Civil Remedy Notice of Insurer Violations
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Filing Number:     799542
Filing Accepted:  1/6/2025
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Complainant
Last/Business Name *  
GORDON   First Name   KENDRICK AND AISHA
Street Address * 4142 BRIARFOREST RD W.
City, State Zip * JACKSONVILLE, FL 32277
Email Address * N/A
Complainant Type: * Insured
Insured
Last/Business Name*   GORDON   First Name   KENDRICK AND AISHA
Policy # * 2MR138311902 Claim #* 00201822463
Attorney
Attorney is Applicable
Last Name* ELIMELECH First Name * REBECCA Initial R
Street Address* 1500 N.E. 162ND ST.
City, State Zip* MIAMI , FLORIDA 33162
Email Address * RELIMELECH@ILGPA.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   AMERICAN SECURITY INSURANCE COMPANY
NAIC Company Code 42978
 
Name of individual responsible for violation (if any):* N/A
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
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)(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)(c) Failing to acknowledge and act promptly upon communications with respect to claims.
* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

COVERAGES COVERAGE A – Dwelling 1. Property Covered We cover a. The 1-4 family dwelling on the described location shown in the Declarations, used principally for dwelling purposes, including structures attached to the dwelling; b. Materials and supplies located on or next to the described location used to construct, alter or repair the dwelling or other structures on the described location; and c. If not otherwise covered in this Certificate, building equipment and outdoor equipment used for the service of and located on the described location. COVERAGE B – Other Structures We cover other structures on the described location, set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. PERILS INSURED AGAINST COVERAGE A - DWELLING and COVERAGE B - OTHER STRUCTURES We insure against risk of direct loss to property described in Coverages A and B only if that loss is a physical loss to property.
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Kendrick Gordon and Aisha Gordon (hereinafter the “Insureds”), paid for a policy of insurance with American Security Insurance Company (hereinafter, “Insurer”) bearing policy number 2MR138311902 (the “Policy”). The Policy provides coverage for damage to the Insureds’ property located at 4142 Briarforest Rd W, Jacksonville, Florida 32277 (the “Property”), including the significant damage that occurred as a result of Hurricane Debby on or about August 5, 2024 (the “loss”). Specifically, the Insureds’ Property sustained substantial damage to the roof and bedroom closet due to a branch. The Insureds promptly reported their claim to the Insurer. On September 10, 2024, the Insurer sent a letter to the Insureds advising that the damages to the Property totaled $802.76. The Insureds contacted the Claims Resolution Services, who conducted a thorough inspection of the property and compiled an estimate of damages. Claims Resolution Services, on behalf of the Insureds, forwarded said estimate which fully detailed the Insureds’ damages and total $171,791.32. However, the Insurer refuses to resolve the Insureds’ claim and pay for all damages to the Property. The Insurer’s conduct is in bad faith and violates Florida’s statutes concerning the adjustment of insurance claims. First, Florida Statute § 624.155(1)(B)(1) requires good faith in the settlement of claims. The Insurer is in violation of this Statute for failing to provide a reasonable repair estimate. What is more, the Insurer violated Florida Statute § 624.155(1)(b)(3) by failing to promptly settle the claim, when the obligation to settle the claim became reasonably clear. Again, the Insurer failed to make a good faith offer to settle this claim and failed to account for the full scope of the damages. They failed to respond to the estimate provided by Claims Resolution Services, on the Insureds’ behalf, in a timely manner. They are obligated to provide coverage for all damages to the Insureds’ Property, and not attempt to resolve this claim with lowball offers. Additionally, the Insurer’s conduct violates Florida Statute § 626.9541, which prohibits unfair settlement practices. More specifically, the Insurer has violated Florida Statute § 626.9541(1)(i)(3)(a) by failing to adopt and implement standards for the proper investigation of claims. Further, the Insurer has violated Florida Statute § 626.9541(1)(i)(3)(c) by failing to acknowledge and act promptly with the Insureds and its counsel. As mentioned above, the Insurer failed to account for the full scope of the damages and has additionally failed to respond to the estimate provided by Claims Resolution Services, on behalf of the Insureds, in a timely manner, delaying the resolution of this claim. Had the Insurer done so, it would have immediately settled this claim on a fair and reasonable basis and provided full coverage to its Insureds. Therefore, to cure the defects outlined in this Civil Remedy Notice, the Insurer must: (1) create and implement adequate guidelines for the proper investigation and evaluation of claims and for the training and supervision of employees, which will avoid future statutory violations and avoid this from occurring in the future; (2) immediately tender all insurance proceeds due and owing its Insureds under the Policy in the amount of $171,791.32 (less the deductible and any prior payments), plus all statutory interest; (3) act fairly and honestly towards its Insureds and with due regard for their interests in attempting to settle their Insureds’ claim; (4) hold the claim open in the event that its errors and delay does or may cause the Insureds to suffer either further loss and/or damage; and, (5) stipulate to the Insureds’ entitlement to attorney’s fees and court costs pursuant to Florida Statutes §§ 627.428 and 626.9373. Acknowledgment This notice is given in order to perfect the right to pursue the civil remedy authorized by Florida Statutes section 624.155, should American Security Insurance Company fail to cure the violations set forth in this Civil Remedy Notice within the given cure period.
Comments
User Id Date Added Comment
relimelech@ilgpa.com 08-04-2025 This Civil Remedy Notice is hereby withdrawn.
anorth@wsh-law.com 03-07-2025 Dear Ms. Elimelech: We represent American Security Insurance Company (“ASIC”) in connection with the above-referenced claim. We are in receipt of a Civil Remedy Notice of Insurer Violation ("CRN") you submitted on behalf of Kendrick & Aisha Gordon (the “Claimants”), the filing of which was accepted by the Florida Department of Financial Services on January 6, 2025. This correspondence will serve as ASIC’s response to the CRN. While ASIC welcomes the opportunity to respond to this Civil Remedy Notice of Insurer Violation and specifically denies each and every allegation contained in the Civil Remedy Notice filed in relation to this claim, ASIC believes that the Civil Remedy Notice should be rejected and returned by the Department of Financial Services as it fails to comply with the specific information requirements as set forth in Civil Remedy Notice of Insurer Violation provisions as set forth in Florida Statute §624.155 and Florida Case law. The CRN alleges that ASIC has violated Sections 624.155 and 626.9541 of the Florida Statutes, and generally alleges that ASIC violated the statutes by failing to promptly and properly investigate a claim; failing to act in due diligence and good faith to resolve a claim; and failing to adopt and implement standards of proper claims investigation. As a preliminary matter, ASIC asserts that the Civil Remedy Notice requires the complainants "pursuant to section 624.155, F.S. [to] please indicate all statutory provisions alleged to have been violated." The notice filed in this matter includes various statutory provisions that could be claimed against an insurance company, regardless of whether they are relevant or applicable to the circumstances of the claim identified in the Notice. Because the Civil Remedy Notice fails to identify any specific facts that allegedly violate a specific statute, ASIC is unable to properly respond, and it should be rejected and returned. Also, the Notice fails to set forth any specific policy language alleged to have been violated in accordance with Florida Statute §624.155(3)(b)(4). It is this failure to identify any specific policy provision that is allegedly relevant to the alleged violations that prevents ASIC from addressing any issues regarding the policy. The CRN indentifies nearly every policy provision whether or not the provisions are applicable to the Claimants’ claim. ASIC explicitly denies any alleged violations of Florida Statutes §624.155 (1)(b) and §626.9541, and any other applicable insurance statute or any provision of the insurance policy issued to the Claimants. ASIC further denies any allegations of improper claim handling, misrepresenting pertinent facts, coverage available under the policy, policy provisions and unfair settlement practices. Finally, ASIC explicitly denies violation of any applicable Florida statute in the adjustment of the referenced claim. ASIC specifically denies that that it has not attempted in good faith to settle the Claimants’ claim when under all the circumstances they could and should have done so and denies that it has failed to act fairly and honestly towards the Claimants’ interests. Rather, ASIC has handled the Claimants’ claim both diligently and properly. The Civil Remedy Notice also contains “cures” which are improper pursuant to Florida Case law, specifically the case of Talat Enterprises, Inc., v. Aetna Casualty and Surety Co., 753 So.2d 1278, 1281 (Fla. 2000). The Talat case provides that the scope of what can be "cured" is limited to the alleged non-payment of the contractual amount due our Claimants. Talat also commented that "It naturally follows that for there to be a "cure," what had to be "cured" is the non-payment of the contractual amount due the Claimants. In the context of a first-party insurance claim, the contractual amount due the Claimants is the amount owed pursuant to the express terms and conditions of the policy after all of the conditions precedent of the insurance policy in respect to payment are fulfilled....” As a result, only the demanded “cures” relating to the payment for covered damages are proper and legal – the remaining “cures” are improper remedies and contrary to Florida law. Additionally, contrary to the requirement to “describe the facts and circumstances giving rise to the insurer’s violation as you understand them at this time”, the purpose of which is “to enable the insurer to investigate and resolve [the] claim”, the Civil Remedy Notice itself only provides conclusory allegations with no facts or circumstances provided to support the conclusory allegations. ASIC denied each and every one. Below are some of the facts regarding the claim that you failed to include in the Notice. On August 9, 2024, ASIC received notice that the property sustained damage as a result of Hurricane Debbie on August 5, 2024, with reported damage to the property’s roof, fencing, and interior finishes. ASIC’s independent adjuster Ashley Sikes of Davis Claim Services (“IA”) inspected the loss on August 21, 2024. The IA did not locate any sudden and accidental wind damage to the shingles and determined that the living room damage was coming from around the chimney along the flashing area and related to a maintenance issue. As it relates to the secondary structure, the roof likewise showed no signs of wind damage. The damage to the soffit area was long-term and showed signs of significant deterioration, which is not covered under the terms of the Policy. Additionally, some of the interior damage was relating to settlement, which is not covered under the Policy either. On the exterior finishes, damage was noted to a portion of the vinyl siding, to the garage door, to the gutter over the garage, to two windows, and to some screens. The IA also observed interior damage that appeared to be related to the loss. As a result, the IA prepared an estimate to repair the damage totaling $12,907.58 RCV/$11,084.47 ACV. ASIC then issued a payment of $802.76 in connection with the claim after applying the $14,412 deductible and accounting for recoverable depreciation of $2,923.16. The Claimants subsequently submitted a repair estimate prepared by Claims Resolution Services totaling $171,791.32 RCV/$160,314.84 ACV, which included replacement of the roof, repairs to the entire interior of the home, and fencing. Upon receipt of the Claimants’ estimate, ASIC re-inspected the property, but the parties were not able to come to an agreement on the scope and pricing of the loss. On September 10, 2024, ASIC issued its coverage letter, which advised the Claimants that its investigation had determined that the loss was covered under the Policy and that the damages totaled $1,905.81 RCV, and that a payment of $802.76 was being issued on an actual cash value basis, with $1,103.05 being withheld as recoverable depreciation. Despite explaining how the Claimants could seek payment of the recoverable depreciation, the Claimants never made such a claim. This Notice followed. ASIC conducted a full, fair, thorough, and proper investigation of the Claimants’ claim. The Claimants merely disagree with ASIC’s coverage decision, and their CRN does not allege any facts that would impugn the propriety of ASIC’s handling or adjustment of this claim or any other. As explained above, each of the allegations of wrong doing in the Civil Remedy Notice are inconsistent and contrary to the actual facts of the adjustment of the claim and ASIC denies each and every one. Nevertheless, regardless of the deficiencies of the Civil Remedy Notice noted above, and subject to our total denial of all allegations of wrongdoing, ASIC has at no time acted in bad faith, acted unethically, attempted to avoid settling the claim, or engaged in unfair claims practices. ASIC remains hopeful that this claim can be resolved amicably. In closing, ASIC first believes that the Civil Remedy Notice should be rejected and returned by the Department of Financial Services due to its failure to comply with Florida Statute §624.155 and Florida case law, and regardless of the rejection, ASIC denies all allegations contained in the Civil Remedy Notice and submits there are no violations. While this response is meant to be comprehensive, ASIC’s response above is based upon the limited information provided in the Civil Remedy Notice and the information we have to date. If the Claimants feel that ASIC is not in possession of all the facts, please inform us immediately. Please note that ASIC’s response is not necessarily exhaustive and does not preclude ASIC from asserting any other valid reason for seeking rejection and return of the Civil Remedy Notice. Also, this letter or any act or failure to act on the part of ASIC or any agent or representative of ASIC should not be construed as a waiver of any rights or defenses available to it by contract or at law as all such rights and defenses are hereby specifically reserved. We hope this correspondence will adequately address the matters raised in the Civil Remedy Notice. Based on the foregoing, ASIC believes the Civil Remedy Notice filed by the Claimants is without merit. Should you have any further questions, concerns, or require additional information, please do not hesitate to contact us. Sincerely, Austin J. North
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