Filing Number: 798545
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| Filing Accepted: 12/29/2024 |
| Last/Business Name
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| Street Address
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1632 GROVE AVE., |
| City, State Zip
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FORT MYERS, FL,
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33901
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| Email Address
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BOYD1300@MAIL.COM |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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BOYD |
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First Name |
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DANIEL |
| Policy # * |
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FPH5350176-01 |
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Claim #* |
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FPI235090 |
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Attorney is Applicable
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| Last Name* |
FINCH
First Name *
ALEX
Initial
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| Street Address* |
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516 WHISPER WOOD DRIVE |
| City, State Zip* |
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LONGWOOD
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FL
32779-2541
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| Email Address * |
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AFINCHLEGAL@GMAIL.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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FLORIDA PENINSULA 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 10132 |
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| Name of individual responsible for violation (if any):*
ANY AND ALL ADJUSTERS, SUPERVISORS, MANAGEMENT, ATTORNEY’S AND INDIVIDUALS ASSOCIATED WITH OR RETAINED BY THE INSURANCE COMPANY INVOLVED WITH THE HANDLING AND/OR ADJUSTMENT OF 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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Unsatisfactory Settlement Offer
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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)(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)(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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| 627.7283(1) |
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If the insured cancels a policy of motor vehicle insurance, the insurer must mail the unearned portion of any premium paid within 30 days after the effective date of the policy cancellation or receipt of notice or request for cancellation, whichever is later. This requirement applies to a cancellation initiated by an insured for any reason.
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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.
DANIEL BOYD (THE “COMPLAINANT”) IS THE INSURED UNDER THE SUBJECT REDSIDENTAIL PROPERTY INSURANCE POLICY. COMPLAINANT ASSERTS THAT, INCLUDING BUT NOT NECESSARILY LIMITED TO, THE FOLLOWING POLICY PROVISIONS ARE SPECIFICALLY RELEVANT AND APPLICABLE: The Declaration Page for the effective policy period. The “Agreement” provision provides that the insurer described in the policy in exchange for paid premiums and insured’s compliance with the policy provisions; “Definitions” -”Insured” defines who the insured is under the policy; “Insured location” defines “residence premises” as the real property insured under the policy; “Occurrence” is defined as an accident which results in “property damage”; “Property damage” is defined as physical injury to tangible property; “Residence premises” is defined as the dwelling on the insured property as described on the Declaration Page; “Coverage A – Dwelling” establishes that the policy provides insurance for the dwelling shown in the Declarations together with materials and supplies located on or next to the dwelling; “Coverage B – Other structures” provides coverage for other structures on the insured premises set apart from the residence premises/dwelling by clear space; “Coverage C – Personal Property” provides coverage for personal property of the insured usual to the occupancy of the dwelling. “Coverage D – Loss of Use” provides coverage for loss of normal use of the property as a result of a covered peril. “Additional Coverages” –“ Debris Removal” provides coverage to remove debris created by damage from a covered event; “Reasonable Repairs”; “Property Removed” provides coverage for removal of debris resulting from damages resulting from a covered peril; “Loss Assessment” provides coverage for reimbursement of the insured’s expenses for any assessment against the insured by a corporation or homeowner’s association for damages incurred by a covered peril. The Landlord Furnishings provision provides coverage for damages to the insured’s identified property occasioned by windstorm or hail.; “Landlord’s Furnishings – Windstorm or hail” provides coverage for damages to the insured’s identified property occasioned by windstorm or hail. “Perils Insured Against” provides coverage for losses under Coverage A, Coverage Band Coverage C. The “Duties After Loss” provision provides for obligations of the insured to comply with the terms of the policy after providing notice of a loss including cooperation with the insurer for investigation of the claimed loss. The “Loss Settlement” provision provides the method utilized to settle and pay claims under the policy. The “Appraisal” provision provides a mediation and appraisal process by which either the insurer or the insured may use to resolve disputed claims of loss. The “Suit Against Us” provision provides conditions governing the insured’s ability to conduct litigation against the insurer. The “Loss Payment” provision provides the method utilized to settle and pay claims under the policy. All endorsements to the policy effective as of the asserted date of loss.
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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 F.S. §624.155. Complainant is an insured property owner.
Florida Peninsula Insurance Company. (hereinafter “Insurer”), refused and failed to pay Complainant all benefits due and owing for necessary services to be rendered after a loss from Hurricane Ian. On or around September 28, 2022, Insured suffered severe and substantial damages to real property caused by a covered peril. The Complainant retained a license contractor who then inspected the property and determined that there were substantial damages the replacement cost value in the amount of $43,909.91, which included a full roof replacement and other damages. These damages are vastly greater than the estimate prepared by Insurer. Insurer sent a representative to the Insured’s property who conducted a hurried, hasty, and inadequate inspection. Insurer, in conformance with Insurer’s guidelines, prepared an estimate that drastically undervalued the Insured’s claim. In fact, Insurer determined that the damages were only $12,300.00, leaving a disputed coverage amount of $31,609.91. After receiving a proper estimate along with the documentation necessary to substantiate the contractor's estimate, findings and causation of the damages from a covered peril under the policy, Insurer failed to make an appropriate estimate of value or to pay the insurance proceeds due under the policy, even though the damages were clearly greater than the Insurer’s estimate.
There are at least three reasons why a simple repair of the roofing system is not an option. First, § 626.9744(2), Fla. Stat. states: “When a loss requires replacement of items and the replaced items do not match in quality, color, or size, the insurer shall make reasonable repairs or replacement of items in adjoining areas…” In this case, the shingles that are on the roof were damaged and discontinued. Additionally, the shingles faded over time and cannot be matched. Florida’s matching statute requires matching of the shingles. Second, the underlayment of the roofing systems is so compromised that it cannot repairs and must be replaced in its entitely. As such, a repair of the roofing system is not an option since the law requires that all tiles be brought up to code. Third, § 708.1.1 of the Florida Building Code provides that “Not more than 25 percent of the total roof area or roof section of any existing building or structure shall be repaired, replaced, or recovered in any 12-month period unless the entire roofing system or roof section conforms to requirements of this code.” Therefore, when more than 25% of the roof is damaged, as is the case here, code requires replacement of the roof.
Additional damages to the property occurred such as damage to the foundation form intrusion, damage to the interior of the property for drywall and ceiling damage and mold. And finally, the fence structures of the property were severely damaged. All of these damages were so severe that each area of damage requires complete replacement rather than repair.
Insurer issued a policy of insurance which inured to the benefit of Insured, Daniel Boyd. The insurance policy provided property insurance for the Insured’s home located at 1632 Grove Ave., Fort Myers, FL 33901-7822. The policy provides insurance coverage for all of the losses, damages and expenses that Insured suffered and incurred with regard to the subject loss, including Complainant's fees, charges and amounts owed for its necessary roof and/or mitigation services. Complainant provided Insurer with prompt and timely notice of the claim and the estimate. Complainant’s estimate is reasonable and necessary to place the property back into its pre-loss condition, which the Insurer is required to do under the policy. Complainant’s only option is to hire an attorney to file a lawsuit to compel Insurer to pay all insurance proceeds due and owing. The Insurer continues to take the position that it should not pay proceeds due and owing despite having received the Insured’s estimate, photographs, having inspected the property, and despite being presented with clear evidence of damage to the Insureds’ residence caused by hurricane/windstorm damage.
Insurer willfully and wantonly breached its duty of good faith and standard of care owed to Insured and breached all applicable ethical codes governing public adjusting.
First, the profession of adjusting insurance claims involves a special relationship of trust with the public. Insurance adjusters and insurance company claims representatives owe a duty of good faith claims conduct to an insured and/or the assignee of a claim. Insurer breached this duty by its improper adjustment of Complainant’s claim for assigned benefits in connection with an insured that suffered sudden and severe hurricane damage to its property. The Insured, after paying premiums and expecting protection against a loss, is in an especially vulnerable economic and personal position when an unexpected loss occurs. The entire purpose of insurance is defeated if those involved with insurance adjustment can refuse or delay the prompt and full payment of monies due under the contract. Because insurers enjoy an advantage and bargaining power through an insurance contract, which is arguably an adhesion contract, insurers are held to a higher standard of care. When an insurance company issues an insurance policy to an insured, it promises to provide financial security in the event of damage to the insured’s home. When a covered loss occurs, the insurance company’s obligation under its promise to pay is triggered. The policyholder is completely dependent on performance by the insurance company when the insured is at its most
vulnerable position after a loss. The claim representative’s chief task should be to seek and find coverage, not to seek and find coverage controversies or to delay, deny, dispute or underpay insurance benefits. When an insurance company fails to pay claims it owes or engages in wrongful practices, contractual damages alone are inadequate. It is hardly a penalty to require an insurer to pay an insured (or the assignee of an insured) what it owed all along. Accordingly, the Florida legislature addressed the need for a bad faith action against an insurer in §624.155, Fla. Stat.; Complainant adopts and incorporates all provisions of that statute into this Civil Remedy Notice including all of the applicable provisions of §624.155(1)(i). It is far more profitable for an insurance company to take in an insured’s premium and not pay, rather than to promptly and fully pay what is owed. In this case, Insurer accepted contractually-required premiums, refused and failed to investigate and to adjust properly the claim, and failed to timely pay all proceeds due to the reasonable repair estimate. Therefore, Insurer breached its duty of good faith and standard of care to the Insured and to Complainant.
Second, the State of Florida implemented codes of ethics and good faith duties articulated in the Florida Administrative Code. Insurers and their representatives must follow these ethical duties. Insurer violated the ethical requirements set forth in the 4-220.201 of the Ethical Requirements as follows in its adjustment of the Complainant’s claim for insurance benefits: “… a) The work of adjusting insurance claims engages the public trust. An adjuster must put the duty for fair and honest treatment of the claimant above the adjuster’s own interests, in every instance. b) An adjuster shall have no undisclosed financial interest in any direct or indirect aspect of an adjusting transaction… c) An adjuster shall treat all claimants equally; an adjuster shall not provide favored treatment to any claimant. An adjuster shall adjust all claims strictly in accordance with the insurance contract. … f) No adjuster may advise a claimant to refrain from seeking legal advice, nor advise against the retention of counsel to protect the claimant’s interest. … i) An adjuster shall not knowingly fail to advise a claimant of their claim rights in accordance with the terms and conditions of the contract and of the applicable laws of this state… j) An adjuster shall approach investigations, adjustments, and settlements with an unprejudiced and open mind. k) An adjuster shall make truthful and unbiased reports of the facts after making a complete investigation. l) An adjuster shall handle each and every adjustment and settlement with honesty and integrity and allow a fair adjustment or settlement to all parties without remuneration to himself except that to which he is legally entitled. m) An adjuster, upon undertaking the handling of a claim, shall act with dispatch and due diligence in achieving a proper disposition thereof. n) An adjuster shall not undertake the adjustment of any claim concerning which the adjuster is not currently competent and acknowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster’s current expertise.” Further, Insurer failed to create and implement adequate guidelines for proper investigation and evaluation of damage claims brought under an AOB and for training and supervision of employees and adjusters resulting in statutory violations as set forth above. Insurer has failed and/or refused to thoroughly, accurately, and completely investigate and evaluate Complainant’s claim for damage insurance benefits. Notwithstanding Complainant’s timely notification to Insurer of its claim and all documentation necessary for Insurer to fully investigate the insured’s damage claim, Insurer has delayed in paying or tendering to Complainant all assigned benefits due and owing under the assignor’s policy. Insurer has failed to promptly settle Complainant’s claim for assigned benefits when the obligation to settle became reasonably clear. To date, Insurer has continued to refuse to acknowledge its obligation to tender all monies due and owing to Complainant.
No law or statute indicates that an insurance company’s good faith obligations are severed by litigation and there is nothing in the bad-faith statute that limits the bad faith penalty to pre-litigation events. Hurricane Ian made landfall on Florida’s coast and Insurer has refused and/or failed to settle the Complainant’s claim for assigned benefits under Insured’s policy when under all circumstances it could and should have done so had it acted fairly and honestly towards Complainant. Section 624.155(5), Fla. Stat., specifically exposes insurers to the risk of punitive damages should a jury conclude that the acts giving rise to the violation occur with such frequency as to indicate a general business practice and these acts are: (1) willful, wanton and malicious; or (2) in reckless disregard of the rights of its insured. Should discovery reveal that the Insurer’s bad-faith conduct, as referenced above, is a general business practice frequently implemented by Insurer against other insureds, which was done intentionally or in reckless disregard to the insureds’ rights, the insureds will seek an award of punitive damages from the jury.
Insurer may cure this demand/notice within the statutory period by paying: (1) the sum of $43,909.91, plus accruing interest, for the replacement cost damages necessary to return the property to its pre-loss condition; (2) $30,000.00 in settlement of Complainant’s bad faith claim; and (3) $35,000.00 in attorney’s fees and costs.
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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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