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.

By Statute and Court Order:

1. The Receiver is authorized to conduct all business of the insurer.
2. The Receiver may direct, manage, hire, and discharge employees.
3. The Receiver is authorized to manage the property and assets of the insurer as it deems necessary.
4. The Receiver may file for release of the company from receivership if rehabilitation efforts are successful and grounds for receivership no longer exist.
   
   

What happens if the Rehabilitation process is not successful?

There are times when an insurance company cannot be rehabilitated. When this happens, the Florida Department of Financial Services will petition the Leon County Circuit Court to place the company into Liquidation.