The 2023 Florida Statutes (including Special Session C)

Title XXXVII
INSURANCE

Chapter 631
INSURER INSOLVENCY; GUARANTY OF PAYMENT

View Entire Chapter

F.S. 631.399

631.399 Receiver’s right to recover distributions made to affiliate.—

(1) If an order for liquidation or rehabilitation of an insurer domiciled in this state has been entered, the receiver appointed under such order has a right to recover on behalf of the insurer, from any affiliate, the amount or value of distributions, other than stock dividends paid by the insurer on its capital stock, made at any time during the 5 years preceding the petition for liquidation or rehabilitation, subject to the limitations of subsections (2), (3), and (4).

(2) The distributions shall be recoverable unless the affiliate shows that the distributions were lawful and reasonable and that the insurer did not know and could not reasonably have known that the distributions might adversely affect the ability of the insurer to fulfill its contractual obligations.

(3) Any affiliate at the time the distributions were made is liable up to the amount or value of distributions it received.

(4) The maximum amount recoverable under this section is the amount needed in excess of all other available assets of the insolvent insurer to pay the contractual obligations of the insolvent insurer.

(5) If any affiliate liable under subsection (3) is insolvent, all of its affiliates are jointly and severally liable for any resulting deficiency in the amount recovered from the insolvent affiliate.

History.—s. 13, ch. 79-189; s. 809(1st), ch. 82-243; s. 29, ch. 83-38; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

Note.—Former s. 631.732.

F.S. 631.399 on Google Scholar

F.S. 631.399 on Casetext

Amendments to 631.399

Arrestable Offenses / Crimes under Fla. Stat. 631.399

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 631.399.

Annotations, Discussions, Cases:

Cases from cite.case.law:

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

. . . See § 631.399, Fla. Stat. (2004) (“Receiver’s right to recover distributions made to affiliate.”). . . .

In BLACKBURN. STATE OF FLORIDA DEPARTMENT OF INSURANCE, AS RECEIVER OF GUARANTEE SECURITY LIFE INSURANCE COMPANY, v. BLACKBURN, STATE OF FLORIDA DEPARTMENT OF INSURANCE, AS RECEIVER OF ATLANTIC GENERAL LIFE INSURANCE COMPANY, v. BLACKBURN,, 209 B.R. 4 (Bankr. M.D. Fla. 1997)

. . . motion for summary judgment: A Can a natural person be an “affiliate” within the meaning of Section 631.399 . . . of distributions ... made at any time during the 5 years preceding the petition for liquidation.” § 631.399 . . . defendant traces the changes to the statute and points out that over time the Legislature amended Section 631.399 . . . affiliate” of GSL and AGL for purposes of the plaintiffs recovery of distributions pursuant to Section 631.399 . . .

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)

. . . . §§ 631.001-631.399, Fla.Stat. (1993). . §§ 631.50-631.705, Fla.Stat. (1993). . . . .

LIDSKY P. A. v. FLORIDA DEPARTMENT OF INSURANCE, Co., 643 So. 2d 631 (Fla. Dist. Ct. App. 1994)

. . . .” §§ 631.001-631.399, Fla. Stat. (1993). . . .

STATE DEPARTMENT OF INSURANCE, v. B. BLACKBURN,, 633 So. 2d 521 (Fla. Dist. Ct. App. 1994)

. . . Counts X through XIV and XVI assert claims under sections 631.261(1), 631.262(1) and 631.399, Florida . . . A receiver is also authorized to assert claims under sections 631.261(1), 631.262(2) and 631.399 that . . .

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

. . . entered in this action arising under the Insurers Rehabilitation and Liquidation Act, sections 631.001 to 631.399 . . .

SABATO, v. FLORIDA DEPARTMENT OF INSURANCE, 768 F. Supp. 1562 (S.D. Fla. 1991)

. . . . §§ 631.001-631.399 (1989). . . . .

CAPITOL FIDELITY LIFE INSURANCE COMPANY, v. STATE DEPARTMENT OF INSURANCE, 478 So. 2d 1105 (Fla. Dist. Ct. App. 1985)

. . . The proper arena for determination of the “affiliate” question under section 631.399 is in the trial . . .