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The 2025 Florida Statutes
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F.S. 631.051631.051 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.
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Annotations, Discussions, Cases:
Cases Citing Statute 631.051
Total Results: 31
908 So. 2d 435, 2005 WL 1580606
Supreme Court of Florida | Filed: Jul 7, 2005 | Docket: 1724747
Cited 103 times | Published
policyholders because of the insolvency of an insurer." § 631.51(1), Fla. Stat. (1995). The Act specifically provides
67 So. 3d 187, 36 Fla. L. Weekly Supp. 311, 2011 Fla. LEXIS 1526, 2011 WL 2566399
Supreme Court of Florida | Filed: Jun 30, 2011 | Docket: 434989
Cited 48 times | Published
by insurers which have become insolvent.[2]See § 631.51, Fla. Stat. (2010); O'Malley v. Fla. Ins. Guar
383 So. 2d 974, 1980 Fla. App. LEXIS 16736
District Court of Appeal of Florida | Filed: May 27, 1980 | Docket: 457563
Cited 15 times | Published
policies of insurers which have become insolvent." § 631.51, Fla. Stat. (1979). In establishing the institution
647 So. 2d 275, 1994 WL 685608
District Court of Appeal of Florida | Filed: Dec 9, 1994 | Docket: 437616
Cited 13 times | Published
policyholders because of the insolvency of an insurer." § 631.51(1); see also O'Malley v. Florida Ins. Guar. Ass'n
642 So. 2d 1149, 1994 WL 515723
District Court of Appeal of Florida | Filed: Sep 23, 1994 | Docket: 1529494
Cited 11 times | Published
sections concerning grounds for rehabilitation (section 631.051), grounds for liquidation (section 631.061)
140 So. 3d 1023, 2014 WL 1921745, 2014 Fla. App. LEXIS 7160
District Court of Appeal of Florida | Filed: May 14, 2014 | Docket: 60241342
Cited 6 times | Published
policyholders because of the insolvency of an insurer.” § 631.51(1), Fla. Stat. Thus, “when an insurer becomes
355 So. 2d 141, 1978 Fla. App. LEXIS 15295
District Court of Appeal of Florida | Filed: Feb 7, 1978 | Docket: 1360742
Cited 6 times | Published
53. The purposes of this statute, as stated in § 631.51 are as follows:
"(1) Provide a mechanism for the
538 So. 2d 482, 1989 WL 5672
District Court of Appeal of Florida | Filed: Jan 27, 1989 | Docket: 1517085
Cited 5 times | Published
construed" to effect the purposes set forth in section 631.51. The enumerated purposes found in that section
93 So. 3d 352, 2012 WL 1883116, 2012 Fla. App. LEXIS 8278
District Court of Appeal of Florida | Filed: May 24, 2012 | Docket: 60310552
Cited 4 times | Published
“[a]ssess the cost of such protection among insurers.” § 631.51(1)-(4), Fla. Stat. (2011). This Act established
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
policyholders because of the insolvency of an insurer." § 631.51(1), Fla. Stat. (2008) (emphasis added). But "the
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
policyholders after their insurers have become insolvent. § 631.51(1), Fla. Stat. (2011). The FIGA Act is administered
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
appointed the receiver for that insolvent insurer. § 631.051, Fla; Stat. (2011). As part of DFS’s receivership
44 So. 3d 1191, 2010 WL 3766879
District Court of Appeal of Florida | Filed: Sep 29, 2010 | Docket: 2542540
Cited 2 times | Published
construed to effect the purposes stated in section 631.51. Section 631.51(1) states that a purpose of the Act
241 So. 2d 698
District Court of Appeal of Florida | Filed: Oct 9, 1970 | Docket: 1455548
Cited 2 times | Published
assets within Florida could be preserved.
Section 631.051
"The commissioner may apply to the court for
202 So. 3d 396, 41 Fla. L. Weekly Supp. 473, 2016 Fla. LEXIS 2327
Supreme Court of Florida | Filed: Oct 20, 2016 | Docket: 4481081
Cited 1 times | Published
the cost of such protection among insurers.
§ 631.51, Fla. Stat. (2011);
see
631.57, Fla
177 So. 3d 56
District Court of Appeal of Florida | Filed: Oct 20, 2015 | Docket: 2991532
Cited 1 times | Published
the insolvency of the insurer.
See
§ 631.51(1).”
Jones,
908 So.2d at 454. The court
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
corrective plans with which providers must comply.6
Section 631.051, referred to above in subsection 651.114(5)
44 So. 3d 1191, 2010 Fla. App. LEXIS 14469
District Court of Appeal of Florida | Filed: Sep 29, 2010 | Docket: 60295548
Cited 1 times | Published
construed to effect the purposes stated in section 631.51. Section 631.51(1) states that a purpose of the Act
979 So. 2d 964, 2008 WL 183501
District Court of Appeal of Florida | Filed: Jan 23, 2008 | Docket: 1714377
Cited 1 times | Published
policyholders because of the insolvency of an insurer." § 631.51(1), Fla. Stat. (2001); see also Jones v. Fla.
555 So. 2d 1262, 1989 WL 151453
District Court of Appeal of Florida | Filed: Jan 26, 1990 | Docket: 1724707
Cited 1 times | Published
certain claims on behalf of insolvent insurers. § 631.51, Fla. Stat. (1983). The recovery guaranteed under
District Court of Appeal of Florida | Filed: Sep 30, 2020 | Docket: 18488448
Published
insureds for covered
claims, not all claims. See § 631.51(1); Jones v. Fla. Ins. Guar. Ass'n, 908 So
District Court of Appeal of Florida | Filed: Oct 11, 2019 | Docket: 16322819
Published
because of
the insolvency of an insurer." § 631.51(1). The courts have been directed by the
Legislature
210 So. 3d 260, 2017 WL 603317, 2017 Fla. App. LEXIS 1958
District Court of Appeal of Florida | Filed: Feb 15, 2017 | Docket: 4585348
Published
policyholders because of the insolvency of an insurer,” § 631.51(1). The Act expressly states that it is to be
159 So. 3d 945, 2015 Fla. App. LEXIS 3576, 2015 WL 1084929
District Court of Appeal of Florida | Filed: Mar 12, 2015 | Docket: 60246713
Published
Regulation.” § 20.121(3)(a)l., Fla. Stat. See also § 631.051, Fla. Stat. (setting forth the grounds upon which
106 So. 3d 1, 2012 WL 6049111, 2012 Fla. App. LEXIS 20814
District Court of Appeal of Florida | Filed: Dec 5, 2012 | Docket: 60228068
Published
631.55(1) mandated the creation of FIGA, and section 631.51(1) provides that its purpose is to ‘[pjrovide
46 So. 3d 1039, 2010 Fla. App. LEXIS 14025, 2010 WL 3655818
District Court of Appeal of Florida | Filed: Sep 22, 2010 | Docket: 60296107
Published
631.55(1) mandated the creation of FIGA, and section 631.51(1) provides that its purpose is to “[p]rovide
847 So. 2d 1020, 2003 Fla. App. LEXIS 6538, 28 Fla. L. Weekly Fed. D 1142
District Court of Appeal of Florida | Filed: May 6, 2003 | Docket: 64823417
Published
because of the insolvency of an insurer.” See § 631.51(1), Fla. Stat. (1995). The Association is a statutorily-created
764 So. 2d 705, 2000 Fla. App. LEXIS 7514, 2000 WL 775590
District Court of Appeal of Florida | Filed: Jun 19, 2000 | Docket: 64799406
Published
policyholders because of the insolvency of an insurer.” § 631.51(1), Fla. Stat. (1991). Self-insur-*707anee was
654 So. 2d 232, 1995 Fla. App. LEXIS 4358, 1995 WL 293968
District Court of Appeal of Florida | Filed: Apr 25, 1995 | Docket: 64755885
Published
other authority for the order, we reverse.
Section 631.051 authorizes the department upon specified grounds
583 So. 2d 372, 1991 Fla. App. LEXIS 6686, 1991 WL 120798
District Court of Appeal of Florida | Filed: Jul 10, 1991 | Docket: 64660506
Published
the cost of such protection among insurers.
Section 631.51, Fla.Stat. (1985). However, appellee’s obligations
411 So. 2d 269, 1982 Fla. App. LEXIS 19450
District Court of Appeal of Florida | Filed: Mar 11, 1982 | Docket: 64588623
Published
because of the insolvency of a member insurer. See § 631.51, Florida Statutes. FIGA was created in order to
