CFO Jimmy's Patronis' Seal

Brief Comparison of Rehabilitation to Liquidation



Deputy Receiver in charge

Deputy Receiver in charge

Financial activity through company

Financial activity through Receiver's office

Receiver takes possession of all company assets, including records

Receiver takes possession of all company assets, including records

Receiver investigates and collects all company assets

Receiver investigates, collects and converts all company assets into cash

Company pays claims

A deadline for filing claims is established by court order. Guaranty Associations, if applicable, pay covered claims. Claims not covered by a Guaranty Association are processed by the Receiver

Payments based on court order

Payments based on statutory priority scheme. A claims distribution is determined by the amount of available assets, if any, of the receivership estate. Claims are paid by class in order of the priorities set out in Section 631.271, Florida Statute. Beginning with Class 1, all approved claims in a class must be paid in full before any payment is made to the next class. If there are insufficient funds to pay a class in full, all approved claims in that class are paid in equal pro rata shares

Litigation against the company is stayed by statute and court order. Litigation against the insureds is not stayed by statute, but may be by court order. The company will continue to defend its insureds.

Litigation against the company is permanently stayed by statute and court order. Insureds are defended by the appropriate Guaranty Association.

The Receiver returns the company to a sound financial condition and ends the rehabilitation or, when it is not possible to return the company to the marketplace, the Receiver converts the receivership to a liquidation proceeding and concludes the rehabilitation phase.

The Receiver will evaluate all claims filed in the receivership proceeding, issue checks, prepare a final accounting, and obtain a court order discharging it from further responsibilities and closing the receivership/​liquidation proceeding.