Florida Statute 631.141 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXVII
INSURANCE

Chapter 631
INSURER INSOLVENCY; GUARANTY OF PAYMENT

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F.S. 631.141

631.141 Conduct of delinquency proceeding; domestic and alien insurers.—

(1) Whenever under this chapter a receiver is to be appointed in a delinquency proceeding for a domestic or alien insurer, the court shall appoint the department as such receiver. The court shall order the department forthwith to take possession of the assets of the insurer and to administer the same under the orders of the court.

(2) As a domiciliary receiver, the department is vested by operation of law with the title to all of the property, contracts, and rights of action, and all of the books and records, of the insurer, wherever located, as of the date of entry of the order directing it to rehabilitate or liquidate a domestic insurer or to liquidate the United States branch of an alien insurer domiciled in this state; and it shall have the right to recover the same and reduce the same to possession; except that ancillary receivers in reciprocal states shall have, as to assets located in their respective states, the rights and powers which are herein prescribed for ancillary receivers appointed in this state as to assets located in this state.

(3) The receiver may assume or reject any executory contract or unexpired lease of the insurer.

(4) The filing or recording of the order directing possession to be taken, or a certified copy thereof, in any office where instruments affecting title to property are required to be filed or recorded imparts the same notice as would be imparted by a deed, bill of sale, or other evidence of title duly filed or recorded.

(5) The department as domiciliary receiver is responsible for the proper administration of all assets coming into its possession or control. The court may at any time require a bond from it or its agents if deemed desirable for the protection of such assets.

(6) Upon taking possession of the assets of an insurer, the domiciliary receiver shall, subject to the direction of the court, immediately proceed to conduct the business of the insurer or to take such steps as are authorized by this chapter for the purpose of rehabilitating, liquidating, or conserving the affairs or assets of the insurer.

(7) In order to preserve as much as possible the right and interest of the policyholders whose insurance policies or similar contracts are affected by the receivership proceedings, the department as a domiciliary receiver may:

(a) Use the property of the estate of the insurer to transfer the insurer’s book of business, policies, or similar contracts of coverage, in whole or in part, to a solvent assuming insurer or insurers.

(b) Notwithstanding s. 631.195, share records of the insurer with the prospective solvent assuming insurer or insurers, but only to the extent necessary to undertake due diligence for a transfer contemplated under this section.

(8) The department as domiciliary receiver may pay any expenses under contracts, leases, employment agreements, or other arrangements entered into by the insurer before receivership as the department deems necessary for the purposes of this chapter. The department is not required to pay any such expenses that it determines are not necessary and may reject any contract pursuant to subsection (3).

(9) The department may assert all rights belonging to third parties, including, but not limited to, policyholders, creditors, and other claimants, except to the extent an individual claim is personal and unique to the claimant and could not inure to the benefit of the estate or to policyholders, creditors, or other claimants.

(10)(a) In connection with a delinquency proceeding, the department may appoint one or more special agents to act for it, and it may employ such counsel, clerks, and assistants as it deems necessary. The compensation of the special agents, counsel, clerks, or assistants and all expenses of taking possession of the insurer and of conducting the proceeding shall be fixed by the receiver, subject to the approval of the court, and shall be paid out of the funds or assets of the insurer. Such expenses are administrative expenses and are recoverable by the receiver in any actions in which the receiver is authorized or entitled to recover its administrative expenses. Within the limits of duties imposed upon them, special agents shall possess all the powers given to and, in the exercise of those powers, shall be subject to all duties imposed upon the receiver with respect to such proceeding.

(b) In the event that initiation of delinquency proceedings does not result in appointment of the department as receiver, or in the event that the funds or assets of an insurer for which the department is appointed as receiver are insufficient to cover the cost of compensation to special agents, counsel, clerks, or assistants and all expenses of taking, or attempting to take, possession of the insurer, and of conducting the proceeding, there is appropriated, upon approval of the Chief Financial Officer and of the Legislative Budget Commission pursuant to chapter 216, from the Insurance Regulation Trust Fund to the Division of Rehabilitation and Liquidation a sum that is sufficient to cover the unreimbursed costs.

(11) The department as domiciliary receiver may take such action as it deems necessary or appropriate to reform and revitalize the insurer. The department shall have all the powers of the directors, officers, and managers, whose authority shall be suspended, except as they are redelegated by the receiver. The receiver shall have full power to direct and manage the affairs of the insurer, to hire and discharge employees, and to deal with the property and business of the insurer. In the event of the liquidation of an insurer domiciled in this state, and notwithstanding any provision of chapter 605, chapter 607, chapter 617, chapter 620, or chapter 621, all officers, directors, and managers of the insurer are permanently discharged and have no further authority of any kind over the affairs or assets of the insurer, except as may be redelegated by the department.

(12) If the department as domiciliary receiver determines that reorganization, consolidation, conversion, reinsurance, merger, or other transformation of the insurer is appropriate, it shall prepare a plan to effect such changes. Upon application of the receiver for approval of the plan, and after such notice and hearings as the court may prescribe, the court may either approve or disapprove the plan proposed or may modify it and approve it as modified. Any plan approved under this section must be, in the judgment of the court, fair and equitable to all parties concerned. If the plan is approved, the receiver shall carry out the plan.

(13) Records created by the entity in receivership shall be disposed of in accordance with the order of the court at such time as the receiver determines that the records are not needed for the administration of the estate.

History.—s. 730, ch. 59-205; ss. 13, 35, ch. 69-106; s. 809(1st), ch. 82-243; s. 8, ch. 83-38; ss. 85, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 9, ch. 2002-25; s. 10, ch. 2003-267; s. 31, ch. 2004-374; s. 56, ch. 2005-152; s. 5, ch. 2017-143; s. 38, ch. 2023-144.

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Amendments to 631.141

Arrestable Offenses / Crimes under Fla. Stat. 631.141

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

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 631.141.

Annotations, Discussions, Cases:

Cases Citing Statute 631.141

Total Results: 14

Freeman v. Dean Witter Reynolds, Inc.

Court: Fla. Dist. Ct. App. | Date Filed: 2003-12-19T00:00:00-08:00

Citation: 865 So. 2d 543

Snippet: of third parties including policyholders. See § 631.141(6), Fla. Stat. (2002). Assuming the legislature

Chase Bank of Texas Natl. Ass'n v. State Dept. of Insurance

Court: Fla. Dist. Ct. App. | Date Filed: 2003-11-05T23:53:00-08:00

Citation: 860 So. 2d 472

Snippet: section 631.141 in the course of the liquidation proceeding. Chase argues that section 631.141 does not… and alien insurers provides in material part: 631.141 Conduct of delinquency proceeding; domestic and…policyholders, creditors, or other claimants. § 631.141(6), Fla. Stat. (2002). As we have previously explained…refuted by the language of the statute. Section 631.141 is titled "Conduct of delinquency proceeding

Super Transport, Inc. v. Florida Department of Insurance

Court: Fla. Dist. Ct. App. | Date Filed: 2001-10-02T00:00:00-07:00

Citation: 799 So. 2d 286, 2001 Fla. App. LEXIS 13728

Snippet: assessment the costs of collection.1 Id. Section 631.141(6) provides for the Receiver’s employment of attorneys…Receiver’s attorney fee agreement required by section 631.141(6), and is not required to adopt the lodestar approach

Haag v. State, Department of Insurance

Court: Fla. Dist. Ct. App. | Date Filed: 1997-08-07T00:00:00-07:00

Citation: 699 So. 2d 738, 1997 Fla. App. LEXIS 9036, 1997 WL 441234

Snippet: approved the fee agreements pursuant to section 631.141(6), Florida Statutes (1996). We affirm the second… at bar, in contrast, is controlled by section 631.141(6), which provides that the Department of Insurance… to disregard an agreement required by section 631.141(6) and adopt instead the lodestar approach. AFFIRMED

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: the Department pursuant to sections 631.111 and 631.141, Florida Statutes. [2] The appellants asserted

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: the Department pursuant to sections 631.111 and 631.141, Florida Statutes. . The appellants asserted

Lidsky v. Florida Department of Insurance

Court: Fla. Dist. Ct. App. | Date Filed: 1994-09-14T00:00:00-07:00

Citation: 643 So. 2d 631, 1994 Fla. App. LEXIS 8785

Snippet: title to the insurer’s assets (see subsections 631.141(1) and (2)), the legislature has targeted for closer

STATE DEPT. OF INS. v. Blackburn

Court: Fla. Dist. Ct. App. | Date Filed: 1994-03-08T23:53:00-08:00

Citation: 633 So. 2d 521

Snippet: the entity in receivership pursuant to section 631.141(2), Florida Statutes (1991). A receiver is also

Florida Independent Automobile Dealers Ass'n Health & Welfare Benefit Plan ex rel. Reinecke Agency, Inc. v. Fidelity Security Life Ins.

Court: Fla. Dist. Ct. App. | Date Filed: 1994-01-21T00:00:00-08:00

Citation: 636 So. 2d 37, 1994 Fla. App. LEXIS 184

Snippet: FIADA “pursuant to section 631.111 and section 631.141, Florida Statutes, including but not limited to

In re the Receivership of Syndicate Two, Inc.

Court: Fla. Dist. Ct. App. | Date Filed: 1989-02-14T00:00:00-08:00

Citation: 538 So. 2d 945, 14 Fla. L. Weekly 471, 1989 Fla. App. LEXIS 807

Snippet: the same and reduce the same to possession_” § 631.141(2), Fla.Stat. (1987) (emphasis added). The law

In re the Receivership of Southland Insurance Co.

Court: Fla. Dist. Ct. App. | Date Filed: 1988-12-19T00:00:00-08:00

Citation: 535 So. 2d 648, 13 Fla. L. Weekly 2755, 1988 Fla. App. LEXIS 5572, 1988 WL 134435

Snippet: imposed upon it by Chapter 631, specifically section 631.141.1 The trial court denied South-land’s motions. …or conserve the assets of the insurer, section 631.141(5), and to take such steps as it deems necessary…to reform and revitalize the insurer.” Section 631.141(7). . The order appointing the Department the

Sunset Com. Bk. v. Fla. Dept. of Ins.

Court: Fla. Dist. Ct. App. | Date Filed: 1987-06-17T00:53:00-07:00

Citation: 509 So. 2d 366

Snippet: Commercial Bank for the obligor. See sections 631.141(1) and (2), Florida Statutes. At the time of the

FLORIDA INS. GUARANTY ASSOC., INC. v. State Ex Rel. Department of Insurance

Court: Fla. Dist. Ct. App. | Date Filed: 1981-06-30T00:53:00-07:00

Citation: 400 So. 2d 813

Snippet: by the domiciliary state, we note that Section 631.141 vests full title in the Florida receiver of an …page 431. See Table of Reciprocal States, Section 631.141, F.S.A. 1981 pocket part. [2] See O'Malley

Springer v. Colburn

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

Citation: 162 So. 2d 513

Snippet: Fla. Stat. §§ 631.011(2-3), 631.031, 631.041, 631.141-631.211 (1961), F.S.A. [3] 153 So.2d 731 (Fla.