Overview of Liquidation under Chapter 631,
In liquidation, the Department must identify creditors, collect and ultimately distribute available assets in accordance with statutory priorities, and close the receivership. Chapter 631, Florida Statutes provides specific provisions regarding all aspects of the liquidation process.
- The liquidation order appoints the Florida Department of Financial Services as the Receiver of the insurer and explains the Receiver’s duties and responsibilities as authorized by the Court. The liquidation order also provides the name and address of the liquidated company and briefly explains the reason for the liquidation.
- The continuation of insurance coverage depends upon the type of insurer that is ordered liquidated and whether or not there is any guaranty association coverage available.
- Information regarding policy status, premium payment, claims processing, and claims payment is receivership specific and may be found by searching for the applicable insurer in Companies in Receivership.
Responsibilities of the Department in a liquidation proceeding:
- Take possession of the assets of the insurer, including records, and administer them under court order
- Employ, hire agents and counsel, and compensate those employed as appropriate
- Assist in the transition of policyholders to other insurance coverage
- Conduct investigations into the causes of the insolvency
- Collect all debts and money due the insurer
- Litigate, as necessary, to recover any funds that may be owed to the insurer for the good of the insurer's policyholders and other creditors
- Sell assets such as real and personal property
- Evaluate and pay claims with available assets, if any