Florida Statute 631.281 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXVII
INSURANCE

Chapter 631
INSURER INSOLVENCY; GUARANTY OF PAYMENT

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F.S. 631.281

631.281 Offsets.—

(1) In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter, such credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection (2).

(2) No offset shall be allowed in favor of any such person where:

(a) The obligation of the insurer to such person would not at the date of the entry of any liquidation order or otherwise, as provided in s. 631.251, entitle her or him to share as a claimant in the assets of the insurer. Any such obligation must be fully vested and mature as of the date of the order of liquidation and in no way contingent upon any future event or condition precedent to allow an offset. In the case of a reinsurance agreement, the insurer’s obligation must be incurred as of the date of the order of liquidation to allow an offset.

(b) The obligation of the insurer to such person was purchased by or transferred to such person with a view of its being used as an offset.

(c) The obligation of such person is to pay an assessment levied against the members of a mutual insurer, or against the subscribers of a reciprocal insurer, or is to pay a balance upon the subscription to the capital stock of a stock insurer.

(3) An agent who voluntarily pays the unearned portion of a premium to a policyholder shall succeed to the interest of the policyholder as an assignee of the policyholder’s claim against the receiver for the unearned portion of the premium as of the effective date of cancellation of the policy.

(4) No claim of offset shall operate to create a secured claim.

History.—s. 744, ch. 59-205; s. 809(1st), ch. 82-243; s. 22, ch. 83-38; s. 41, ch. 88-166; s. 7, ch. 90-248; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 406, ch. 97-102.

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Amendments to 631.281

Annotations, Discussions, Cases:

Cases Citing Statute 631.281

Total Results: 6

Imagine Ins. Co., Ltd. v. State Ex Rel. Dept. of Financial Services

999 So. 2d 693, 2008 WL 5220645

District Court of Appeal of Florida | Filed: Dec 16, 2008 | Docket: 1514704

Cited 8 times | Published

person claiming offset. (emphasis added). Section 631.281, Florida Statutes (2004), addresses offsets

Nova Ins. Group v. Dept. of Ins.

606 So. 2d 429, 1992 Fla. App. LEXIS 9768, 1992 WL 221534

District Court of Appeal of Florida | Filed: Sep 11, 1992 | Docket: 135999

Cited 6 times | Published

154(1)'s reference to the offset provisions of section 631.281 provides an example of just such a situation

Barnett Bank v. State, Dept. of Ins.

507 So. 2d 142, 12 Fla. L. Weekly 1146

District Court of Appeal of Florida | Filed: May 5, 1987 | Docket: 459806

Cited 5 times | Published

seeking court approval of a setoff under section 631.281, Florida Statutes (1985). The trial court denied

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

509 So. 2d 366, 12 Fla. L. Weekly 1494

District Court of Appeal of Florida | Filed: Jun 17, 1987 | Docket: 1361758

Cited 3 times | Published

Sunset Commercial Bank's offset claim under section 631.281, Florida Statutes, should have been allowed

State Department of Financial Services v. Branch Banking & Trust Co.

40 So. 3d 829, 2010 Fla. App. LEXIS 10147, 2010 WL 2732606

District Court of Appeal of Florida | Filed: Jul 13, 2010 | Docket: 1667107

Cited 1 times | Published

bank") was entitled to offsets pursuant to section 631.281, Florida Statutes (2009). In the two orders

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

636 So. 2d 37, 1994 Fla. App. LEXIS 184, 19 Fla. L. Weekly Fed. D 190

District Court of Appeal of Florida | Filed: Jan 21, 1994 | Docket: 64748121

Published

owing to FIADA except offsets as provided in section 631.281, Florida Statutes. On May 15,1990 Fidelity