Division of Rehabilitation and Liquidation
| Liquidation | 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. |
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