Filing Number: 685305
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| Filing Accepted: 3/28/2023 |
| Last/Business Name
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IRANI
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First Name |
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LOUAY AND EDUGIVES |
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| Street Address
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5244 WATERVISTA DIRVE |
| City, State Zip
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ORLANDO,
FL
32821
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| Email Address
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LOUAYAJAMI@YAHOO.COM; EBELEN09@YAHOO.COM |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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IRANI |
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First Name |
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LOUAY AND EDUGIVES |
| Policy # * |
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76593-29-90 |
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Claim #* |
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7005672211-1 |
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Attorney is Applicable
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| Last Name* |
OLADIPO
First Name *
A.ABIDEMI
Initial
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| Street Address* |
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15257 AMBERLY DRIVE |
| City, State Zip* |
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TAMPA
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FL
33647
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| Email Address * |
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AOLADIPO@MSO.LAW |
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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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TRUCK INSURANCE EXCHANGE
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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 21709 |
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| Name of individual responsible for violation (if any):*
TRUCK INSURANCE EXCHANGE, FARMERS INSURANCE COMPANY, AARON KRANNAWITTER, ALONG WITH ALL ADJUSTERS, SUPERVISORS, MANAGERS, AND INDIVIDUALS ASSOCIATED WITH OR RETAINED BY THE INSURER IN THE CLAIM.
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| Type of Insurance
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Residential Property & Casualty
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| Reason for Notice
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Claim Denial
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Claim Delay
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Unsatisfactory Settlement Offer
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Unfair Trade Practice
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Non-renewal
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Other
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Failure to Properly Investigate Claim and with Due Regard to Insureds’ Interest. Failure to Acknowle
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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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| 624.155(1)(b)(3) |
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Except as to liability coverages, failing to promptly settle claims, when the obligation to settle a claim has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage.
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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)(d) |
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Denying claims without conducting reasonable investigations based upon available information.
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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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| 626.9541(1)(i)(3)(g) |
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Failing to promptly notify the insured of any additional information necessary for the processing of a claim.
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| 626.9541(1)(i)(3)(h) |
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Failing to clearly explain the nature of the requested information and the reasons why such information is necessary.
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| 626.9541(1)(i)(3)(i) |
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Failing to pay personal injury protection insurance claims within the time periods required by s. 627.736(4)(b).
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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 Insured is not in possession of a complete copy of their insurance policy from FARMERS INSURANCE COMPANY (“FARMERS”) as underwritten by TRUCK INSURANCE EXCHANGE (“TIE”), therefore, this section is completed, the best it can be, without a complete copy of the policy.
AGREEMENT
You agree:
1. to pay premiums when due; and
2. to comply with all applicable terms of this policy.
In return, we will insure you for the coverages and limits as shown
in this policy. This policy includes the Declarations and any
endorsements.
SECTION I – PROPERTY COVERAGES
A. Coverage A- Dwelling
1. Under Coverage A - "dwelling" we cover:
a. The "dwelling" on the "residence premises" shown in
the Declarations by address, including structures
attached to the "dwelling"; and
b. Materials and supplies located on or next to the
"residence premises" used to construct, alter or
repair the "dwelling" or other structures on the
"residence premises".
2. We do not cover land, including land or fill on which the
"dwelling" is located.
C. Coverage C - Personal Property
1. Covered Property
We cover personal property owned or used by an
"insured" while it is anywhere in the world. After a loss
and at your request, we will cover personal property
owned by:
a. Others while the property is on the part of the
"residence premises" occupied by an "insured"; or
b. A guest or a "residence employee", while the property
is in any residence occupied by an "insured".
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D. Coverage D - Loss of Use
The limit of liability for Coverage D is the total limit for the
coverages in 1. Additional Living Expense, 2. Fair Rental
Value and 3. Civil Authority Prohibits Use below.
1. Additional Living Expense
If a loss covered under Section I makes that part of the
"residence premises" where you reside not fit to live
in, we cover any necessary increase in living expenses
incurred by you so that your household can maintain its
normal standard of living.
Payment will be for the shortest time required to repair
or replace the damage or, if you permanently relocate,
the shortest time required for your household to settle
elsewhere, but in no event for more than 12 months.
We will pay no more than one-third (1 / 3) of the Coverage
D limit per any 30 day period.
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E. Additional Coverages
We insure you for the Additional Coverages as described
below except as otherwise shown in the Declarations.
Unless otherwise expressly stated, the following Additional
Coverages are subject to all the policy terms, exclusions,
deductibles, and conditions.
1. Debris Removal
a. We will pay your reasonable expense for the removal
of:
(1) Debris of covered property if a Peril Insured
Against that applies to the damaged property
Causes the loss; or
(2) Ash, dust or particles from a volcanic eruption that
has caused direct loss to any covered property.
This expense is included in the limit of liability that
applies to the damaged property. If the amount to be
paid for the actual covered damage to the property
plus the debris removal expense is more than the limit
of liability for the damaged property, an additional 5%
of that limit is available for such expense.
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Section I - Perils Insured Against
A. Coverage A- Dwelling and Coverage B - Other Structures
1. We insure against accidental direct physical loss or
damage to the property described in Coverages A and B,
unless the loss is excluded in Section - I Exclusions.
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B. Coverage C - Personal Property
We insure for accidental direct physical loss to the personal
property described in Coverage C caused by any of the
following perils, unless the loss is excluded in Section I -
Exclusions:
1. Fire or Lightning
2. Windstorm or Hail
This peril includes loss to watercraft of all types and their
trailers, furnishings, equipment, and outboard engines or
motors, only while inside a fully enclosed building.
This peril does not include loss to the property contained
in a building caused by rain, snow, sleet, hail, sand or
dust unless the direct force of wind or hail damages the
building causing an opening in a roof or wall and the
rain, snow, sleet, hail, sand or dust enters through this
opening.
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D. Loss Settlement
In this Condition D., the terms "cost to repair or replace"
and "replacement cost" do not include the increased costs
incurred to comply with the enforcement of any ordinance
or law, except to the extent that coverage for these increased
costs is provided in E.10. Ordinance or Law under Section E.
Additional Coverages.
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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.
Farmers Insurance Company (“Farmers”) issued policy number 76593-29-90 (“Policy”) to Louay and Edugives Irani (the “Insureds”) for their home located at 5244 Watervista Drive, Orlando, FL 32821 (the “Insured Property”). The policy is underwritten by Truck Insurance Exchange. The Policy had effective dates of June 29, 2022, to June 29, 2023. The Policy includes Coverage A – Dwelling limits of $384,000.00; Coverage B – Separate Structures limits of $19,200.00; Coverage C – Personal Property limits of $96,000.00; and Coverage D – Loss of Use limits of $38,400.00. The policy includes a 2% hurricane deductible totaling $7,680.00 and a $2,500.00 deductible applies to all other losses.
On September 28, 2022, Hurricane Ian, a catastrophic Category 4 hurricane struck southwest Florida with winds in excess of 150 mph. Hurricane Ian was regarded as the fifth strongest hurricane to strike the United States as measured by windspeed. The historic hurricane then moved into central Florida with its hurricane-force winds and torrential rainfall causing severe damage to central Florida, including to Orlando. On that same day, then Florida Insurance Commissioner David Altmaier issued Emergency Order No. 300997-22-EO (“Emergency Order”) which provided for the suspension of certain rules and statutes based on the state of emergency stemming from the natural disaster that was Hurricane Ian. The Emergency Order provided an extension of grace periods, limitations on cancellations and non-renewals, and other provisions. Specifically, the Emergency Order provided “[i]n addition to the provisions of paragraph (A) of this Emergency Order, pursuant to Section 627.4133(2)(d)1., Florida Statutes, an insurer may not cancel or non-renew a personal residential or commercial residential property insurance policy covering property damaged as a result of Hurricane Ian located in any Florida county, for a period of 90 days after the dwelling has been repaired, except as provided in Section 627.4133(2)(d)(2)., Florida Statutes.”
On or about September 28, 2022, the Insured Property suffered direct physical damage as a result of Hurricane Ian. Specifically, the high winds damaged the roofing system and structure of the Insured Property, allowing rain to enter the interior of the property resulting in damage to the interior of the property. Further, the Insured Property sustained damage to the garage, dining/kitchen, and to the Insureds’ personal property. The Policy provides coverage for damage to the Insured Property caused by a windstorm/hurricane. The Insureds provided their insurance company, Farmers prompt notice of the loss. Moreover, the Insureds provided Farmers and its agents unfettered access to inspect the Insured Property.
On February 9, 2023, The Insureds retained the services of Public Adjuster, Danyer Rodriguez of Claims Advocate Resolution Experts, LLC (“C.A.R.E”) to assist them with the claims process and in presenting their claim to Farmers. On February 14, 2023, C.A.R.E sent Farmers their letter of representation and a request for a certified copy of the policy within 10 business days and attaching C.A.R.E.’s W-9 and requesting information regarding the assigned adjuster so that an inspection could be scheduled. On that same date, Farmers sent a letter to the Insureds confirming receipt of the Insureds’ claim. On February 15, 2023, having been aware of the Emergency Order and of the Insureds’ Hurricane Ian claim, Farmers sent the Insureds a Notice of Non-Renewal. The Non-Renewal Notice advised that the basis for the non-renewal was Farmers had reviewed the home policy and determined certain factors do not meet Farmer’s eligibility rules. The reason cited for the non-renewal was “exposure management.” As a result of this unlawful action by Farmers, the Insureds’ Policy is set to non-renew on June 29, 2023 at 12:01 a.m., leaving the Insureds with an inability to seek other coverage to protect and insure their home during the middle of hurricane season. Farmers’ actions are unconscionable and quintessential bad faith conduct. It is believed that Farmers took this action to punish the Insureds for daring to file a claim and seeking the indemnity they bargained for and were due under the Policy. It is also believed that Farmers wrongfully non-renewed the homeowners insurance policies of other Floridians despite the Emergency Order which clearly and unequivocally prevents Farmers from non-renewing the insurance policies of Floridians in any county if their home sustained damage as a result of Hurricane Ian for 90 days after the dwelling has been repaired.
On February 16, 2023, Aaron Krannawitter, a catastrophe Special Claims Representative, for Truck Insurance Exchange, sent a letter to C.A.R.E., on behalf of Farmers, acknowledging receipt of C.A.R.E.’s letter of representation and advising that a certified copy of the policy will be provided once received. Unfortunately despite that promise to the Insureds’ representative, as of the filing date of this Civil Remedy Notice, Farmers has failed to provide a copy of the certified policy, again failing to meet Farmers’ obligations under Florida law regulating the conduct of insurance carriers operating within the state. On February 20, 2023, Mr. Krannawitter inspected the Insured Property on behalf of Farmers to assess all of the damages to the Insured Property resulting from Hurricane Ian and to estimate the total repair costs for covered damage to the Insured Property caused by the hurricane. Mr. Krannawitter prepared an estimate totaling $3,786.57 for dwelling damages. Mr. Krannawitter confirmed damage to the garage, landing, living room, and windows of the Insured Property caused by Hurricane Ian. Unfortunately, Mr. Krannawitter either negligently failed to identify all of the damage to the Insured Property, was unqualified to investigate all of the damage and determine the cause of the damage to the Insured Property, and/or willfully ignored damage to the Insured Property and/or willfully failed to estimate for covered damage to reduce the amount of the Insureds’ claim and payment for covered damages.
Also on February 20, 2023, Mr. Krannawitter sent a letter to C.A.R.E. advising C.A.R.E. that Farmers was declining coverage for part of the Insureds’ claim and that Farmer determined that no payment was due for the remaining part of the claim as the estimate for repairs did not exceed the amount of the Insureds’ hurricane deductible. Enclosed with the letter was a copy of Mr. Krannawitter’s repair estimate. Mr. Krannawitter further stated that he determined that there was no wind damage to the roof. Mr. Krannawitter opined that the observed damage to the Insured Property that resulted in damage was caused solely by wear and tear, and not the high sustained winds of Hurricane Ian. Mr. Krannawitter did not provide the Insureds with an explanation as to why their roof did not leak prior to being impacted by the high winds of Hurricane Ian. Despite acknowledging damage to the Insured Property and applying the hurricane deductible, Farmers still unlawfully maintained its non-renewal of the Policy. On February 22, 2023, the Insureds retained Nutravil Inc, certified roofing contractor, to replace the Insured Property roof structure. On March 6, 2023, C.A.R.E. prepared an estimate of the Insured Property dwelling damages for $105,026.47 and contents damages for $295.22 total damages $105,321.69. The Insureds’ representative sent emails on March 8, 2023 providing Farmers with a sworn statement in proof of loss in the amount of $97,641.69 and the detailed C.A.R.E. repair estimate. Farmers has failed to respond to the SPOL within the time proscribed by Florida law.
Undeniably, in this claim, and as a general business practice, Farmers hires independent adjusters, appraiser, engineers, and other experts, for the specific purpose of obtaining opinions that will deny and or decrease coverage to the detriment of its insureds so that Farmers can increase profits. Further, in this claim, and as a general business practice, Farmers underestimates, or “low-ball’s,” the value of the insureds’ claim. Based on the damages to the dwelling and the underestimation of damages by Farmers, the Insureds were required to adjust their own loss. On March 7, 2023, the Insureds’ counsel sent a letter of representation to Farmers and requested all claim documents as well as a copy of the policy and loss runs statement. Regrettably, even with the involvement of legal counsel, Farmers repeatedly failed to acknowledge or act promptly with regards to communications from its Insureds and their counsel in direct violation of section 627.70131(1)(a), Florida Statutes, and Rule 69O-166.024(3) of the Florida Administrative Code. As a general business practice, Farmers repeatedly violates section 627.70131(1)(a), by its constant failure to review and acknowledge a communication within fourteen (14) calendar days.
As of the date of this Civil Remedy Notice, continuing its egregious actions in neglecting its duties and responsibilities to the Insureds, Farmers has failed to furnish the Insureds or their legal counsel documentation requested, including a copy of the Policy as requested.
Section 624.02, Florida Statutes, defines “insurance” as a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. Inherent in that definition is the fact that payment must be made timely and promptly so that the insured may mitigate their damages and be put back into the position they were in prior to the loss as quickly as possible. Farmers has grossly breached this duty. The Insureds were, and still are, forced to expend out-of-pocket monies to submit their insurance claim, e.g., retaining legal counsel and other experts to force Farmers to honor its obligations under the insurance policy and to pay all the insurance proceeds due and owing them. Farmers has refused and/or failed to tender the insurance proceeds due and owing to the Insureds. Farmers’ failure and refusal to address the contractual damages in this claim has resulted in significant financial hardship and extra-contractual/consequential damages. Thus, when an insurer breaches an insurance contract, the insured “is entitled to recover more than the pecuniary loss involved in the balance of the payments due under the policy” in consequential damages, provided the damages “were in contemplation of the parties at the inception of the contract.” Life Inv’rs Ins. Co. of Am. v. Johnson, 422 So. 2d 32, 34 (Fla. 4th DCA 1982). In T.D.S. Inc. v. Shelby Mutual Insurance Co., the Eleventh Circuit noted that Florida courts “allow recovery of [consequential] damages if they were in the contemplation of the parties at the time of the creation of the insurance contract.” 760 F.2d 1520, 1532 n.11 (11th Cir. 1985). Similarly, in Rondolino v. Northwestern Mutual Life Insurance Co., the court held that “[i]f a party can prove loss of profits [from breach of an insurance contract] with reasonable certainty, then damages will be awarded.” 788 F. Supp. 553, 555 (M.D. Fla. 1992). While T.D.S. and Rondolino are federal cases, courts have found them to be well-reasoned and to be consistent with the opinion in Travelers Insurance Co. v. Wells, which held that in a claim for breach of an insurance contract, “[c]onsequential or resulting collateral damage may . . . be recovered if it can be sufficiently proved.” 633 So. 2d 457, 461 (Fla. 5th DCA 1993).
Farmers’ refusal and/or failure to settle the insurance claim when under all circumstances it could have and should have done so had it acted fairly and honestly towards its insureds is wrongful conduct. Furthermore, the Insureds contend that Farmers’ adjusters and/or agents and/or appraisers and/or representatives financially benefit from such wrongful conduct. As a direct and proximate cause of Farmers’ egregious failure to tender the full amount of insurance proceeds, the Insureds are unable to complete the required repairs. Farmers continued failure to address the full cost of repairs illustrates Farmers efforts to obfuscate its contractual obligation creates an unnecessarily insufferable financial burden on the Insureds.
In Florida, the work of adjusting insurance claims engages the public trust. Farmers has breached the public’s trust by its adjustment of the Insureds’ claim of loss. Farmers has failed to create and implement adequate guidelines for the proper investigation and evaluation of claims, claims handling, and for training and supervision of employees resulting in statutory violations as set forth above. Farmers has failed and/or refused to thoroughly, accurately, and completely investigate and evaluate the Insureds’ claim for damages. Farmers has failed to promptly settle the Insureds’ claim when the obligation to settle the insurance claim had become reasonably clear. To date, notwithstanding the Insureds’ pleas otherwise, Farmers has continued to refuse to acknowledge its obligation to conduct a proper investigation. Further, Farmers has failed to make a coverage determination as to any aspect of the claim, including for damage to the interior of the property that it inspected months ago and that were caused by the direct impact of Hurricane Ian.
Moreover, Farmers has not attempted in good faith to settle the Insureds’ claim when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its Insureds and with due regard for their interests. Farmers has done everything possible to delay and/or deny the claim. Furthermore, Farmers is required to properly investigate and adjust claims and cannot place that burden upon the insureds. This was made clear by the appellate court and the Florida Supreme Court in Allstate Indemnity Co. v. Ruiz, 899 So. 2d 1121 (Fla. 2005)(“The Legislature has clearly chosen to impose on the insurance companies a duty to use good faith and fair dealing in processing and litigating the claims of their insureds…”). Farmers was timely put on notice of the Insureds’ loss and claim for damages. The Insureds have complied with all of Farmers’ requests to date and the carrier has still failed to treat this claim with good faith. This intentional delay with the claim has led to direct prejudice of the Insureds, who continue to be held hostage unless/until Farmers engages in good faith claims handling. Even though well more than 90 days have passed since the date the claim was reported, Farmers has still refused to fully pay the amount owed under the policy.
It is clear that Farmers is not treating the Insureds with good faith claims conduct; failing to pay a claim clearly owed; not adjusting the claim and evaluating the loss properly, promptly and fairly to provide full and prompt indemnity to the Insureds; and ignoring the Insureds’ pleas for assistance; failing to implement proper standards for the adjustment and investigation of claims its adjusters and placing the Farmers’ interests before the Insureds interests; refusing to pay the full amount owed to the Insured despite the fact that Farmers has been on notice of the damages and looking for ways to delay and/or deny full recovery to the Insured, when a reasonable carrier in a similar position would have tendered a full payment in accordance with both the policy language and statutory requirements. Farmers’ actions are in violation of Sections 624.155(1)(b)(1), 624.155(1)(b)(3), 626.9541(1)(i)(3)(a), 626.9541(1)(i)(3)(c), 626.9541(1)(i)(3)(d), 626.9541(1)(i)(3)(e), 626.9541(1)(i)(3)(f), 626.9541(1)(i)(3)(g), 626.9541(1)(i)(3)(h), 626.9541(1)(i)(3)(i), Florida Statutes.
All of the aforementioned are part of what appears to be an ongoing pattern and practice of behavior by Farmers that demonstrates a wanton and reckless disregard for insureds’ rights and a pattern and practice of bad faith claims practices to its insureds across the state of Florida. Therefore, to cure the defects outlined in this Civil Remedy Notice, Farmers must: (1) Create and implement adequate guidelines for the proper investigation and evaluation of these type of claims and for the training and supervision of employees, which will avoid future statutory violations as set forth above, and prevent this from occurring in the future; (2) Farmers must create and implement adequate guidelines for the proper investigation and evaluation of these type of claims and for the training and supervision of employees with regard to these type of claims to ensure that the claims handling procedure with regard to these types of losses are adequate to prevent other insureds from being treated unfairly and wrongfully; (3) Farmers must tender payment to the Insureds in the amount of $287,887.75 for damages to the Insured Property per C.A.R.E.’s estimate totaling $105,321.69, less the applicable deductible, plus all other contractual obligations owed, fees, costs and interest pursuant to section 627.70131(5)(a), Florida Statutes; and (4) Farmers must act fairly and honestly towards its Insureds and with due regard for their interests in attempting to settle its Insureds’ claim. (5) Farmers must immediately rescind its non-renewal of policy issued on February 15, 2023 and must not non-renew the Policy until 90 days after repairs are completed to the Insured Property as required by the Emergency Order.
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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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