State RegulationsFL specificDifficulty 2/5
A Florida-domiciled insurer is declared insolvent. Who is appointed to take control of its assets and manage the delinquency proceeding?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 631, Florida Statutes (Part III), the Florida Department of Financial Services is appointed receiver when an insurer is found insolvent, taking possession of the insurer's assets and administering the estate through rehabilitation or liquidation. The guaranty association separately protects covered policyholders, but it does not serve as the receiver.
Why the other options are wrong
- A) The Office of Insurance Regulation supervises insurers prospectively through forms, rates, and solvency monitoring, but it does not act as receiver in a delinquency proceeding.
- C) FLAHIGA pays covered claims of the insolvent insurer's policyholders; it does not take over the insurer's estate.
- D) Insurer insolvency in Florida is handled by a state delinquency proceeding under Chapter 631, not by federal bankruptcy court.
Memory hook
Insolvent insurer? DFS takes the keys as receiver.