Civil Remedy Notice of Insurer Violations
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Filing Number:     798000
Filing Accepted:  12/23/2024
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Complainant
Last/Business Name *  
GLASSMAN   First Name   ADAM
Street Address * 27032 WINGED ELM DR
City, State Zip * WESLEY CHAPEL, FL 33544-77
Email Address * ADAMRG10@YAHOO.COM
Complainant Type: * Insured
Insured
Last/Business Name*   GLASSMAN   First Name   ADAM
Policy # * 000988787102 Claim #* 0774172563
Attorney
Attorney is Applicable
Last Name* LINE First Name * KACI Initial A
Street Address* 2431 LEE ROAD
City, State Zip* WINTER PARK , FLORIDA 32789
Email Address * KACI@TAGUSLAW.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   CASTLE KEY INDEMNITY COMPANY
NAIC Company Code 10835
 
Name of individual responsible for violation (if any):* BROCKSTON PAYNE AND ALL ADJUSTERS, SUPERVISORS, MANAGEMENT AND INDIVIDUALS ASSOCIATED WITH OR RETAINED BY CASTLE KEY INDEMNITY COMPANY INVOLVED IN THIS CLAIM.
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
Claim Denial
Claim Delay
Unsatisfactory Settlement Offer
Unfair Trade Practice
* 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)(2) Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made.
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.

The complainant will abbreviate the full policy language for purposes of brevity while clearly identifying the significant portions so the Respondent may identify the full language... THIS VIOLATION REFERENCES THE DEFINITIONS CONTAINED WITHIN THE POLICY AND ITS AMENDMENTS AND ENDORSEMENTS THAT PERTAIN TO COVERAGES FOR ROOF AND WATER DAMAGES (INDIVIDUALLY AND COLLECTIVELY) TO THE PROPERTY OF ADAM GLASSMAN. THIS VIOLATION ALSO REFERENCES COVERAGES - COVERAGE A - DWELLING AND ALL APPLICABLE PORTIONS OF THE POLICY, INCLUDING BUT NOT LIMITED TO AMENDMENTS AND ENDORSEMENTS. THIS VIOLATION ALSO REFERENCES THE COVERAGE B - OTHER STRUCTURES PORTION OF THE POLICY, INCLUDING BUT NOT LIMITED TO AMENDMENTS AND ENDORSEMENTS. THIS VIOLATION ALSO REFERENCES PERILS INSURED AGAINST, COVERAGE A - DWELLING AND COVERAGE B OTHER STRUCTURES, ITS APPLICABLE PORTIONS OF THE POLICY, INCLUDING BUT NOT LIMITED TO AMENDMENTS AND ENDORSEMENTS. THIS VIOLATION ALSO REFERENCES THE ORDINANCE AND LAW PORTION OF THE POLICY THAT WAS PURCHASED WITH PREMIUM DOLLARS PAID TO CASTLE KEY INDEMNITY COMPANY. THIS VIOLATION ALSO REFERENCES SECTION I - CONDITIONS - SUBSECTION 3 LOSS SETTLEMENT AND ITS APPLICABLE PORTIONS OF THE POLICY, INCLUDING BUT NOT LIMITED TO AMENDMENTS AND ENDORSEMENTS. THIS VIOLATION ALSO REFERENCES THE FUNGI, WET OR DRY ROT OR BACTERIAL COVERAGE ENDORSEMENT.
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Section I Property Coverages provides coverage for the claim and there are no exclusions that apply. Castle Key Indemnity Company has failed to issue payment pursuant to the Loss Settlement Provision. On or about, October 9, 2024, during the coverage period while the policy was in full force and effect, the subject property sustained a sudden and accidental covered loss as a result of a hurricane event, Hurricane Milton, causing extensive damage to the property. Castle Key Insurance Company (“CASTLE KEY”) received timely notice of the claim and assigned claim number 0774172563. CASTLE KEY performed a cursory inspection of the property – Castle Key failed to retain qualified inspectors necessary to identify the repairs required to restore the property to its pre-loss condition. CASTLE KEY failed to issue full payment for the subject loss and wrongfully denied coverage for various areas of the property. CASTLE KEY continued the intentional path of claim delay and underpayment by failing to implement policies and procedures for payment of clearly covered claims. CASTLE KEY knew or should have known that their adjuster would find little to no damage to the roof from the hail and windstorm storm and if found damage would contribute damage to an exclusion. CASTLE KEY time and time again, relies upon “cookie-cutter” reports that less than ironically state the cause of the damage to be identical to those exclusions found inside of CASTLE KEY ’s policy of insurance. CASTLE KEY continues to fail to promptly settle the claim when its obligation to settle has, under all the circumstances, become reasonably clear. There is no question the roof of the Insured’s home was struck by hurricane winds so severe that caused damage and requiring a full roof replacement and gutters. Despite this, CASTLE KEY denied any and full coverage for the clearly covered loss. CASTLE KEY continues to rely upon more restrictive definitions of damage that is not contained within the policy and appears to only look for damage that would not be covered while intentionally not photographing or documenting the extensive covered damage. CASTLE KEY relies upon the report and estimate of its adjuster which bears little to no relationship to the actual, visible damage to the roof and its necessary repair/replacement. Following its initial inspection, It is clear that CASTLE KEY has put its own interest over that of its insured and has made this case about protecting its bottom line as opposed to living up to the contract of insurance it was paid premium dollars for. The insurer’s conduct in this case occurs with such frequency as to constitute a general business practice. CASTLE KEY knows it has failed to issue proper payment for the clearly covered loss to include damages and repairs covered by the policy and Florida law. Moreover, CASTLE KEY has failed to comply with its loss settlement provision. Rather than issuing the proper payment or attempting to reach an agreement with its insured, CASTLE KEY is delaying and denying the claim. Upon information and belief, CASTLE KEY performs the subject actions as a business practice, including delaying and denying the claim and issuing "low ball" payments in an attempt to dissuade its insureds from pursuing the claim to the detriment of its insureds to increase financial profits. CASTLE KEY can cure the violations contained herein by issuing a payment for all contractual damages owed, per estimates of $65,095.12 plus interest, costs, and attorney’s fees. This willful and wanton business practice in reckless disregard for the right of insurer’s insureds and is a violation of Florida Statute 624.155(1)(B)(1) which states it is an unfair claims settlement practice in “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 interest.” This willful and wanton business practice of insurer, in reckless disregard for the rights of its insureds, is in violation of Florida Statute 624.155(1)(B)(3), which defines unfair claims settlement practices to include “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.” This willful and wanton business practice of insurer, in reckless disregard for the rights of its insureds, is in violation of Florida Statute 626.9542(1)(I)(3)(a), which defines unfair claims settlement practices to include “failing to adopt and implement standards for the proper investigation of claims.”
Comments
User Id Date Added Comment
Carla.Allen@allstate.com 02-12-2025 Please allow this correspondence to serve as Castle Key Indemnity Company’s (hereinafter referred to as “Castle Key”) response to your Civil Remedy Notice of Insurer Violations filing number 798000. This response was uploaded to the DFS CRN website today’s date. Castle Key Indemnity Company specifically denies the allegations set forth in the Civil Remedy Notice of Insurer Violations. At all times, Castle Key has acted in good faith. Castle Key wholly denies all allegations of wrongdoing, unsatisfactory settlement offer, Unfair Trade Practice, claims denial & claim delay on the above claim. Castle Key does not consider there to have been any manner of violation and questions the validity of the Notice as it fails to meet the requirements set forth in Section 624.155 and 626.9541, Florida Statutes and Florida law and thus fails to perfect the insured’s right to pursue civil remedies. The potential statutory violations and information submitted are nothing more than unsupported, baseless allegations. Castle Key notes the CRN fails to reference the specific policy language relevant to the alleged violations or set forth facts in support of each of the alleged violations. This information is required to be included and be correct on the statutory Civil Remedy Notice form. Castle Key investigated this loss and coverage was extended. This was not a denial as the CRN states. Castle Key inspected the property & found damages was below the insured’s deductible of $12,587.00. The policyholder retained the services of Adelphi Group PLLC, and the attorney submitted an estimate for damage that was unreasonable, excessive, inflated, overpriced, and included additional new damages. Castle Key has every right to disagree with submitted estimate. However, a subsequent re-inspection was completed & due to the poor condition of the insured’s roof the adjuster wrote for full roof replacement and issued undisputed payment for the dwelling. Castle Key believes their personnel prepared a fair and reasonable estimate based on local pricing and acceptable labor and material pricing and costs. As of the filing of this CRN, negotiations are still in process. A Florida Mediation letter was also sent to the insured. At all times, Castle Key Indemnity Company has acted in good faith in investigating and handling the claim. Castle Key Indemnity Company has not breached any duty owed to you. Nothing herein constitutes, nor should it be construed as, a waiver of any of Castle Key’s rights of under its policy of insurance, nor is it the purpose of this letter to waive any of the policy’s terms and conditions. Further, no action or inaction by Castle Key should be construed as a waiver of any of its legal defenses, including but not limited to the right to be served with a compliant Notice.
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