Florida Statute 631.399 - 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. 631.399

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

Annotations, Discussions, Cases:

Cases Citing Statute 631.399

Total Results: 3

Florida Department of Insurance v. Blackburn (In Re Blackburn)

209 B.R. 4, 10 Fla. L. Weekly Fed. B 343, 1997 Bankr. LEXIS 694, 1997 WL 274785

United States Bankruptcy Court, M.D. Florida | Filed: May 20, 1997 | Docket: 1431353

Cited 16 times | Published

person be an "affiliate" within the meaning of Section 631.399, Florida Statutes? In Count III of the GSL

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

902 So. 2d 833, 2005 WL 723866

District Court of Appeal of Florida | Filed: Mar 31, 2005 | Docket: 1257191

Cited 3 times | Published

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

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

478 So. 2d 1105, 10 Fla. L. Weekly 2471, 1985 Fla. App. LEXIS 16607

District Court of Appeal of Florida | Filed: Nov 5, 1985 | Docket: 1484396

Cited 3 times | Published

entered under the authority of the provisions of section 631.399, Florida Statutes, in response to the Department's