Daytona Beach, Florida, attorney Ted Doran has over 30 years’ experience in law. He is versed in civil litigation and representation of government entities in complex legal issues. In 2013, Ted Doran achieved on behalf of the State of Florida a $15 million judgement, the third-largest award in a Florida receivership.
The Florida Department of Financial Services, Division of Rehabilitation and Liquidation administers insurance companies that are placed into receivership in Florida. Under Florida Statutes (Chapter 631), the receivership can be for purposes of rehabilitation or liquidation.
The Receiver, as the rehabilitator, has wide discretion to prepare a plan to assist a company to resolve its difficulties. The Receiver is responsible for taking actions necessary to correct the conditions that necessitated the receivership. By statute and court order the Receiver is authorized to conduct all business of the insurer, may direct, manage, hire, and discharge employees, is authorized to manage the property and assets of the insurer as it deems necessary and may file for release of the company from receivership if rehabilitation efforts are successful and grounds for receivership no longer exist. When an insurance company cannot be rehabilitated, the Department petitions the court to place the company into liquidation.
In liquidation proceedings, the Receiver takes possession of the assets of the insurer and administers the assets. The Receiver also assists in the transition of policyholders to other insurance coverage, conducts investigations into the causes of the insolvency, collects all money due the insurer, litigates, as necessary, to recover any funds that may be owed to the insurer, sells assets such as real and personal property and evaluates and pays claims with available assets.