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Overview of Rehabilitation under Chapter 631, Florida Statutes

Rehabilitation is a mechanism that can be used to remedy an insurer’s problems, to resolve its liabilities in order to avoid liquidation, or to prepare the insurer for liquidation. Rehabilitation generally provides the Receiver with great discretion to prepare a plan to assist an insurer in resolving its financial and/or other difficulties. The Receiver is responsible for taking actions necessary to correct the conditions that necessitated the receivership and, when possible, returning the insurer to the marketplace.

By Statute and Court Order:

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

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.

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 insurer into Liquidation.