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Florida Statute 631.041 | Lawyer Caselaw & Research
F.S. 631.041 Case Law from Google Scholar
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Link to State of Florida Official Statute Google Search for Amendments to 631.041

The 2023 Florida Statutes (including Special Session C)

Title XXXVII
INSURANCE
Chapter 631
INSURER INSOLVENCY; GUARANTY OF PAYMENT
View Entire Chapter
F.S. 631.041
631.041 Automatic stay; relief from stay; injunctions.
(1) An application or petition under s. 631.031 operates as a matter of law as an automatic stay applicable to all persons and entities, other than the receiver and the office, which shall be permanent and survive the entry of an order of conservation, rehabilitation, or liquidation, and which shall prohibit:
(a) The commencement or continuation of judicial, administrative, or other action or proceeding against the insurer or against its assets or any part thereof;
(b) The enforcement of a judgment against the insurer or an affiliate obtained either before or after the commencement of the delinquency proceeding;
(c) Any act to obtain possession of property of the insurer;
(d) Any act to create, perfect, or enforce a lien against property of the insurer, except that a secured claim as defined in s. 631.011(21) may proceed under s. 631.191 after the order of liquidation is entered;
(e) Any act to collect, assess, or recover a claim against the insurer, except claims as provided for under this chapter; and
(f) The setoff or offset of any debt owing to the insurer, except offsets as provided in s. 631.281.
(2) Upon written request of a person or entity subject to the stay against obtaining or enforcing a judgment against an insurer or affiliate provided in paragraph (1)(b) the court, with notice to the department and upon hearing, may grant relief from the stay provided the movant, who has the burden of proof, establishes by clear and convincing evidence that the judgment is not voidable or void by a receiver and that property from which the judgment would be satisfied does not constitute premium funds or another asset which belongs to the insurer.
(3) Upon application by the department pursuant to this part for an order to show cause or upon petition, or at any time thereafter, the court may without notice issue an injunction restraining the insurer and its officers, directors, stockholders, members, subscribers, and agents and all other persons from the transaction of its business or the waste or disposition of its property until the further order of the court.
(4) The court may without notice at any time during a proceeding under this chapter issue such other injunctions or orders as may be deemed necessary to prevent interference with the department or the proceeding; waste of the assets of the insurer; the commencement or prosecution of any actions; the obtaining of preferences, judgments, attachments, or other liens; or the making of any levy against the insurer or against its assets or any part thereof.
(5) Notwithstanding any other provision of law, no bond shall be required of the department as a prerequisite for the issuance of any injunction or restraining order pursuant to this section.
(6) The estate of an insurer in rehabilitation or liquidation which is injured by any willful violation of an applicable stay or injunction shall be entitled to actual damages, including costs and attorney’s fees, and, in appropriate circumstances, the receivership court may impose additional sanctions.
History.s. 720, ch. 59-205; ss. 13, 35, ch. 69-106; s. 809(1st), ch. 82-243; s. 4, ch. 83-38; s. 39, ch. 88-166; ss. 83, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 7, ch. 2002-25; s. 29, ch. 2004-374; s. 4, ch. 2017-143.

F.S. 631.041 on Google Scholar

F.S. 631.041 on Casetext

Amendments to 631.041


Arrestable Offenses / Crimes under Fla. Stat. 631.041
Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 631.041.



Annotations, Discussions, Cases:

Cases from cite.case.law:

MORRISON, v. HOMEWISE PREFERRED INSURANCE COMPANY, 209 So. 3d 682 (Fla. Dist. Ct. App. 2017)

. . . receiver for Homewise for purposes of rehabilitation and issuing an automatic mandatory stay under section 631.041 . . . insurer when the Department of Finance files a delinquency petition against . the insolvent insurer. § 631.041 . . .

FLORIDA INSURANCE GUARANTY ASSOCIATION, INC. v. MENDOZA, 193 So. 3d 940 (Fla. Dist. Ct. App. 2016)

. . . . § 631.041(1), Fla. Stat. (2011). . . . and that stay is permanent because of the Consent Order requiring the liquidation of First Home. § 631.041 . . . The plaintiffs action against the insolvent insurer is permanently stayed by virtue of section 631.041 . . .

LAKECHEA, v. MAGNOLIA INSURANCE COMPANY,, 146 So. 3d 1207 (Fla. Dist. Ct. App. 2014)

. . . Compare § 631.041, Fla. Stat. (2010) with § 631.57(2)(c). . . .

DEVONSHIRE AT PGA NATIONAL, LLC, v. STATE DEPARTMENT OF FINANCIAL SERVICES OF THE STATE OF FLORIDA,, 103 So. 3d 1060 (Fla. Dist. Ct. App. 2013)

. . . order to allow Devonshire to appeal, which it has done; it also granted an automatic stay under section 631.041 . . .

FLORIDA INSURANCE GUARANTY ASSOCIATION, INC. a v. OLYMPUS ASSOCIATION, INC. a, 34 So. 3d 791 (Fla. Dist. Ct. App. 2010)

. . . 2006, Southern Family was placed in receivership for liquidation purposes, and pursuant to section 631.041 . . .

OCEAN BANK, v. STATE DEPARTMENT OF FINANCIAL SERVICES, Co., 902 So. 2d 833 (Fla. Dist. Ct. App. 2005)

. . . The receivership court entered a notice of automatic stay under section 631.041(1), Florida Statutes . . .

FRONTIER INSURANCE COMPANY, v. AMERICAN TITLE SERVICES,, 838 So. 2d 1178 (Fla. Dist. Ct. App. 2003)

. . . . § 631.041(l)(a), Fla.Stat. (2002). . . .

MANTERO- ATIENZA, M. D. v. J. SALVADOR,, 807 So. 2d 163 (Fla. Dist. Ct. App. 2002)

. . . argument that a stay should not be issued because the stay in this case is not within the scope of section 631.041 . . . Regardless of whether section 631.041 applies, the New York court in its Order of Rehabilitation has . . .

STAFFING CONCEPTS INTERNATIONAL, INC. v. PAUL,, 704 So. 2d 691 (Fla. Dist. Ct. App. 1997)

. . . This is an appeal from the denial of a motion for a stay pursuant to section 631.041, Florida Statutes . . . included appointment of the Department of Insurance as the receiver and a stay provision, pursuant to 631.041 . . . Staffing moved for a stay of the proceedings pursuant to section 631.041, as it had done previously in . . . In Forshey, the court held, inter alia, that section 631.041 stays proceedings only against the insolvent . . .

PAYROLL TRANSFERS INTERSTATE, INC. v. FORSHEY,, 694 So. 2d 80 (Fla. Dist. Ct. App. 1997)

. . . the workers’ compensation proceedings should have been stayed pursuant to the provisions of section 631.041 . . . The only stay provision in chapter 631 which was asserted to bar these proceedings is section 631.041 . . . PTI argues that it should have been protected under section 631.041 because the receiver has the power . . . Section 631.041 only stays proceedings against the insurer or its assets. . . . So.2d 334, 334-35 (Fla. 1st DCA 1995) (“only the insurer is protected by the provisions of section 631.041 . . .

AMERICAN BONDING COMPANY, v. COASTAL METAL SALES, INC., 679 So. 2d 1250 (Fla. Dist. Ct. App. 1996)

. . . Just as the state of Florida would expect Arizona to honor a stay pursuant to section 631.041, Florida . . .

In RECEIVERSHIP OF GUARANTEE SECURITY LIFE INSURANCE COMPANY, a J. PETER, v. STATE DEPARTMENT OF INSURANCE,, 678 So. 2d 828 (Fla. Dist. Ct. App. 1996)

. . . Sections 631.041(l)(a) and (b), Florida Statutes, provide that a petition for an order of rehabilitation . . . Section 631.041(2) authorizes the receivership court to grant relief from “the stay against obtaining . . . To the extent that section 631.041(4) may be read to authorize the issuance of an injunction “to prevent . . . being removed as a nominal party in Seapine’s action against appellants, but we do not read section 631.041 . . . The Florida Statute 631.041 automatic stay and injunctions contained in the August 12, 1991 Order of . . . automatic stay in place, asserting that the court had exceeded its statutory authority under section 631.041 . . . Noting that sections 631.041(l)(a) and (b) provide that a petition for an order of rehabilitation of . . . To the extent that section 631.041(4) maybe read to authorize the issuance of an injunction “to prevent . . . being removed as a nominal party in Seapine’s action against appellants, but we do not read section 631.041 . . . simply modified that portion of its “discretionary injunction,” issued under the authority of section 631.041 . . . Sea-pine did not establish the requisite justification for issuance of an injunction pursuant to section 631.041 . . . It argues that section 631.041(4) “does not prohibit actions against the Department of Insurance as receiver . . .

JIMMY LANG S AUTO SERVICE Co. v. L. PROCTOR,, 667 So. 2d 334 (Fla. Dist. Ct. App. 1995)

. . . judicial and administrative proceedings against the insurer or its assets in accordance with section 631.041 . . . led us to the preliminary conclusion that only the insurer is protected by the provisions of section 631.041 . . .

FLORIDA DEPARTMENT OF INSURANCE, v. CYPRESS INSURANCE COMPANY,, 660 So. 2d 1177 (Fla. Dist. Ct. App. 1995)

. . . insurer’s assets, an act Cypress clearly accomplished by its settlement agreement in violation of section 631.041 . . .

W. SNYDER, W. P. A. a v. H. DOUGLAS, a k a B. Jr. B. III,, 647 So. 2d 275 (Fla. Dist. Ct. App. 1994)

. . . FIGA also alleged that such a stay was appropriate under section 631.041. . . .

WESTCOTT, v. THOMAS, M. L. a, 819 F. Supp. 1056 (M.D. Fla. 1993)

. . . judicial action against the Plan, or the enforcement of any judgment against the Plan, pursuant to Section 631.041 . . .

NOVA INSURANCE GROUP, INC. v. FLORIDA DEPARTMENT OF INSURANCE,, 606 So. 2d 429 (Fla. Dist. Ct. App. 1992)

. . . The order also gives notice pursuant to section 631.041(1), Florida Statutes, that the department’s petition . . . The department insists that the stay was appropriate pursuant to section 631.041(l)(a) which prohibits . . . as defined in section 631.011(15), and therefore, it should not have been stayed pursuant to section 631.041 . . . Section 631.041(2) describes the procedure by which a person affected by the automatic stay may seek . . .

DOLAN v. HARTFORD INSURANCE COMPANY OF THE SOUTHEAST, a Co., 566 So. 2d 316 (Fla. Dist. Ct. App. 1990)

. . . We note that subsequently section 631.041, Florida Statutes, has been amended to provide for an automatic . . .

A. SIERRA, M. D. E. f k a v. INTERNATIONAL MEDICAL CENTERS, INC. a, 538 So. 2d 102 (Fla. Dist. Ct. App. 1989)

. . . The question presented is whether section 631.041, Florida Statutes, provides an automatic stay of an . . . While this appeal was pending, the legislature amended section 631.041, effective August 5, 1988, which . . . added) We hold, in response to the question presented, that the automatic stay provision of section 631.041 . . .