1997 Florida Code
TITLE XXXVII INSURANCE
Chapter 624 Insurance Code: Administration And General Provisions  
PART VI ADMINISTRATIVE SUPERVISION; CONFIDENTIALITY; REVIEW (ss. 624.80-624.92)
624.81   Notice to comply with written requirements of department; noncompliance.

624.81  Notice to comply with written requirements of department; noncompliance.--

(1)  If the department determines that the conditions set forth in subsection (2) exist, the department shall notify the insurer in writing of its determination, setting forth the reasons giving rise to the determination, and specifying that the department is applying and effectuating the provisions of this part.

(2)  An insurer shall be subject to administrative supervision by the department if upon examination or at any other time the department determines that:

(a)  The insurer is in unsound condition;

(b)  The insurer's methods or practices render the continuance of its business hazardous to the public or to its insureds; or

(c)  The insurer has exceeded its powers granted under its certificate of authority and applicable law.

(3)  Within 15 days of receipt of notice of the department's determination to proceed under this part, an insurer shall submit to the department a plan to correct the conditions set forth in the notice. For good cause shown, the department may extend the 15-day time period for submission of the plan. If the department and the insurer agree on a corrective plan, a written agreement shall be entered into to carry out the plan.

(4)  If an insurer fails to timely submit a plan, the department may specify the requirements of a plan to address the conditions giving rise to imposition of administrative supervision under this part. In addition, failure of the insurer to timely submit a plan is a violation of the provisions of this code punishable in accordance with s. 624.418.

(5)  The plan shall address, but shall not be limited to, each of the activities of the insurer's business which are set forth in s. 624.83.

(6)  If the department and the insurer are unable to agree on the provisions of the plan, the department may proceed under applicable provisions of this code other than the provisions of this part.

(7)  The insurer shall have 60 days, or a longer period of time as designated by the department but not to exceed 120 days, after the date of the written agreement or the receipt of the department's plan within which to comply with the requirements of the department. At the conclusion of the initial period of supervision, the department may extend the supervision in increments of 60 days or longer, not to exceed 120 days, if conditions justifying supervision exist. Each extension of supervision shall provide the insurer with a point of entry pursuant to chapter 120.

(8)  The initiation or pendency of administrative proceedings arising from actions taken under this section shall not preclude the department from initiating judicial proceedings to place an insurer in conservation, rehabilitation, or liquidation or initiating other delinquency proceedings however designated under the laws of this state.

(9)  If it is determined that the conditions giving rise to administrative supervision have been remedied so that the continuance of its business is no longer hazardous to the public or to its insureds, the department shall release the insurer from supervision.

History.--ss. 71, 72, ch. 89-360; s. 4, ch. 91-429.