Division of Rehabilitation and Liquidation

Summary of Rehabilitation under Chapter 631, Part I, Florida Statutes

Unlike the liquidation portion of Chapter 631, Part I, Florida Statutes, the rehabilitation portion of the law is very general. It provides the Receiver, as the rehabilitator, with great discretion to prepare a plan to assist a company to resolve its difficulties. The Receiver is responsible for taking actions necessary to correct the conditions that necessitated the receivership. Generally, the Receiver suspends all powers of the company’s directors, officers and managers.

By Statute and Court Order:

• The Receiver is authorized to conduct all business of the insurer.
• The Receiver may direct, manage, hire, and discharge employees.
• The Receiver is authorized to manage the property and assets of the insurer as it deems necessary.
• The Receiver may file for release of the company from receivership if rehabilitation efforts are successful and grounds for receivership no longer exist.
• The Receiver may file for liquidation of the insurer if it deems that further attempts to rehabilitate the insurer are futile or if a continued rehabilitation would increase the risk of loss to policyholders.

The liquidation portion of Chapter 631, Part I, Florida Statutes is different. The entire statute can be found here (you are leaving the DFS website and opening a new browser window) .

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