Civil Remedy Notice of Insurer Violations
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Filing Number:     796044
Filing Accepted:  12/9/2024
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Complainant
Last/Business Name *  
SCHNECK   First Name   JUSTIN
Street Address * 8330 BOYLA COURT
City, State Zip * WINDERMERE, FL 34786
Email Address * INTAKE2@THEKRFIRM.COM
Complainant Type: * Insured
Insured
Last/Business Name*   SCHNECK   First Name   JUSTIN
Policy # * 59-C2-G127-3 Claim #* 59-70B0-91F
Attorney
Attorney is Applicable
Last Name* KADIR First Name * ALI Initial A.
Street Address* 986 DOUGLAS AVE, STE. 102
City, State Zip* ALTAMONTE SPRINGS , FL 32714
Email Address * INTAKE2@THEKRFIRM.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   STATE FARM FLORIDA INSURANCE COMPANY
NAIC Company Code 10739
 
Name of individual responsible for violation (if any):* BRI TAYLOR, ZAVIER E. JORDAN, DANNY RUTH, KYLE PURDY, DAVID [LAST NAME UNKNOWN], JOSEPH [LAST NAME UNKNOWN], HANCOCK CLAIMS CONSULTANTS HOLDINGS INC., AND ALL STATE FARM CLAIMS ADJUSTERS, EMPLOYEES, REPRESENTATIVES, AGENTS, VENDORS, AND/OR ENGINEERS
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
Claim Denial
Claim Delay
Unsatisfactory Settlement Offer
Unfair Trade Practice
Other : Misrepresentation
* Statutory provision(s) which the insurer allegedly violated.
 
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.
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.
626.9541(1)(i)(3)(g) Failing to promptly notify the insured of any additional information necessary for the processing of a claim.
626.9541(1)(i)(3)(h) Failing to clearly explain the nature of the requested information and the reasons why such information is necessary.
* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

“COVERAGE A— We will pay for accidental direct physical loss to the property described in Coverage A, unless the loss is excluded or limited in SECTION I – LOSSES NOT INSURED or otherwise excluded or limited in this policy. . . . COVERAGE B— We will pay for accidental direct physical loss to the property described in Coverage B caused by the following perils, unless the loss is excluded or limited in SECTION I – LOSSES NOT INSURED or otherwise excluded or limited in this policy. . . . . 2. Windstorm or hail.”
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Justin Schneck is a homeowner insured with a policy issued by State Farm Florida Insurance Company (“State Farm”). The insured property or home is located at 8330 Boyla Court, Windermere, Florida 34786. In September of 2022, Hurricane Ian caused extensive damage to Mr. Schneck’s home. Mr. Schneck timely reported an insurance claim for this damage to State Farm and fully cooperated with all requests for inspections. He provided all requested documentation, if any, and complied with all post loss policy conditions. An estimate for repair of all damages with respect to Mr. Schneck’s claim was prepared on his behalf for $592,551.16 and was submitted to State Farm. After reporting the claim, State Farm retained an unqualified and biased field adjuster who has a financial relationship with State Farm. This field adjuster inspected Mr. Schneck’s home in an apparent effort to minimize State Farm’s losses instead of adjusting the claim in good faith in due regard for Mr. Schneck’s interests. Based on these findings, State Farm completely denied coverage for Mr. Schneck’s claim. Due to such bad faith claim handling, Mr. Schneck has been unable to permanently repair his home. Based on these facts, it is clear State Farm unreasonably denied coverage for Mr. Schneck’s claim in bad faith. It denied coverage for the claim without conducting a reasonable investigation based upon the available information. It misrepresented pertinent policy provisions and facts and did not act fairly and honestly with Mr. Schneck in due regard for his interests. State Farm also delayed the claim and failed to timely respond to communications. It further failed to adopt and implement standards for the proper investigation of this claim. This has become a common business practice of State Farm. Florida Statute § 624.02 defines insurance as a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit based on determinable contingencies. Inherent is the fact that payment must be made timely and promptly so that insureds may mitigate their damages and be put back into the position they were in prior to the loss as quickly as possible. State Farm has breached this duty by refusing to properly and timely adjust the loss. As a result, Mr. Schneck will have no choice but to retain the undersigned counsel to file a lawsuit against State Farm. State Farm has more than enough information and is still refusing to accept coverage for this claim. This continued and repeated reckless claim delay and denial of coverage will result in a significant punitive damage award if a bad faith lawsuit is filed. State Farm can avoid a lawsuit for bad faith by immediately accepting full coverage under the subject insurance policy for this claim and by paying Mr. Schneck $557,151.16, which is the policy limit for coverage A less the 2% hurricane deductible.
Comments
User Id Date Added Comment
sreyes@kpsds.com 02-07-2025 VIA E-Mail Only Ali A. Kadir, Esquire Kuhn Raslavich, P.A. 986 Douglas Ave Ste 102 Altamonte Springs, FL 32714-2059 Intake2@thekrfirm.com Re: Insured: Justin Schneck Claim No.: 59-70B0-91F DFS Filing No.: 796044 Dear Mr. Kadir: We have the pleasure of representing State Farm Florida Insurance Company (“State Farm”) with regard to the above-referenced matter. We are in receipt of the Civil Remedy Notice (CRN) you filed on behalf of your client, Justin Schneck, against State Farm on December 9, 2024, with a DFS Filing Number 796044. Please allow this correspondence to serve as State Farm’s response to the CRN. The stated reason for the CRN is claim denial; claim delay; unsatisfactory settlement offer; unfair trade practice and misrepresentation. The CRN claims that State Farm violated Florida Statutes 624.155(1)(b)(1); 624.155(1)(b)(3); 626.9541(1)(i)(3)(a); 626.9541(1)(i)(3)(b); 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); and 626.9541(1)(i)(3)(h). As a preliminary matter, State Farm denies it violated the statutes cited in the CRN. State Farm has handled the claim in and treated the Insured with good faith at all times. We also note that you provided no new information regarding these allegations since the time of State Farm’s initial response to the CRN and request for information dated December 20, 2024. Specifically, we had requested that you provide us with any facts to support the allegations in the CRN. We indicated that we would be happy to review any details you may have supporting these allegations. However, we have not received any new information to date. As an initial matter, the CRN is deficient and fails to comply with Florida law. The purpose of a Civil Remedy Notice is to provide an insurer with a chance to settle the claim and avoid unnecessary litigation. See Talat Enterprises, Inc. v. Aetna Cas. & Sur. Co., 753 So. 2d 1278 (Fla. 2000); see also, The Heritage Corporation of South Florida v. National Union Fire Insurance Company of Pittsburgh, P.A., 580 F.Supp. 2d 1294 (S.D. Fla. 2008). In furtherance of this purpose, § 624.155(3)(b), Florida Statutes requires that a Civil Remedy Notice “state with specificity” the statutory provisions allegedly violated, the facts and circumstances giving rise to the violation, the name of any individual involved in the violation, and the specific policy language relevant to the violation. See, Junior Julien v. United Property and Casualty Insurance Company, No. 4D19-2763 (Fla. 4th DCA September 23, 2020); Fox v. Starr Indem. & Liab. Co., No. 8:16-CV-3254-T-23MAP, 2017 WL 1541294, at *2 (M.D. Fla. Apr. 28, 2017). The CRN is deficient as it fails to specifically state the policy language and facts and circumstances that give rise to the alleged violations. Specifically, the CRN vaguely provides language/headings from the policy but does not provide an explanation as to how State Farm failed to comply with the terms of the policy or any specific policy language therein by referencing the specific language in the policy pertaining to the alleged statutory violations. Moreover, the “facts and circumstances” section of the CRN is not in compliance with Florida law. Contrary to the requirements of Florida Statutes, the CRN makes false, boilerplate accusations, and does not contain any specific facts supporting the violation regarding State Farm’s alleged claim denial; claim delay; unsatisfactory settlement offer; unfair trade practice and misrepresentation, or its alleged violations of those statutory provisions noted above and in the CRN. These accusations are untrue, and the CRN contains no facts to support them. Although the CRN alleges that State Farm “unreasonably denied coverage…” the following summary demonstrates that State Farm has acted responsibly and in good faith during the investigation and handling of this claim. The failure to provide any factual support for the alleged violations of Florida statutes and administrative law renders the CRN deficient and in violation of Florida Statute § 624.155(3)(b). On or about June 28, 2024, a claim was reported to State Farm as Hurricane Ian damage which allegedly caused damage at the subject property, located 8330 Boyla Court, Windermere, Florida 34786 (the “Property”). A date of loss of September 28, 2022, was provided. State Farm contacted the Insured’s representative on or about July 08, 2024, during the investigation, the Public Adjuster advised that he noticed unseen damages to the tile roof and interior damages to the hallway, bar, upstairs, bonus room behind bookshelf and theatre. In response to the claim, State Farm sent a representative to inspect the property on or about July 21, 2024. The representative found no covered damages observed around the exterior elevations of the insured’s home, as a review of historical weather data for the insured property address revealed multiple weather events throughout the past three years. Additionally, photos submitted on August 6, 2024, were consistent with repeated weather events. Therefore, based upon the results of the discussions, site inspection, and investigation, it was determined the Insured breached the policy contract and conditions through late reporting. The late reporting prejudiced State Farm’s ability to thoroughly investigate the claim. Thus, State Farm was unable to provide coverage for the loss. The delayed reporting of this damage by approximately 21 months materially prejudiced State Farm’s investigation and ability to arrive at an accurate assessment of the cause and extent of the damage claimed. State Farm advised the Insured of their findings via correspondence, dated September 16, 2024. To date, State Farm has not received any information that would warrant a change in its coverage decision. The CRN unfairly and wrongfully accuses State Farm of conducting an inadequate investigation and misrepresenting the scope and cause of damages. Such accusations are unsupported by any facts, are conclusory and are nothing more than bold, generic, boilerplate language. Rather, the facts set forth above confirm State Farm performed a prompt and thorough inspection of the Property to the best of its ability in reliance on the information provided by the Insured and his and representatives. The facts above also demonstrate that State Farm investigated all damages alleged by the Insured and his representatives and took all information provided into account, while considering its rights under the Policy, when rendering its decision. State Farm has handled and continues to handle this claim in the appropriate manner and in good faith, doing everything it could reasonably do to timely and properly investigate the Insured’s claim and pay benefits where owed. Additionally, State Farm has acted at all times fairly and honestly towards the Insured and in the best interests of the Insured, consistent with the terms and conditions of the contract for insurance and Florida law. For the reasons set forth above, State Farm denies the allegations contained in the CRN. However, we would welcome the opportunity to review any additional information you may have that you believe supports your client’s position. Should you have any documents or other information that State Farm has not had the opportunity to review, please provide those at your earliest convenience. Very truly yours, /s/ Stephanie A. Reyes Stephanie A. Reyes SAR cc: State Farm Florida Insurance Company
Acknowledgement
* 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.

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DFS-10-363
Rev. 10/14/2008