is to merge substantially its entire property or business into that of any other insurer or entity without having first obtained the written approval of the office under the provisions of s. 628.451, s. 628.461, or s. 628.4615, as the case may be;

(8) Has willfully violated its charter or certificate of incorporation or any law of this state;

(9) Is in such a position that control of it, whether by stock ownership or otherwise, and whether direct or indirect, is in one or more persons found by the office after notice and hearing to be dishonest or untrustworthy; or that the insurer has failed, upon order of the office and expiration of such reasonable time for such removal as the office shall specify in the order, to remove any person who in fact has executive authority, directly or indirectly, in the insurer, whether as an officer, director, manager, agent, employee, or otherwise, and if such person has been found by the office after notice and hearing, to be incompetent, dishonest, untrustworthy, or so lacking in insurance company managerial experience as to be hazardous to the insurance-buying public;

(10) Has been or is the subject of an application for the appointment of a receiver, trustee, custodian, or sequestrator of the insurer or its property otherwise than pursuant to the provisions of this code, but only if such an appointment has been made or is imminent;

(11) Has consented to such an order through a majority of its directors, stockholders, members, or subscribers;

(12) Has failed to pay a final judgment rendered against it in this state upon any insurance contract issued or assumed by it, within 60 days after the judgment became final, within 60 days after the time for taking an appeal has expired, or within 30 days after dismissal of an appeal before final determination, whichever date is the later;

(13) Has been the victim of embezzlement, wrongful sequestration, conversion, diversion, or encumbering of its assets; forgery or fraud affecting it; or other illegal conduct in, by, or with respect to it, which if established would threaten its solvency; or that the office has reasonable cause to so believe any of the foregoing has occurred or may occur;

(14) Is engaging in a systematic practice of reaching settlements with and obtaining releases from policyholders or third-party claimants and then unreasonably delaying payment of, or failing to pay, the agreed-upon settlements; or

(15) Within the previous 12 months has systematically attempted to compromise with creditors on the ground that it is financially unable to pay its claims in full.

History.—s. 721, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 70-27; s. 1, ch. 70-439; s. 809(1st), ch. 82-243; ss. 3, 17, ch. 86-250; s. 4, ch. 87-50; s. 10, ch. 90-248; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 397, ch. 97-102; s. 1344, ch. 2003-261.

F.S. 631.051 on Google Scholar

F.S. 631.051 on Casetext

Amendments to 631.051

Arrestable Offenses / Crimes under Fla. Stat. 631.051

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

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 631.051.

Annotations, Discussions, Cases:

Cases Citing Statute 631.051

Total Results: 20

FLORIDA INSURANCE GUARANTY ASSOCIATION v. YANICET REYES

Court: Fla. Dist. Ct. App. | Date Filed: 2020-09-30T00:53:00-07:00

Snippet: insureds for covered claims, not all claims. See § 631.51(1); Jones v. Fla. Ins. Guar. Ass'n, 908 So.

PHYLIS HEID v. FLORIDA INSURANCE GUARANTY ASSOC.

Court: Fla. Dist. Ct. App. | Date Filed: 2019-10-11T00:53:00-07:00

Snippet: because of the insolvency of an insurer." § 631.51(1). The courts have been directed by the Legislature…quot;to avoid excessive delay in payment," § 631.51(1). Because FIGA affirmatively denied Heid'

Gonzalez v. Homewise Preferred Insurance Company

Court: Fla. Dist. Ct. App. | Date Filed: 2017-02-15T00:00:00-08:00

Citation: 210 So. 3d 260, 2017 WL 603317, 2017 Fla. App. LEXIS 1958

Snippet: policyholders because of the insolvency of an insurer,” § 631.51(1). The Act expressly states that it is to be liberally

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: policyholders after their insurers have become insolvent. § 631.51(1), Fla. Stat. (2011). The FIGA Act is administered

Leandro de la Fuente v. Florida Insurance Guaranty Association

Court: Fla. | Date Filed: 2016-10-20T00:00:00-07:00

Citation: 202 So. 3d 396, 41 Fla. L. Weekly Supp. 473, 2016 Fla. LEXIS 2327

Snippet: cost of such protection among insurers. § 631.51, Fla. Stat. (2011); see 631.57, Fla.…claims,” resulting from an insurer’s insolvency. § 631.51, Fla. Stat. (2011). We have previously described…construed to effect the purposes set, forth in s. 631.51, [Florida Statutes],” this does not mean that the

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: promote the purposes articulated in section 631.51. Section 631.51(1) provides: “The purposes ... are to: …appointed the receiver for that insolvent insurer. § 631.051, Fla; Stat. (2011). As part of DFS’s receivership…policyholders because of the insolvency of an insurer[.]” § 631.51(1), Fla. Stat. (2011). Yet we need not employ a

New Hampshire Indemnity Company v. John Gray Damil Belizaire etc.

Court: Fla. Dist. Ct. App. | Date Filed: 2015-10-20T00:00:00-07:00

Citation: 177 So. 3d 56

Snippet: the insolvency of the insurer. See § 631.51(1).” Jones, 908 So.2d at 454. The court

Florida Office of Insurance Regulation v. Florida Department of Financial Services

Court: Fla. Dist. Ct. App. | Date Filed: 2015-03-12T00:00:00-07:00

Citation: 159 So. 3d 945, 2015 Fla. App. LEXIS 3576

Snippet: Regulation.” § 20.121(3)(a)l., Fla. Stat. See also § 631.051, Fla. Stat. (setting forth the grounds upon which…from other sources. OIR noted that under section 631.051(B), the Commissioner shall notify DFS “[u]pon a

Florida Insurance Guaranty v. Sill

Court: Fla. Dist. Ct. App. | Date Filed: 2014-12-12T00:00:00-08:00

Citation: 154 So. 3d 422, 2014 Fla. App. LEXIS 20156, 2014 WL 6990579

Snippet: Neighborhood Ass’n, 67 So.3d 187, 189 (Fla.2011); see §§ 631.51, 631.55, Fla. Stat. (2011). . FIGA also raises

Florida Insurance Guaranty Ass'n v. Martucci

Court: Fla. Dist. Ct. App. | Date Filed: 2014-12-05T00:00:00-08:00

Citation: 152 So. 3d 759, 2014 Fla. App. LEXIS 19791, 2014 WL 6833746

Snippet: Ass’n, 67 So.3d 187, 189 (Fla.2011)); see also §§ 631.51-.55, Fla. Stat. (2011). . The Homewise policy

Florida Insurance Guaranty v. Maroulis

Court: Fla. Dist. Ct. App. | Date Filed: 2014-10-17T00:00:00-07:00

Citation: 153 So. 3d 298, 2014 Fla. App. LEXIS 17012, 2014 WL 5285013

Snippet: Neighborhood Ass’n, 67 So.3d 187, 189 (Fla.2011); see §§ 631.51, 631.55, Fla. Stat. (2011). . Because this issue

Florida Insurance Guaranty v. Rodriguez

Court: Fla. Dist. Ct. App. | Date Filed: 2014-10-17T00:00:00-07:00

Citation: 153 So. 3d 301, 2014 Fla. App. LEXIS 17013, 2014 WL 5285005

Snippet: Neighborhood Ass’n, 67 So.3d 187, 189 (Fla.2011); see §§ 631.51, 631.55, Fla. Stat. (2011). . Because this issue

Florida Insurance Guaranty Ass'n v. Santos

Court: Fla. Dist. Ct. App. | Date Filed: 2014-10-17T00:00:00-07:00

Citation: 148 So. 3d 837, 2014 Fla. App. LEXIS 17011, 2014 WL 5285006

Snippet: Neighborhood Ass’n, 67 So.3d 187, 189 (Fla.2011); see §§ 631.51, 631.55, Fla. Stat. (2011). No. 5D13-3206

Florida Insurance Guaranty v. Reynolds

Court: Fla. Dist. Ct. App. | Date Filed: 2014-10-17T00:00:00-07:00

Citation: 148 So. 3d 840, 2014 Fla. App. LEXIS 17015, 2014 WL 5285001

Snippet: Neighborhood Ass’n, 67 So.3d 187, 189 (Fla.2011); see §§ 631.51, 631.55, Fla. Stat. (2011). . Because this issue

Florida Insurance Guaranty Ass'n v. Branco

Court: Fla. Dist. Ct. App. | Date Filed: 2014-09-19T00:00:00-07:00

Citation: 148 So. 3d 488, 2014 Fla. App. LEXIS 14602

Snippet: Ass'n, 67 So.3d 187, 189 (Fla.2011); see §§ 631.51, 631.55, Fla. Stat. (2011). . See § 631.67, Fla

Florida Insurance Guaranty Ass'n v. Bernard

Court: Fla. Dist. Ct. App. | Date Filed: 2014-05-14T00:00:00-07:00

Citation: 140 So. 3d 1023, 2014 WL 1921745, 2014 Fla. App. LEXIS 7160

Snippet: policyholders because of the insolvency of an insurer.” § 631.51(1), Fla. Stat. Thus, “when an insurer becomes insolvent

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: plans with which providers must comply.6 Section 631.051, referred to above in subsection 651.114(5), sets…policyholders, creditors, stockholders, or the public; § 631.051(1), (3). Based upon findings by OIR that an insurer

Florida Insurance Guaranty Ass'n v. Karelas

Court: Fla. Dist. Ct. App. | Date Filed: 2012-12-05T00:00:00-08:00

Citation: 106 So. 3d 1, 2012 WL 6049111, 2012 Fla. App. LEXIS 20814

Snippet: 631.55(1) mandated the creation of FIGA, and section 631.51(1) provides that its purpose is to ‘[pjrovide a

Interstate Fire & Casualty Co. v. Abernathy

Court: Fla. Dist. Ct. App. | Date Filed: 2012-05-24T00:00:00-07:00

Citation: 93 So. 3d 352, 2012 WL 1883116, 2012 Fla. App. LEXIS 8278

Snippet: the cost of such protection among insurers.” § 631.51(1)-(4), Fla. Stat. (2011). This Act established

Florida Insurance Guaranty Ass'n v. Devon Neighborhood Ass'n

Court: Fla. | Date Filed: 2011-06-30T00:00:00-07:00

Citation: 67 So. 3d 187, 36 Fla. L. Weekly Supp. 311, 2011 Fla. LEXIS 1526, 2011 WL 2566399

Snippet: by insurers which have become insolvent.[2]See § 631.51, Fla. Stat. (2010); O'Malley v. Fla. Ins.