Florida Statutes

Fla. Stat. § 631.281 (2025)

Offsets.

✓ 2025 Florida Statutes — current through the 2025 Regular Session

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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.

Notes of Decisions

Cited in 8 cases (1 in the last 5 years), 1987–2021 · leading case: Barnett Bank v. State, Dept. of Ins., 507 So. 2d 142 (Fla. 1st DCA 1987).

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Barnett Bank v. State, Dept. of Ins., 507 So. 2d 142 (Fla. 1st DCA 1987). · cites it 13× “Barnett Bank filed a petition in the ancillary receivership proceedings against Midland Insurance Company (Midland), an insolvent insurer, seeking court approval of a setoff under section 631.281, Florida Statutes (1985).”

Sunset Com. Bk. v. Fla. Dept. of Ins., 509 So. 2d 366 (Fla. 1st DCA 1987). · cites it 10× “We find that Sunset Commercial Bank's offset claim under section 631.281, Florida Statutes, should have been allowed, and we reverse the order appealed.”

Imagine Ins. Co., Ltd. v. State Ex Rel. Dept. of Fin. Servs., 999 So. 2d 693 (Fla. 1st DCA 2008). · cites it 2× “Section 631.281, Florida Statutes (2004), addresses offsets and provides: (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…”

State Dep't of Fin. Servs. v. Branch Banking & Trust Co., 40 So. 3d 829 (Fla. 1st DCA 2010). · cites it 6× “The Department of Financial Services (“DFS”), as the receiver of First Commercial Insurance Company (“FCI”) and First Commercial Transportation and Property Insurance Company (“FCT”), seeks review of two non-final orders holding that Branch Banking and Trust Company (“the bank”)…”

Nova Ins. Grp. v. Dept. of Ins., 606 So. 2d 429 (Fla. 1st DCA 1992). · cites it 2× “The *433 remainder of subsection (1) addresses situations where the person in possession of the insurer's property seeks to retain possession because he has some claim to the property of his own.”

Kreidler v. Statewide Gen. Ins. Agency, Inc., 329 P.3d 928 (Wash. Ct. App. 2014). “290(1) allows “mutual debts or mutual credits” to be “set off” such that the payer will be responsible only for the balance.”

Richardson v. United States (Fed. Cl. 2021). “Thus, an offset statute is inherently “consistent with [the priority statute] because [the priority statute], by creating priorities of claims, also prefers some creditors over others.”

Florida Indep. Auto. Dealers Ass'n Health & Welfare Benefit Plan ex rel. Reinecke Agency, Inc. v. Fid. Sec. Life Ins., 636 So. 2d 37 (Fla. 1st DCA 1994). · cites it 2× “The stay also specifically prohibited set off or offset of any debt owing to FIADA except offsets as provided in section 631.281, Florida Statutes. On May 15,1990 Fidelity signed a notice of dismissal of its counterclaim against FIADA.”

— 631.281(1) — 1 case

Barnett Bank v. State, Dept. of Ins., 507 So. 2d 142 (Fla. 1st DCA 1987). “Barnett Bank filed a petition in the ancillary receivership proceedings against Midland Insurance Company (Midland), an insolvent insurer, seeking court approval of a setoff under section 631.281, Florida Statutes (1985).”

— 631.281(2)(a) — 1 case

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