Filing Number: 596975
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| Filing Accepted: 11/24/2021 |
| Last/Business Name
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ARONESTY
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First Name |
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SCOTT |
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| Street Address
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16850 JOG ROAD, SUITE 106 |
| City, State Zip
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DELRAY BEACH,
FL
33446
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| Email Address
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HAIRBYSCOTT@AOL.COM |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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ARONESTY |
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First Name |
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SCOTT |
| Policy # * |
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9384830A1059H4 |
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Claim #* |
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59-21Z8-53V |
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Attorney is Applicable
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| Last Name* |
KELLAM
First Name *
CHRIS
Initial
W
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| Street Address* |
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3900 MILITARY TRAIL, SUITE 600 |
| City, State Zip* |
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JUPITER
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FLORIDA
33458
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| Email Address * |
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CKELLAM@KMWLEGAL.COM |
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| Insurer Type
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 Authorized Insurer
 Unauthorized Insurer
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| Insurer Name |
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| Insurer Name* |
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STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY
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| Insurer Name* |
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| Street Address* |
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| City, State Zip* |
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,
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NAIC Company Code 25178 |
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| Name of individual responsible for violation (if any):*
LATRICE PORTER
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| Type of Insurance
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Auto
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| Reason for Notice
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Claim Delay
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Unsatisfactory Settlement Offer
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Unfair Trade Practice
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Statutory provision(s) which the insurer allegedly violated.
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| 624.155(1)(b)(1) |
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Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.
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| 626.9541(1)(i)(3)(a) |
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Failing to adopt and implement standards for the proper investigation of claims.
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| 626.9541(1)(i)(3)(c) |
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Failing to acknowledge and act promptly upon communications with respect to claims.
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| 626.9541(1)(i)(3)(e) |
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Failing to affirm or deny full or partial coverage of claims, and, as to partial coverage, the dollar amount or extent of coverage, or failing to provide a written statement that the claim is being investigated, upon the written request of the insured within 30 days after proof-of-loss statements have been completed.
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| 626.9541(1)(i)(3)(f) |
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Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of a compromise settlement.
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Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
The specific policy language is found in policy number 9384830A1059H4, form 9810A, page 31, section 2. of Insuring Agreement. The section begins by indicating “We will pay for loss caused by collision to a covered vehicle.”
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Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
* This notice is given in order to perfect the right to pursue the civil remedy authorized by section 624.155, Florida Statutes.
*This Civil Remedy Notice is intended to comply with all requirements of section 624.155, Florida Statutes and Florida law interpreting same. If Insurer takes the position that it cannot respond to this Notice because information is missing, Complainant requests that Insurer advise Complainant immediately so that reasonable, substantive issues can be addressed.
Complainant Name: Scott Aronesty
Complainant Street Address: 16850 Jog Road, suite 106
Complainant City, State, Zip: Delray Beach, Florida 33446
Complainant Email Address: hairbyscott@aol.com
Complainant Type: Insured
Insured Name: Scott Aronesty
Insured Policy #: 9384830A1059H4
Insured Claim #: 59-21Z8-53V
Attorney Name: Christopher Kellam
Attorney Street Address: 3900 Military Trail, suite 600
Attorney City, State, Zip: Jupiter, Florida 33458
Attorney Email Address: ckellam@kmwlegal.com
Violation Insurer Type: Authorized Insurer
Violation Insurer Name: State Farm Mutual Automobile Insurance Company
Violation Type of Insurance: Auto
Violation Insurer Street Address: P.O. Box 106171
Violation Insurer City, State, Zip: Atlanta, Georgia 30348-6171
Person representing insurer: Latrice Porter
Reasons for Notice: Claim Delay
Unsatisfactory Settlement Offer
Unfair Trade Practice
Facts and Circumstances giving rise to the insurer’s violation:
On 07/10/2021, Complainant was involved in a motor vehicle accident. Complainant was at the time driving a 2022 Ferrari Roma (hereinafter “the Complainant’s Vehicle”). Complainant, through a State Farm insurance agent, submitted to State Farm a claim for collision coverage benefits. State Farm acknowledged the claim and assigned claim number 59-21Z8-53V.
The vehicle has since been in the possession of Ferrari of Fort to assess the damages and to determine whether the vehicle should be repaired or declared a total loss. Insurer has had open access to the vehicle.
The representative from Ferrari advised that a special adjuster to inspect the vehicle; the individual may have not been a representative of Insurer. Insurer did not advise or clarify for Complainant.
On 10/06/2021, Complainant’s attorney sent to Insurer email correspondence advising of his legal representation of Complainant. The substance of Complainant’s attorney’s email including the following: “Mr. Aronesty’s vehicle needs to be declared a total loss, and collision benefits need to be tendered, by no later than October 31, 2021. It is our understanding that the damages estimated so far total more than $130,000. There are additional damages to be added to the estimate that will clearly add tens of thousands of dollars to the total. Further, Mr. Aronesty has been forced to continue monthly payments of approximately $2,000, for a total of $6,000 since the accident, while State Farm presumably conducts its investigation. His next payment is due on November 1, 2021 and the claim needs to be settled and benefits tendered before this date. Even if repairs were possible, such repairs could take a year or more to complete.
Note that the value of the vehicle at this point, even it were repaired, would be significantly diminished. Unlike most vehicles, his was a luxury vehicle whose value is based in large part on its factory-produced condition. The fact that the car has sustained such significant damage means, in and of itself, that the value of the vehicle will never again even approach it’s purchase price. Similar Ferraris in good condition would otherwise hold their value.”
On 10/14/2021, Insurer called the office of Complainant’s attorney and left a message. Complainant’s attorney called back the same day to confirm his representation.
On 10/14/2021, Insurer sent directly to Complainant correspondence indicating that Insurer was still investigating the loss.
On 10/15/2021, Complainant’s attorney emailed Insurer requesting specific information as to why Insurer would continue to contact Complainant directly when Insurer was already aware that Complainant had retained legal counsel.
On 10/27/2021, Insurer called the office of Complainant’s attorney and left a message with the receptionist. The Complainant’s attorney immediately returned the call but had to leave a voicemail.
Complainant’s attorney attempted to follow up with Insurer by phone, with no success.
On 11/24/2021, Complainant’s attorney again emailed Insurer requesting a status and update. As of the filing of this Notice, Insurer has yet to respond to Complainant’s attorney.
On 11/24/2021, Complainant was in contact with the representative for Ferrari of Fort Lauderdale. The representative advised that Insurer spoke directly to representative rather than to Complainant’s attorney. Insurer advised representative that Insurer was offering approximately $67,000 to repair Complainant’s vehicle. The Ferrari representative was astonished and reminded Insurer that the preliminary estimate was for more than $136,000 in damages, a number that did not include the cost to repair parts of the interior.
To date, Complainant’s attorney has yet to receive even a single piece of paper or a single email from Insurer regarding this loss. Neither Complainant nor Complainant’s attorney has received from Insurer an estimate of damages or any indication as to how Insurer determined the amount it intends to cover.
Measure of damages:
Purchase price: 273,000 (approximately)
Preliminary Estimate (not including a complete estimate of interior damage): approximately $136,000
Monthly payments on vehicle: approximately $2,000 per month
Estimate on time to repair vehicle once repairs are approved and begin: more than 1 year
Diminished value: amount is determined based on the time at which the claim is resolved, but the information and analysis are equally available to Insurer.
Reason for notice:
The Complainant is covered by a policy with State Farm Mutual Automobile Insurance Company which affords collision coverage applicable to the subject crash. State Farm Mutual Automobile Insurance Company has been provided with information from the Ferrari repair facility and has had four (4) months to complete any inspections and investigation. To date, State Farm Mutual Automobile Insurance Company has failed to confirm with Complainant coverage, has failed to make a decision on payment of the subject claim or otherwise failed to convey to Complainant or his attorney Insurer’s decision, failed to contact Complainant through his attorney once Insurer knew of the attorney representation, and has failed to timely communicate with Complainant through his attorney.
(1) Section 624.155(1)(b)(1) Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.
Brief summary of violation – In addition to the above, Complainant’s vehicle was damaged four (4) months ago. Both Complainant and Complainant’s attorney made efforts to have Insurer either make or communicate a decision on the claim. Complainant learned of a alleged offer made on the claim through a representative of Ferrari of Fort Lauderdale. Notably, the subject vehicle is a 2022 Ferrari, purchased new, that was involved in a 2021 crash. Insurer should have by now recognized that the subject vehicle could not and should be repaired in its current state. Further, Complainant has been advise that repairs would take more than one (1) year to complete once they begin. Complainant is paying approximately $2,000 per month for a vehicle that Insurer should have deemed a total loss within 30 days of the crash.
(2) Section 626.9541(1)(i)(3)(a) Failing to adopt and implement standards for the proper investigation of claims
Brief summary of violation – In addition to the above, Insurer failed to procure or provide to Complainant evidence contradicting the Complainant’s chosen repair facility, which is also the entity from which the Complainant purchased the subject vehicle. Insurer failed to conduct a substantive investigation before making the decision to deny full payment of the claim. Insurer has not provided to Complainant enough information to fully explain its delay or position thus far. Additionally, Complainant does not have access to Insurer’s complete file at this time, and additional facts may come to light in support of this assertion.
(3) Section 626.9541(1)(i)(3)(c) Failing to acknowledge and act promptly upon communications with respect to claims
Brief summary of violation – In addition to the above, Insurer has yet to send to Complainant’s attorney any written communication. Insurer failed to timely return Complainant’s attorney’s phone calls and did not respond to emails. Complainant has not received a current estimate or offer.
(4) Section 626.9541(1)(i)(3)(e) Failing to affirm or deny full or partial coverage of claims, and, as to partial coverage, the dollar amount or extent of coverage, or failing to provide a written statement that the claim is being investigated, upon the written request of the insured within 30 days after proof-of-loss statements have been completed
Brief summary of violation – In addition to the above, In addition to the above, Complainant’s vehicle was damaged four (4) months ago. Both Complainant and Complainant’s attorney made efforts to have Insurer either make or communicate a decision on the claim. Complainant learned of a alleged offer made on the claim through a representative of Ferrari of Fort Lauderdale. Notably, the subject vehicle is a 2022 Ferrari, purchased new, that was involved in a 2021 crash. Insurer should have by now recognized that the subject vehicle could not and should be repaired in its current state. Further, Complainant has been advise that repairs would take more than one (1) year to complete once they begin. Complainant is paying approximately $2,000 per month for a vehicle that Insurer should have deemed a total loss within 30 days of the crash. Insurer has not provided to Complainant enough information to fully explain its delay or position thus far. Additionally, Complainant does not have access to Insurer’s complete file at this time, and additional facts may come to light in support of this assertion.
(5) Section 626.9541(1)(i)(3)(f) Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of a compromise settlement
Brief summary of violation – In addition to the above, In addition to the above, Complainant’s vehicle was damaged four (4) months ago. Both Complainant and Complainant’s attorney made efforts to have Insurer either make or communicate a decision on the claim. Complainant learned of a alleged offer made on the claim through a representative of Ferrari of Fort Lauderdale. Insurer has yet to send to Complainant’s attorney any written communication. Insurer failed to timely return Complainant’s attorney’s phone calls and did not respond to emails. Complainant has not received a current estimate or offer. Notably, the subject vehicle is a 2022 Ferrari, purchased new, that was involved in a 2021 crash. Insurer should have by now recognized that the subject vehicle could not and should be repaired in its current state. Further, Complainant has been advise that repairs would take more than one (1) year to complete once they begin. Complainant is paying approximately $2,000 per month for a vehicle that Insurer should have deemed a total loss within 30 days of the crash. Insurer has not provided to Complainant enough information to fully explain its delay or position thus far. Additionally, Complainant does not have access to Insurer’s complete file at this time, and additional facts may come to light in support of this assertion.
Measure of Cure: Insurer may resolve this violation completing the following within 60 days: (1) confirming in writing that the subject policy provides to Complainant coverage for the subject loss; (2) completing any further estimates or inspections Insurer decides are needed to complete its evaluation of this claim; (3) confirming in writing whether Insurer decides Complainant’s damages are covered as a repairable plus diminution of value or as a “total loss” for which the actual cash value is to be paid; and (4) tendering to Complaint policy benefits in the amount due under the policy.
Reference to specific policy language:
The specific policy language is found in policy number 9384830A1059H4, form 9810A, page 31, section 2. of Insuring Agreement. The section begins by indicating “We will pay for loss caused by collision to a covered vehicle.”
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The submitter hereby states that this notice is given in order to perfect the rights of the
person(s) damaged to pursue civil remedies authorized by Section 624.155, Florida Statutes.
Before submitting a Notice using this system, please verify that all text has been entered
correctly and completely. Once the Notice has been submitted, the text cannot be changed
or deleted.
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DFS-10-363
Rev. 10/14/2008
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