Under Chapter 631, Florida Statutes
The liquidation portion of Chapter 631, Part I, Florida Statutes provides specific provisions on all aspects of the liquidation process.
- The Department of Financial Services is responsible for taking possession of the assets and administering them under order of the Leon County Circuit Court. A delinquency proceeding can only be filed by the Department and can only be filed in Leon County.
- Liabilities become fixed as of the date of filing the petition.
- Generally, coverage is continued for the lesser of 30 days from the liquidation date, the normal expiration date, or until the business is transferred.
Some Powers of the Receiver as Liquidator:
- Employ, hire agents and counsel, and fix compensation of those employed.
- Conduct investigations into the causes of the insolvency.
- Commence litigation to recover any funds diverted from the insurer by any officers, directors or employees.
- Litigation may be commenced to recover damages for the good of the insurer's policyholders and other creditors.
- Collect all debts and money due.
- Conduct public and private sales.
- Use assets to transfer policy obligations.
- Acquire, hypothecate, encumber, lease, improve, sell, transfer, abandon or otherwise dispose of assets.
- Notify the insurer's agents so they can advise insureds of the policy cancellation, replace coverage and collect any premium and unearned commissions that may be due the insurer.
- Contract and affirm or disavow existing contracts.
- Prosecute causes of action.
- Take possession of records.
- Deposit and invest assets.
- Assert defenses available to insurer.