Liquidation vs. Rehabilitation

Company dissolved

Board of Directors suspended temporarily.

Deputy Receiver in charge

Deputy Receiver in charge.

Financial activity through Receiver's Office

Financial activity through company

Guaranty Funds pay policy (covered) claims.

Company pays claims.

Payments based on statute.

Payments based on court order

Marshal of Assets by Receiver.

Marshal of Assets by Receiver.

Suits against the Company are stayed by statute and court order.Insureds are defended by the appropriate Guaranty Fund Suits against the Company are stayed by statute and court order.

Suits against the insureds are not stayed by statute, but may be by court order. The Company will continue to settle or defend their insureds.

Proof of claim forms are sent out to potential claimants. Upon return of these forms, the Receiver's claims staff evaluates them.

Either returning the Company to a sound condition and the termination of rehabilitation or converting to liquidation concludes rehabilitation.

Evaluated claims are reported to the Leon County Court and approved for payment subject to objection if the claimant disagrees with the evaluation.

The time a company may be in rehabilitation varies.

If objections are filed the Receiver's legal section will set the objection for hearing before the court

When all objections and any appeals are concluded the Receiver calculates the pro-rata percentage of distribution. The priority of claims is set out by statute. The Receiver then cuts checks and mails them to the claimant's last known address.

If any checks are returned the Receiver attempts to find a better address . If a better address is not found the undistributed funds are turned over to the abandoned property section of the Comptroller of the State of Florida.

The Receiver then prepares a final accounting, which is filed with the court, and the Receiver is discharged.

The time required to completely liquidate a company varies.