Florida Statute 631.031 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXVII
INSURANCE

Chapter 631
INSURER INSOLVENCY; GUARANTY OF PAYMENT

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631.031 Initiation and commencement of delinquency proceeding.—

(1) Upon a determination by the office that one or more grounds for the initiation of delinquency proceedings exist pursuant to this chapter and that delinquency proceedings must be initiated, the Director of the Office of Insurance Regulation shall notify the department of such determination and shall provide the department with all necessary documentation and evidence. If the director must notify the department of a determination regarding a property insurer, the notification must include an affidavit that identifies the grounds for rehabilitation pursuant to s. 631.051; the date that each insurer was deemed impaired of capital or surplus, as the terms impairment of capital and impairment of surplus are defined in s. 631.011, or insolvent, as the term insolvency is defined in s. 631.011; a concise statement of the circumstances that led to the insurer’s delinquency; and a summary of the actions taken by the insurer and the office to avoid delinquency. The department shall then initiate such delinquency proceedings.

(2) The department may commence any such proceeding by application to the court for an order directing the insurer to show cause why the department should not have the relief prayed for. On the return of such order to show cause, and after a full hearing, the court shall either deny the application or grant the application, together with such other relief as the nature of the case and the interests of the policyholders, creditors, stockholders, members, subscribers, or public may require. The department may also commence any such proceeding by application to the court by petition for the entry of a consent order of conservation, rehabilitation, or liquidation.

(3) An insurer subject to an order to show cause entered pursuant to this chapter must file its written response to the order, together with any defenses it may have to the department’s allegations, no later than 20 days after service of the order to show cause, but no less than 15 days before the date of the hearing set by the order to show cause.

(4) A hearing held pursuant to this chapter to determine whether cause exists for the department to be appointed receiver must be commenced within 60 days after an order directing an insurer to show cause.

History.—s. 719, ch. 59-205; ss. 13, 35, ch. 69-106; s. 213, ch. 77-104; s. 809(1st), ch. 82-243; s. 38, ch. 88-166; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 1343, ch. 2003-261; s. 3, ch. 2017-143; s. 20, ch. 2022-268.

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Amendments to 631.031

Annotations, Discussions, Cases:

Cases Citing Statute 631.031

Total Results: 5 | Sort by: Relevance | Newest First

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Dolan v. Hartford Ins. Co. of the Se, 566 So. 2d 316 (Fla. 4th DCA 1990).

Cited 3 times | Published | Florida 4th District Court of Appeal | 1990 WL 116365

...The order of dismissal is reversed and the cause remanded for further proceedings. WARNER and POLEN, JJ., concur. NOTES [1] We note that subsequently section 631.041, Florida Statutes, has been amended to provide for an automatic stay in proceedings under section 631.031, Florida Statutes....

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Florida Dept. of Ins. v. Cypress Ins. Co., 660 So. 2d 1177 (Fla. 1st DCA 1995).

Cited 1 times | Published | Florida 1st District Court of Appeal | 1995 Fla. App. LEXIS 10285, 1995 WL 573047

...On October 27, 1992, the Department filed a petition seeking an order to show good cause why the Department should not be appointed as receiver for Cypress for purposes of liquidation. As grounds, the petition alleged that the Department was empowered by sections 631.031 and 631.061, Florida Statutes (1991), to apply for the order to show cause because Cypress was insolvent within the meaning of subsection 631.011(11) due to "excessive losses caused in part by Hurricane Andrew in that `all the assets of the i...

...This *1183 receivership action is not an administrative proceeding in which the Department acts as fact-finder and final decision maker and enters an administrative order to effect its will. Instead, it is a judicial proceeding in which those functions are the responsibility of the circuit court. Section 631.031 recognizes the circuit court's judicial discretion to determine whether the Department's petition or application should be granted by explicitly providing that, after the Department commences the delinquency proceedings by applying to...

...ll hearing, the court shall either deny the application or grant the application, together with such other relief as the nature of the case and the interests of the policyholders, creditors, stockholders, members, subscribers, or public may require. § 631.031, Fla....

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Williams v. Gottlieb, 249 So. 2d 425 (Fla. 1971).

Published | Supreme Court of Florida | 1971 Fla. LEXIS 3606

proceeding filed April 2, 1969, under Florida Statutes § 631.031, F. S.A. Appellee Gottlieb is the judgment creditor

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Florida Off. of Ins. Reg. v. Florida Dep't of Fin. Servs., 159 So. 3d 945 (Fla. 1st DCA 2015).

Published | Florida 1st District Court of Appeal | 2015 Fla. App. LEXIS 3576, 2015 WL 1084929

...ceedings must be initiated, the Director of the Office of Insurance Regulation shall notify [DFS] of such determination and shall provide [DFS] with all necessary documentation and evidence. [DFS] shall then initiate such delinquency proceedings.” § 631.031(1), Fla....

...l statements had reflected that the insurance companies were insolvent at that time. OIR attached to its motion an affidavit from McCarty. McCarty stated that he referred the insurance companies to DFS in 2006 as he was statutorily required to do by section 631.031 “ ‘[ujpon a determination by the office ’ ” that the insurer was insolvent....

...insurance company to DFS for receivership without McCarty’s approval, and that McCarty had an “active involvement in the process by which the OIR staff develops a referral recommendation.” The court further stated that finding was supported by section 631.031(1), which states only the Insurance Commissioner may refer an insurer to DFS for receivership....

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Payroll Transfers Interstate v. Forshey, 694 So. 2d 80 (Fla. 1st DCA 1997).

Published | Florida 1st District Court of Appeal | 1997 Fla. App. LEXIS 4004, 1997 WL 185606

...cidents before January 1, 1994. The only stay provision in chapter 631 which was asserted to bar these proceedings is section 631.041, Florida Statutes (1995), which provides, in pertinent part, that the commencement of delinquency proceedings under section 631.031 operates as an automatic stay which prohibits "[t]he commencement or continuation of judicial, administrative, or other action or proceeding against the insurer or against its assets ..." PTI argues that it should have been protected...

This Florida statute resource is curated by Graham W. Syfert, Esq., a Jacksonville, Florida personal injury and workers' compensation attorney. For legal consultation, call 904-383-7448.