Insurer Insolvency; Guaranty of Payment, complete (Parts I-V)

What this document is

Florida Statutes ch. 631 - Insurer Insolvency; Guaranty of Payment, complete (Parts I-V) (ss. 631.001-631.932) is a state statute published by The Florida Senate / Florida Legislature (flsenate.gov), official Florida Statutes. It is one of the Florida documents that insurance license exam questions are written from, including florida property & casualty, florida personal lines, florida claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Fla. Stat. Sec. 631.57(1)(a)2. (Powers and Duties of the Association; Amount of a Covered Claim)

  “2. The obligation under subparagraph 1. includes the amount of each covered claim which is less than $300,000, except that policies providing coverage for homeowner’s insurance must provide for an additional $200,000 for the portion of a covered claim which relates only to the damage to the structure and contents.”

• Fla. Stat. Sec. 631.57(1)(b) (Powers and Duties of the Association; The Association as the Insurer)

  “(b) Be deemed the insurer to the extent of its obligation on the covered claims, and, to such extent, shall have all rights, duties, defenses, and obligations of the insolvent insurer as if the insurer had not become insolvent. In no event shall the association be liable for any penalties or interest.”

• Fla. Stat. § 631.57(1)(b) (Powers and Duties of the Association)

  “(b) Be deemed the insurer to the extent of its obligation on the covered claims, and, to such extent, shall have all rights, duties, defenses, and obligations of the insolvent insurer as if the insurer had not become insolvent. In no event shall the association be liable for any penalties or interest.”

• Fla. Stat. § 631.52 (Scope of the Florida Insurance Guaranty Association Part; Exceptions)

  “This part shall apply to all kinds of direct insurance, except: (1) Life, annuity, health, or disability insurance; (2) Mortgage guaranty, financial guaranty, or other forms of insurance offering protection against investment risks; (3) Fidelity or surety bonds, or any other bonding obligations;...”

• Fla. Stat. § 631.54(4) (Florida Insurance Guaranty Association Act; Covered Claim)

  “Any amount payable for a sinkhole loss other than testing deemed appropriate by the association or payable for the actual repair of the loss, except that the association may not pay for attorney’s fees or public adjuster’s fees in connection with a sinkhole loss or pay the policyholder.”

• Fla. Stat. § 631.61(1) (Nonduplication of Recovery)

  “Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered claim, shall not be required to exhaust first her or his rights under such a policy. Any amount payable on a covered claim under this part...”

• Fla. Stat. § 631.60(1) (Effect of Paid Claims; Assignment)

  “Any person recovering under this part shall be deemed to have assigned her or his rights under the policy to the association to the extent of the person’s recovery from the association,”

• Fla. Stat. § 631.60(4) (Effect of Paid Claims; Releases)

  “Any release of the association and its insured must clearly state whether or not any claim filed with the receiver in excess of the liability of the association under s. 631.57 is waived.”

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Questions about this source

More Florida sources

• Florida Administrative Code, Division 69O: chs. 69O-123 (Civil Remedy), 69O-124 (Anti-Coercion), 69O-125 (Unfair Discrimination), 69O-142 (Insurer Conduct), 69O-153 (Deceptive Insurance Practices), 69O-189 (Workers' Compensation), 69O-196 (Premium Finance Companies), 69O-215 (Agents), 69O-220 (Adjusters), 69O-228 (Continuing Education), 69O-230 (General Ethics and Disclosure Requirements) and 69O-231 (Penalty Guidelines for Insurance Representatives) (98 rules, 69O-123.001-69O-231.160)Regulation
• Florida Administrative Code, Division 69O (Office of Insurance Regulation): chs. 69O-166 (Property and Casualty Insurer Practices), 69O-167 (Property and Casualty Insurance Contracts), 69O-170 (Property and Casualty Insurance Rating), 69O-175 (Motor Vehicle Insurance) and 69O-176 (Motor Vehicle Insurance Requirements), 87 of the 89 rules the publisher lists (the two omitted are 69O-170.021 and 69O-170.022, transferred stubs whose .doc file holds a title and nothing else) (87 rules, 69O-166.021-69O-176.022)Regulation
• Florida Statutes s. 626.112 - License and appointment requiredState statute
• Florida Statutes s. 626.2815 - Continuing education requirementsState statute
• Florida Statutes s. 626.611 - Grounds for compulsory refusal, suspension, or revocation of licenseState statute
• Florida Statutes s. 626.621 - Grounds for discretionary refusal, suspension, or revocation of licenseState statute
• Florida Statutes s. 626.641 - Duration of suspension or revocation of licenseState statute
• Florida Statutes s. 626.7451 - Managing general agents; required contract provisionsState statute