Radey’s receivership practice addresses the unique circumstances that arise when the Florida Department of Financial Services, Division of Rehabilitation and Liquidation, takes control of a financially troubled insurance company pursuant to the Insurers Rehabilitation and Liquidation Act. Learn more here. A receivership affects every entity in the insurance circle, not just the subject company – reinsurance companies, reinsurance brokers, agents, attorneys, and other vendors, to name just a few. Once a delinquency proceeding has been initiated, whether for rehabilitation, liquidation, or conservation, many complex and dynamic issues arise quickly – both in court and out. These issues include whether the Department has adequate legal and financial grounds for the receivership, the source of and entitlement to the assets comprising the insurer’s estate, reinsurance issues, the circumstances under which a person can obtain relief from the automatic stay imposed by the receivership court, intervention in the receivership proceeding, filing and proof of claims against the estate, and the priority of those claims, as well as many others.
While our receivership law practice is complemented by our broader insurance regulation and commercial litigation practice, the issues and challenges of receivership are unique. Once the State of Florida steps in and takes control of a licensed entity, a new stakeholder is involved and many new rules apply. The attorneys at Radey have specific and varied experience representing clients facing these challenges.