Filing Number: 786814
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| Filing Accepted: 10/14/2024 |
| Last/Business Name
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TAPP
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First Name |
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FRANK AND PAMELA |
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| Street Address
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2755 BLUEBIRD AVE |
| City, State Zip
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NORTH PORT,
FL
34286
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| Email Address
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PAMMYQ88@GMAIL.COM |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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TAPP |
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First Name |
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FRANK AND PAMELA |
| Policy # * |
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EDH4026574-05 |
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Claim #* |
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EDI951191 |
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Attorney is Applicable
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| Last Name* |
FRANKEL
First Name *
SCOTT
Initial
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| Street Address* |
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800 EAST BROWARD BOULEVARD, SUITE 510 |
| City, State Zip* |
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FORT LAUDERDALE
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FLORIDA
33301
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| Email Address * |
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SF@WEKLAW.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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EDISON 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 12482 |
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| Name of individual responsible for violation (if any):*
BRIDGETTE BROOKS; MASON MINISTER
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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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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)(2) |
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Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made.
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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)(b) |
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Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
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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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Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
Policy language:
AGREEMENT
We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy.
PROPERTY COVERAGES
A. Coverage A – Dwelling
1. We cover:
a. The dwelling on the “residence premises” shown in the Declarations, including structures attached to the dwelling; and
PERIL INSURED AGAINST
1. We insure for direct physical loss to the property described in Coverages A, B and C caused only by the peril of windstorm or hail unless the loss is excluded in EXCLUSIONS.
C. Loss Settlement
In this Condition C., 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.8. Ordinance Or Law under PROPERTY COVERAGES.
I. Loss Payment
We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Any loss payment will be paid to you and them, as each interest appears. Loss will be payable:
1. 20 days after we receive your proof of loss and reach written agreement with you; or
2. 60 days after we receive your proof of loss and: a. There is an entry of a final judgment; or b. There is a filing of an appraisal award or a mediation settlement with us.
3. Within 90 days after we receive notice of an initial, reopened, or supplemental property insurance claim from you, where for each initial, reopened, or supplemental property insurance claim, we shall pay or deny such claim or portion of such claim, unless there are circumstances beyond our control which reasonably prevent such payment. Paragraph 3. above does not form the sole basis for a private cause of action against us.
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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.
Frank and Pamela Tapp (“Insured”) purchased an insurance policy ("Policy") from Edison Insurance Company (“Carrier”) with effective coverage on the date of loss, on or about September 28, 2022, and Policy number EDH4026574-06 to insure their property located at 2755 Bluebird Ave, North Port, FL 34286 ("Property").
On or about September 28, 2022, the Property suffered severe wind damage to the roof, exterior and interior as a result of the passing of Hurricane Ian ("Loss"). Upon becoming aware of the damage to the Property, the Insured reported damage to the Property as a result of the Loss. The Carrier acknowledged the claim and assigned claim number EDI951191 ("Claim") to the Loss.
During its investigation of the claim, the Carrier first sent a field adjuster. After the field adjuster’s inspection, he rendered an estimate, but failed to take into account numerous areas of damage, such as the sliding glass doors and cracked floor tile, along other things. The Carrier happily relied upon the field adjuster’s low-ball estimate and initially paid an unacceptable amount to cover all of the damages to put the Property back into its pre-loss condition, $12,853.09.
Thereafter, due to the Insureds lack of familiarity with homeowners’ claims and lack of confidence in their Carrier to abide by the insurance contract after receiving the initial payment, the Insured contacted a public adjusting firm, SoFlo Public Adjusters (“SoFlo”), to inspect the property and provide direction as to how to handle the claim and quantify the damages observed. After confirming the presence of damage to the Property, SoFlo signed up the Insured and promptly communicated its involvement with the Carrier, acting as the Insured’s representative from that point forward. Then, SoFlo requested the Carrier to perform a reinspection due to the damages unaccounted for in the initial field adjuster’s estimate. Mr. Mason Minister inspected the property on behalf of the Carrier, rendered a new estimate, and two additional payments were made in the amount of $112.81 and $224.74 respectively. This acted like a slap in the face wherein the Carrier may have paid more to the adjuster to reinspect than the additional payment made on the claim, when it was clear the Carrier was missing areas of damage. It is egregious that the Carrier continued its behavior of intentionally excluding areas of damage that the Carrier’s insureds are stating were damaged directly due to the storm, while the Carrier has little to no evidence saying otherwise. The Carrier is required to give the benefit of the doubt to its Insureds and act in good faith in its adjusting of the subject claim. Here, however, the Carrier failed to do so, and instead choose to ignore damage and underpay its Insureds to the delight of its shareholders.
Furthermore, due to the Carrier’s efforts to withhold information relating to its investigation, which has continued after the Insured’s were forced to hire an attorney and file a lawsuit against the Carrier, the Insureds are less able to specifically state all individuals involved in the foregoing allegations of bad faith. The Insureds plan on filing a renewed Civil Remedies Notice once depositions are compelled by the Court and the Insureds discover more specifics on the Carrier’s mishandling of the claim.
Since the Insureds became aware of the damages to the Property, they have acted promptly in reporting the claim and mitigating further damage to the Property. They have cooperated in all ways possible with every request of the Carrier. The Insureds have fully complied with all applicable Policy provisions requiring cooperation with the investigation; however, the Carrier has unequivocally failed to properly adjust this Claim, as further elaborated above. Rather than paying the actual damages and/or trying to settle with the Insured, the Carrier has continued its pre-suit failures to act in good faith into litigation, delaying any prompt resolution of the claim. The Carrier has not attempted, in good faith, to settle this claim when, under the circumstances, it could and should have done so had it acted fairly and honestly toward the policyholders and with due regard to the policyholders' interests. As a result of this incident, the Insured has suffered damage to the building on the subject Property and loss of use of the Property and possessions therein.
As a direct consequence of the Carrier’s failure to adjust this Loss in good faith and make any payment, the Insured continues to be without adequate compensation for the damages sustained at the Insureds' Property more than twenty-four (24) months ago.
By stating the above detailed facts, it is clear that the Carrier has violated the following Florida statutes:
• 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 Insureds and with due regard for their interest;
• The Carrier had no evidence that their Insureds weren’t being truthful that their tile flooring was damaged as a result of Hurricane Ian, however, it continues to refuse to pay for its repairs.
• 624.155(1)(b)(2) Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made.
• Multiple times the Carrier sent coverage decision letters and plainly attached excerpts from the Policy without fully explaining how they apply in this claim and why those provisions are being invoked to withhold payment from their Insureds
• 624.155(1)(b)(3) 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;
• 626.9541(1)(i)(3)(a) Failing to adopt and implement standards for the proper investigation of claims;
• 626.9541(1)(i)(3)(b) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
• 626.9541(1)(i)(3)(c) Failing to acknowledge and act promptly upon communications with respect to claims.
• 626.9541(1)(i)(3)(d) Denying claims without conducting reasonable investigations based upon available information.
• 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.
• 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
• Multiple times the Carrier sent coverage decision letters and plainly attached excerpts from the Policy without fully explaining how they apply in this claim and why those provisions are being invoked to withhold payment from their Insureds
To date, the Carrier has acted in bad faith, failed to provide coverage under the Policy to the Insured. The Insured's property continues to be in disarray as the Insured is without funds to put their property into its pre-loss condition. As a direct result of Carrier’s drastic underpayment of the Claim and breach of the Florida Statutes, the Insureds were forced to seek the help of licensed professionals to assist them, including a public adjuster and legal counsel. Due to the amount of time that has passed since the date of loss and the information discussed above, there is irrefutable evidence that Carrier knowingly and intentionally, and in bad faith delays the settlement process in order to further disadvantage the Insureds. The financial detriment caused to the Insureds is a direct result of the Carrier’s reckless treatment of the claims process. The Insured submitted all documents requested in a timely fashion, made their property available for inspection, submitted estimates and requests. However, the Carrier failed at every step of the process to adequately establish or identify the basis of its gross mismanagement of the claim.
To deny the Insured the benefit clearly due and owing under the Policy, for which they have time and time again been making premium payments for and after they have satisfied all of their obligations is morally and ethically reprehensible, and reeks of Unfair Claims Practice and Bad Faith. Upon information and belief, the aforementioned actions complained of, among others, were made by the Carrier so often as to constitute a general business practice, evidencing a motive to enhance the Carrier’s profits, and designed to cause a detrimental effect to its policyholders. The above clearly depicts that the Carrier adjusted this claim in bad faith, continue to act in bad faith towards its Insured, and that the Carrier is in direct violation of Unfair Claims Practices.
This notice is given in order to perfect the right to pursue the civil remedy authorized by Section 624.155, Florida Statutes, should the Carrier fail to cure the violations set forth in this Civil Remedy Notice within the given cure period. Therefore, to cure the defects outlined in this Civil Remedy Notice, the Carrier must: (1) Immediately tender 100,000.00 in US dollars to the Insured which is fairly owed to the Insured under the insurance policy and would reasonably compensate the Insured in order to put the Property back to its pre-loss condition; (2) Agree to reimburse the Insured for interest on the amount of benefits that was found to be due and owing to the Insured, relating back to the date of loss; (3) if the Carrier does not agree with the amount listed above to reasonably compensate the Insured for the Loss, then the Insured demands the Carrier to reach out to the Insured’s representative to negotiate in good faith to resolve this claim amicably.
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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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