Florida Statute 631.399 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXVII
INSURANCE

Chapter 631
INSURER INSOLVENCY; GUARANTY OF PAYMENT

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F.S. 631.399

631.399 Receiver’s right to recover distributions made to affiliate.—

(1) If an order for liquidation or rehabilitation of an insurer domiciled in this state has been entered, the receiver appointed under such order has a right to recover on behalf of the insurer, from any affiliate, the amount or value of distributions, other than stock dividends paid by the insurer on its capital stock, made at any time during the 5 years preceding the petition for liquidation or rehabilitation, subject to the limitations of subsections (2), (3), and (4).

(2) The distributions shall be recoverable unless the affiliate shows that the distributions were lawful and reasonable and that the insurer did not know and could not reasonably have known that the distributions might adversely affect the ability of the insurer to fulfill its contractual obligations.

(3) Any affiliate at the time the distributions were made is liable up to the amount or value of distributions it received.

(4) The maximum amount recoverable under this section is the amount needed in excess of all other available assets of the insolvent insurer to pay the contractual obligations of the insolvent insurer.

(5) If any affiliate liable under subsection (3) is insolvent, all of its affiliates are jointly and severally liable for any resulting deficiency in the amount recovered from the insolvent affiliate.

History.—s. 13, ch. 79-189; s. 809(1st), ch. 82-243; s. 29, ch. 83-38; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

Note.—Former s. 631.732.

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Amendments to 631.399

Arrestable Offenses / Crimes under Fla. Stat. 631.399

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

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 631.399.

Annotations, Discussions, Cases:

Cases Citing Statute 631.399

Total Results: 6

Ocean Bank v. STATE, DEPT. OF FIN. SERVICES

Court: Fla. Dist. Ct. App. | Date Filed: 2005-03-31T00:00:00-08:00

Citation: 902 So. 2d 833, 2005 WL 723866

Snippet: asset, undiminished by the encumbrance. See § 631.399, Fla. Stat. (2004) ("Receiver's right

Snyder v. Douglas

Court: Fla. Dist. Ct. App. | Date Filed: 1994-12-08T23:53:00-08:00

Citation: 647 So. 2d 275

Snippet: and PATTERSON, J., concur. NOTES [1] §§ 631.001-631.399, Fla. Stat. (1993). [2] §§ 631.50-631.705, Fla

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: Rehabilitation and Liquidation Act.” §§ 631.001-631.399, Fla. Stat. (1993). The partial summary judgment

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: XVI assert claims under sections 631.261(1) and 631.399, Florida Statutes (1991). Counts X and XI demand…claims under sections 631.261(1), 631.262(2) and 631.399 that belong exclusively to it. These claims can

Nova Ins. Group v. Dept. of Ins.

Court: Fla. Dist. Ct. App. | Date Filed: 1992-09-11T00:53:00-07:00

Citation: 606 So. 2d 429

Snippet: Rehabilitation and Liquidation Act, sections 631.001 to 631.399, Florida Statutes (1989). In the challenged order

Capitol Fidelity Life Ins. Co. v. STATE EX REL., DEPT. OF INSU.

Court: Fla. Dist. Ct. App. | Date Filed: 1985-11-04T23:53:00-08:00

Citation: 478 So. 2d 1105

Snippet: under the authority of the provisions of section 631.399, Florida Statutes, in response to the Department…affiliates of Capitol Fidelity Life under section 631.399, Florida Statutes. However, the merits of the &…the "affiliate" question under section 631.399 is in the trial court. The parties are not precluded