Florida Statute 631.54 - 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. 631.54

631.54 Definitions.—As used in this part:

(1) “Account” means one of the accounts created by s. 631.55.

(2) “Assessment year” means the 12-month period, which may begin on the first day of any calendar quarter, whether January 1, April 1, July 1, or October 1, as specified in an order issued by the office directing insurers to pay an assessment to the association.

(3) “Association” means the Florida Insurance Guaranty Association, Incorporated.

(4) “Covered claim” means an unpaid claim, including one of unearned premiums, which arises out of, and is within the coverage, and not in excess of, the applicable limits of an insurance policy to which this part applies, issued by an insurer, if such insurer becomes an insolvent insurer and the claimant or insured is a resident of this state at the time of the insured event or the property from which the claim arises is permanently located in this state. For entities other than individuals, the residence of a claimant, insured, or policyholder is the state in which the entity’s principal place of business is located at the time of the insured event. The term does not include:

(a) Any amount due any reinsurer, insurer, insurance pool, or underwriting association, sought directly or indirectly through a third party, as subrogation, contribution, indemnification, or otherwise;

(b) Any claim that would otherwise be a covered claim under this part that has been rejected or denied by any other state guaranty fund based upon that state’s statutory exclusions, including, but not limited to, those based on coverage, policy type, or an insured’s net worth. Member insurers have no right of subrogation, contribution, indemnification, or otherwise, sought directly or indirectly through a third party, against the insured of any insolvent member; or

(c) Any amount payable for a sinkhole loss other than testing deemed appropriate by the association or payable for the actual repair of the loss, except that the association may not pay for attorney’s fees or public adjuster’s fees in connection with a sinkhole loss or pay the policyholder. The association may pay for actual repairs to the property but is not liable for amounts in excess of policy limits.

(5) “Direct written premiums” means direct gross premiums written in this state on insurance policies to which this part applies, less return premiums thereon on such direct business. The term does not include premiums on contracts between insurers or reinsurers.

(6) “Expenses in handling claims” means allocated and unallocated expenses, including, but not limited to, general administrative expenses and those expenses which relate to the investigation, adjustment, defense, or settlement of specific claims under, or arising out of, a specific policy.

(7) “Homeowner’s insurance” means personal lines residential property insurance coverage that consists of the type of coverage provided under homeowner’s, dwelling, and similar policies for repair or replacement of the insured structure and contents, which policies are written directly to the individual homeowner. Residential coverage for personal lines as set forth in this section includes policies that provide coverage for particular perils such as windstorm and hurricane coverage but excludes all coverage for mobile homes, renter’s insurance, or tenant’s coverage. The term “homeowner’s insurance” excludes commercial residential policies covering condominium associations or homeowners’ associations, which associations have a responsibility to provide insurance coverage on residential units within the association, and also excludes coverage for the common elements of a homeowners’ association.

(8) “Insolvent insurer” means a member insurer authorized to transact insurance in this state, either at the time the policy was issued or when the insured event occurred, and against which an order of liquidation with a finding of insolvency has been entered by a court of competent jurisdiction if such order has become final by the exhaustion of appellate review.

(9) “Member insurer” means any person who writes any kind of insurance to which this part applies under s. 631.52, including the exchange of reciprocal or interinsurance contracts, and is licensed to transact insurance in this state.

(10) “Person” means individuals, children, firms, associations, joint ventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations, and all other groups or combinations.

History.—s. 5, ch. 70-20; ss. 2, 4, ch. 77-227; s. 1, ch. 79-55; s. 809(1st), ch. 82-243; s. 30, ch. 83-38; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 17, ch. 97-262; s. 15, ch. 2002-25; s. 1352, ch. 2003-261; s. 1, ch. 2004-89; s. 37, ch. 2004-374; s. 32, ch. 2006-12; s. 2, ch. 2010-49; s. 30, ch. 2011-39; s. 8, ch. 2011-226; s. 1, ch. 2015-65; s. 2, ch. 2020-54; s. 48, ch. 2021-51.

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F.S. 631.54 on CourtListener

Amendments to 631.54

Annotations, Discussions, Cases:

Cases Citing Statute 631.54

Total Results: 55

Jones v. Florida Ins. Guar. Ass'n, Inc.

908 So. 2d 435, 2005 WL 1580606

Supreme Court of Florida | Filed: Jul 7, 2005 | Docket: 1724747

Cited 103 times | Published

applicable limits of an insurance policy. . . ." § 631.54(3). It is well settled that an insurer's duty

Florida Insurance Guaranty Ass'n v. Devon Neighborhood Ass'n

67 So. 3d 187, 36 Fla. L. Weekly Supp. 311, 2011 Fla. LEXIS 1526, 2011 WL 2566399

Supreme Court of Florida | Filed: Jun 30, 2011 | Docket: 434989

Cited 48 times | Published

Guar. Ass'n, 908 So.2d 435, 442 (Fla. 2005); see § 631.54(3), Fla. Stat. (2010) (defining "covered claim");

Zinke-Smith, Inc. v. FLA. INSURANCE GUAR. ASS'N, INC.

304 So. 2d 507

District Court of Appeal of Florida | Filed: Dec 13, 1974 | Docket: 1437907

Cited 26 times | Published

definition of "covered claim" as set out in Section 631.54(4), F.S., the last sentence of which reads

Figa, Formerly the American Druggists' Insurance Company, and Ranger Insurance Company v. R.V.M.P. Corporation, D/B/A b.j.'s Seaside Restaurant

874 F.2d 1528, 13 Fed. R. Serv. 3d 1027, 1989 U.S. App. LEXIS 8453

Court of Appeals for the Eleventh Circuit | Filed: Jun 13, 1989 | Docket: 2142251

Cited 15 times | Published

those cases was for a “covered claim,” Fla.Stat. § 631.54(3), which FIGA is obligated to pay under

Fernandez v. Florida Ins. Guaranty Ass'n

383 So. 2d 974, 1980 Fla. App. LEXIS 16736

District Court of Appeal of Florida | Filed: May 27, 1980 | Docket: 457563

Cited 15 times | Published

state a bad faith-excess cause of action. [4] § 631.54(4), Fla. Stat. (1979) provides: (4) `Covered

Florida Insurance Guaranty Ass'n v. Branco

148 So. 3d 488, 2014 Fla. App. LEXIS 14602, 39 Fla. L. Weekly Fed. D 2020

District Court of Appeal of Florida | Filed: Sep 19, 2014 | Docket: 60243527

Cited 14 times | Published

pay the insured directly, in contravention of section 631.54(3)(c); having to pay more than the "covered

Cleary Brothers Const. Co. v. Upper Keys Marine Const., Inc.

526 So. 2d 116, 1988 Fla. App. LEXIS 1409, 1988 WL 31681

District Court of Appeal of Florida | Filed: Apr 12, 1988 | Docket: 1273049

Cited 13 times | Published

of Upper Keys, basing its conclusions upon section 631.54(3), Florida Statutes (1979), which prohibits

Federated Rural Electric Insurance Exchange v. R.D. Moody & Associates, Inc.

468 F.3d 1322, 2006 U.S. App. LEXIS 27160, 2006 WL 3091626

Court of Appeals for the Eleventh Circuit | Filed: Nov 2, 2006 | Docket: 2040659

Cited 12 times | Published

and insolvent, Fla. Stat. § 631.54 bars Federated’s claims. Section 631.54(3)(b) provides that “[m]ember

INS. GUARANTY ASS'N, INC. v. All the Way With Bill Vernay, Inc.

864 So. 2d 1126, 2003 WL 23094682

District Court of Appeal of Florida | Filed: Dec 31, 2003 | Docket: 2516360

Cited 12 times | Published

a covered claim as defined by chapter 631. Section 631.54(3) defines covered claim: "Covered claim" means

Travelers Ins. Co. v. Sitko

496 So. 2d 920, 11 Fla. L. Weekly 2260

District Court of Appeal of Florida | Filed: Oct 27, 1986 | Docket: 427938

Cited 10 times | Published

determine whether Travelers is precluded by section 631.54(3), Florida Statutes (1983), from recovering

Petty v. Florida Insurance Guaranty Ass'n

80 So. 3d 313, 37 Fla. L. Weekly Supp. 34, 2012 Fla. LEXIS 72, 2012 WL 143605

Supreme Court of Florida | Filed: Jan 19, 2012 | Docket: 60305694

Cited 8 times | Published

insurance policy, it is not a covered claim under section 631.54(3), Florida Statutes (2008), that the Florida

Florida Ins. Guar. Ass'n, Inc. v. Cole

573 So. 2d 868, 1990 WL 177724

District Court of Appeal of Florida | Filed: Nov 14, 1990 | Docket: 1518699

Cited 8 times | Published

Integrity's "covered claims," as defined by section 631.54(3),[2] Florida Statutes (1985). Section 631

Florida Ins. Guar. Ass'n v. Gustinger

390 So. 2d 420

District Court of Appeal of Florida | Filed: Nov 12, 1980 | Docket: 1532311

Cited 7 times | Published

"covered claims" for which FIGA is responsible. Section 631.54(4), Florida Statutes (1979) provides: (4) `Covered

Florida Insurance Guaranty Ass'n v. Bernard

140 So. 3d 1023, 2014 WL 1921745, 2014 Fla. App. LEXIS 7160

District Court of Appeal of Florida | Filed: May 14, 2014 | Docket: 60241342

Cited 6 times | Published

by the 2010 definition of “covered claim” in section 631.54(3), Florida Statutes, rather than the more

Williams v. FLORIDA INS. GUAR. ASS'N

549 So. 2d 253, 1989 WL 111530

District Court of Appeal of Florida | Filed: Sep 28, 1989 | Docket: 1719656

Cited 6 times | Published

insurance policy to which this part applies. .. . § 631.54(3), Fla. Stat. (1983). Further, FIGA's scope of

FLA. INS. GUAR. ASSOCIATION v. Price

450 So. 2d 596

District Court of Appeal of Florida | Filed: May 25, 1984 | Docket: 1432900

Cited 6 times | Published

were "covered claims" within the meaning of section 631.54(4), Florida Statutes (1981). Kenilworth Insurance

FLORIDA INS. GUARANTY ASS'N, INC. v. Dolan

355 So. 2d 141, 1978 Fla. App. LEXIS 15295

District Court of Appeal of Florida | Filed: Feb 7, 1978 | Docket: 1360742

Cited 6 times | Published

policyholders because of the insolvency of an insurer;" § 631.54(4) provides: "`Covered claim' means an unpaid

BOARD OF COUNTY COMM'RS v. Sawyer

620 So. 2d 757, 1993 WL 184570

Supreme Court of Florida | Filed: Jun 3, 1993 | Docket: 1387569

Cited 5 times | Published

assessment for investigative and legal costs); § 631.54(5), Fla. Stat. (1989) (State's expenses in processing

McKenzie Tank Lines, Inc. v. Empire Gas Corp.

538 So. 2d 482, 1989 WL 5672

District Court of Appeal of Florida | Filed: Jan 27, 1989 | Docket: 1517085

Cited 5 times | Published

claim, basing its motion on the provisions of section 631.54(3), Florida Statutes (1985), which states in

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

400 So. 2d 813

District Court of Appeal of Florida | Filed: Jun 30, 1981 | Docket: 1677030

Cited 5 times | Published

the Department against all "member insurers" (Section 631.54(6)) which are then remitted to and administered

Cordani v. Roulis

395 So. 2d 1276

District Court of Appeal of Florida | Filed: Apr 1, 1981 | Docket: 1317709

Cited 5 times | Published

question of whether a solvent member insurer under Section 631.54(4), Florida Statutes (1977) has a right of

Florida Insurance Guaranty Ass'n v. Olympus Ass'n

34 So. 3d 791, 2010 Fla. App. LEXIS 6941, 2010 WL 1979242

District Court of Appeal of Florida | Filed: May 19, 2010 | Docket: 1131175

Cited 4 times | Published

if such insurer becomes an insolvent insurer." § 631.54(3), Fla. Stat. (2008). Appraisal clauses are preferred

Sandrew Const. v. DeFourny

515 So. 2d 1351, 1987 WL 1805

District Court of Appeal of Florida | Filed: Nov 25, 1987 | Docket: 1467310

Cited 3 times | Published

as not being a "covered claim" as defined by section 631.54(3), Florida Statutes (1981). DeFourny subsequently

Florida Insurance Guaranty Association, Inc. v. Mendoza and Llanes

193 So. 3d 940, 2016 WL 1445424, 2016 Fla. App. LEXIS 5583

District Court of Appeal of Florida | Filed: Apr 13, 2016 | Docket: 3053145

Cited 2 times | Published

“covered claims,” as that term is defined in section 631.54(3) of the-Florida Statutes. On December

Florida Insurance Guaranty Ass'n v. Hunnewell

173 So. 3d 988, 2015 Fla. App. LEXIS 3614, 2015 WL 1088469

District Court of Appeal of Florida | Filed: Mar 13, 2015 | Docket: 60250242

Cited 2 times | Published

accordance with section 631.54(3), Florida Statutes (2011). FIGA alleged that under section 631.54(3)(c), it

Florida Insurance Guaranty v. Sill

154 So. 3d 422, 2014 Fla. App. LEXIS 20156, 2014 WL 6990579

District Court of Appeal of Florida | Filed: Dec 12, 2014 | Docket: 60245482

Cited 2 times | Published

directly pay the insureds in contravention of section 631.54(3), Florida Statutes (2011). Our scope of review

FLORIDA INS. GUAR. ASS'N v. Petty

44 So. 3d 1191, 2010 WL 3766879

District Court of Appeal of Florida | Filed: Sep 29, 2010 | Docket: 2542540

Cited 2 times | Published

claim arises is permanently located in this state. § 631.54(3) (emphasis added). Section 631.53 provides that

Johnson v. Government Employees Ins. Co.

333 So. 2d 542

District Court of Appeal of Florida | Filed: May 4, 1976 | Docket: 1291001

Cited 2 times | Published

forth in Section 631.54(5) was incorporated in the uninsured motorists statute. Section 631.54(5) of the

Leandro de la Fuente v. Florida Insurance Guaranty Association

202 So. 3d 396, 41 Fla. L. Weekly Supp. 473, 2016 Fla. LEXIS 2327

Supreme Court of Florida | Filed: Oct 20, 2016 | Docket: 4481081

Cited 1 times | Published

DOES THE DEFINITION OF “COVERED CLAIM” IN SECTION 631.54(3), FLORIDA STATUTES, EFFECTIVE MAY 17, 2011

Florida Insurance Guaranty v. Monaghan

167 So. 3d 511, 2015 Fla. App. LEXIS 9740, 2015 WL 3903576

District Court of Appeal of Florida | Filed: Jun 26, 2015 | Docket: 60248484

Cited 1 times | Published

claim’ for sinkhole loss as defined by Fla. Stat. § 631.54(3)(c) (2011).” We believe that this was an admission

Florida Insurance Guaranty Ass'n v. Petty

44 So. 3d 1191, 2010 Fla. App. LEXIS 14469

District Court of Appeal of Florida | Filed: Sep 29, 2010 | Docket: 60295548

Cited 1 times | Published

claim arises is permanently located in this state. § 631.54(3) (emphasis added). Section 631.53 provides that

FLORIDA INS. GUAR. ASS'N, INC. v. Soto

979 So. 2d 964, 2008 WL 183501

District Court of Appeal of Florida | Filed: Jan 23, 2008 | Docket: 1714377

Cited 1 times | Published

covered by a policy issued by the insolvent insurer. § 631.54(3), Fla. Stat. (2001). In this case, there is

McLeod v. Continental Ins. Co.

573 So. 2d 864, 1990 WL 177723

District Court of Appeal of Florida | Filed: Nov 14, 1990 | Docket: 1518696

Cited 1 times | Published

did not make that an issue on appeal. [3] Section 631.54(3), Florida Statutes (1985), provides in part:

Queen v. Clearwater Elec., Inc.

555 So. 2d 1262, 1989 WL 151453

District Court of Appeal of Florida | Filed: Jan 26, 1990 | Docket: 1724707

Cited 1 times | Published

claim against the association and the insured. Section 631.54(3), Florida Statutes (1983) defines a "covered

Condominium Association of Golf Villas II, Inc. v. Florida Insurance Guaranty Association, Inc.

District Court of Appeal of Florida | Filed: Apr 30, 2025 | Docket: 69998664

Published

Ass’n, 908 So. 2d 435, 442 (Fla. 2005)). Section 631.54(4), Florida Statutes (2020), defines a “covered

FLORIDA INSURANCE GUARANTY ASSOCIATION v. YANICET REYES

District Court of Appeal of Florida | Filed: Sep 30, 2020 | Docket: 18488448

Published

"a 'covered claim' as defined by § 631.54(3), [Florida Statutes (2011),]1" and that

PHYLIS HEID v. FLORIDA INSURANCE GUARANTY ASSOC.

District Court of Appeal of Florida | Filed: Oct 11, 2019 | Docket: 16322819

Published

FIGA responded that fees were precluded under section 631.54(3)(c) because the fees were "in connection

Pupo v. Florida Insurance Guaranty Association

218 So. 3d 999, 2017 WL 1969690, 2017 Fla. App. LEXIS 6775

District Court of Appeal of Florida | Filed: May 12, 2017 | Docket: 6061247

Published

the amended definition of “covered claim” in section 631.54(3)(e), Florida Statutes (2011), does not apply

Miller v. Florida Insurance Guaranty Association, Inc.

200 So. 3d 200, 2016 Fla. App. LEXIS 10868, 2016 WL 3766630

District Court of Appeal of Florida | Filed: Jul 15, 2016 | Docket: 4111225

Published

fees was specifically precluded by language in section 631.54(3)(c), Florida Statutes (2012), which excludes

Florida Insurance Guaranty Ass'n v. Rodriguez

170 So. 3d 89, 2015 Fla. App. LEXIS 9245, 2015 WL 3760813

District Court of Appeal of Florida | Filed: Jun 17, 2015 | Docket: 60249525

Published

DOES THE DEFINITION OF “COVERED CLAIM” IN SECTION 631.54(3), FLORIDA STATUTES, EFFECTIVE MAY 17, 2011

Florida Insurance Guaranty Association, Inc. v. Lustre

163 So. 3d 624, 2015 Fla. App. LEXIS 6026, 2015 WL 1874445

District Court of Appeal of Florida | Filed: Apr 24, 2015 | Docket: 2652166

Published

insurance claim. . A “covered claim” is defined in section 631.54(3). In general, a covered claim may be an insurance

Florida Insurance Guaranty Association, Inc. v. Maya

162 So. 3d 1118, 2015 Fla. App. LEXIS 5812, 2015 WL 1809563

District Court of Appeal of Florida | Filed: Apr 22, 2015 | Docket: 2651564

Published

definition of “covered claim” contained in section 631.54(3), Florida Statutes, FIGA argued that appraisal

Florida Insurance Guaranty Ass'n v. Kirschner

159 So. 3d 1030, 2015 Fla. App. LEXIS 4393, 2015 WL 1400970

District Court of Appeal of Florida | Filed: Mar 27, 2015 | Docket: 60246406

Published

is not available under the 2011 amendment to section 631.54(3), Florida Statutes, applicable to this case

Florida Insurance Guaranty Association, Inc. v. Frank

158 So. 3d 745, 2015 Fla. App. LEXIS 2352, 2015 WL 719056

District Court of Appeal of Florida | Filed: Feb 20, 2015 | Docket: 2635796

Published

argues that appraisal is not appropriate under section 631.54(3)(c), Florida Statutes (2011). Part of the

Florida Insurance Guaranty Ass'n v. Simmons

157 So. 3d 506, 2015 Fla. App. LEXIS 1915, 2015 WL 585542

District Court of Appeal of Florida | Filed: Feb 13, 2015 | Docket: 60246080

Published

amendment to the definition of “covered claim” in section 631.54(3), Florida Statutes (2011), apply to a sinkhole

Florida Insurance Guaranty Association v. de la Fuente

158 So. 3d 675, 2015 Fla. App. LEXIS 102, 2015 WL 72273

District Court of Appeal of Florida | Filed: Jan 7, 2015 | Docket: 2621519

Published

rejected by any other state guaranty fund.... § 631.54(3), Fla. Stat. (2008). The legislature amended

Florida Insurance Guaranty Ass'n v. Karelas

106 So. 3d 1, 2012 WL 6049111, 2012 Fla. App. LEXIS 20814

District Court of Appeal of Florida | Filed: Dec 5, 2012 | Docket: 60228068

Published

are required by the unambiguous language of section 631.54(6) which provides that an “insolvent insurer

Alessio v. Florida Insurance Guaranty Ass'n

91 So. 3d 910, 2012 WL 2614355, 2012 Fla. App. LEXIS 10888

District Court of Appeal of Florida | Filed: Jul 6, 2012 | Docket: 60310021

Published

2003)). However, under the plain language of section 631.54(3), Florida Statutes (2008), a claim is a “covered

Florida Insurance Guaranty Ass'n v. B.T. of Sunrise Condominium Ass'n

46 So. 3d 1039, 2010 Fla. App. LEXIS 14025, 2010 WL 3655818

District Court of Appeal of Florida | Filed: Sep 22, 2010 | Docket: 60296107

Published

excess of $100 and is less than $300,000, ... Section 631.54(3) defines a “covered claim” as: “Covered claim”

Florida Insurance Guaranty Ass'n v. Alatriste

584 So. 2d 644, 1991 Fla. App. LEXIS 7932, 16 Fla. L. Weekly Fed. D 2504

District Court of Appeal of Florida | Filed: Aug 13, 1991 | Docket: 64660971

Published

claim” which FIGA is required to pay under Section 631.54(3), Florida Statutes (1989). We cannot agree

Williams v. Florida Insurance Guaranty Ass'n

549 So. 2d 253, 14 Fla. L. Weekly 2267, 1989 Fla. App. LEXIS 5290

District Court of Appeal of Florida | Filed: Sep 28, 1989 | Docket: 64645201

Published

insurance policy to which this part applies .... § 631.54(3), Fla. Stat. (1983). Further, FIGA’s scope of

Upper Keys Marine Construction, Inc. v. Alonzo Cothron, Inc.

507 So. 2d 1135, 1987 Fla. App. LEXIS 7892, 12 Fla. L. Weekly 1111

District Court of Appeal of Florida | Filed: Apr 28, 1987 | Docket: 64627460

Published

insurance carrier in order to urge as a defense section 631.54(3), Fla.Stat. (1985). The trial court denied

Florida Insurance Guaranty Ass'n v. Trawick

491 So. 2d 621, 11 Fla. L. Weekly 1615, 1986 Fla. App. LEXIS 9059

District Court of Appeal of Florida | Filed: Jul 25, 1986 | Docket: 64620685

Published

paternity denotes a single covered claim under section 631.54(4), Florida Statutes (Supp.1982). Appellees’

Bendeck ex rel. P.L.I. Trust v. Manheimer

433 So. 2d 1007, 1983 Fla. App. LEXIS 27834

District Court of Appeal of Florida | Filed: May 31, 1983 | Docket: 64597981

Published

3d DCA) cert. denied, 316 So.2d 295 (Fla.1975); § 631.54(4), Fla.Stat. (1981).

Carrazana v. Florida Insurance Guaranty Ass'n

374 So. 2d 581, 1979 Fla. App. LEXIS 15705

District Court of Appeal of Florida | Filed: Aug 7, 1979 | Docket: 64571681

Published

conduct is not a “covered claim” as defined in Section 631.54(4), Florida Statutes (1977). See also Section