Filing Number: 801148
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| Filing Accepted: 1/15/2025 |
| Last/Business Name
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MALARNEY
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First Name |
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JOSEPH |
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| Street Address
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1 WATER CLUB WAY, UNIT #601 |
| City, State Zip
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NORTH PALM BEACH,
FL
33408
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| Email Address
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JOSEPHMALARNEY@GMAIL.COM |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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MALARNEY |
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First Name |
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JOSEPH |
| Policy # * |
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OLCF0018299 |
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Claim #* |
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24FLDFV0015715 |
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Attorney is Applicable
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| Last Name* |
FERTEL
First Name *
JORDAN
Initial
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| Street Address* |
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151 N NOBB HILL RD, #404 |
| City, State Zip* |
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PLANTATION
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FL
33324
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| Email Address * |
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JORDAN@KCGLAW.INFO |
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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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OLYMPUS 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 12954 |
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| Name of individual responsible for violation (if any):*
SABRINA BROWN, LATONYA STROTHER & CLAIMS DEPARTMENT
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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 Delay
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Claim Denial
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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)(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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Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
Duties After Loss - Loss Settlement Provision
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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.
January 13, 2025
Olympus Insurance Company
Attention: Sabrina Brown, Latonya Strother & Claims Department
8375 Dix Ellis Trail, Suite #300
Jacksonville, FL 32256
Sent via DFS website
RE: Client : JOSEPH MALARNEY & CHRISTINE CARONA
Insured : JOSEPH MALARNEY & CHRISTINE CARONA
Policy # : OLCF0018299-00
Claim # : 24FLDFV0015715
Property Address : 1 Water Club Way, Unit #601, North Palm Beach, FL 33408
Dear Olympus Insurance Company:
Please find enclosed our Civil Remedy Notice that has been filed. Below is a summary of the statutory violations to be alleged and a summary of the facts of the bad faith actions taken by the insurance company. As discussed in greater detail in the notice, the carrier has not attempted in good faith to settle the claimant’s claim 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 its interests. Furthermore, the carrier is required to properly investigate and adjust claims and cannot place that burden upon the insured. This was made clear by the appellate court and the Florida Supreme Court in Allstate Indemnity Co. v. Ruiz, 899 So. 2d 1121 (Fla. 2005) (“The Legislature has clearly chosen to impose on the insurance companies a duty to use good faith and fair dealing in processing and litigating the claims of their insureds…”).
All statutory provisions alleged to have been 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)(2) A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy.
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)(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.
The facts and circumstances giving rise to the insurer's violation as you understand them at this time:
The Insurance Company has failed to properly investigate, adjust, settle and pay the Insured’s claim. Instead, the Insurance Company, as part of a general business practice and due to a failure to adopt and implement standards for the proper investigations of claims, has willfully, wantonly and maliciously, and in reckless disregard for the rights of its Insured, has intentionally refused to make payment on the Insureds’ claim, resulting in an unreasonable payment delay and/or effective denial of portions of the Insured’s claim. The Insured has a Homeowners Policy with the Insurance Company, which covers all fortuitous losses by the Insured unless the loss is specifically excluded. On or about August 19, 2024, a leak caused damages to the Insured’s property.
Specifically, as it relates to bad faith, during the investigation of this claim, the Insurance Company’s adjuster, Sabrina Brown, failed to act promptly upon communications with respect to the claim in violation of Florida Statutes § 626.9541(1)(i)(3)(c). In multiple occasions (October 25, 2024, November 4, 2024, November 5, 2024, November 11, 2024, November 26, 2024, December 3, 2024, and December 9, 2024), the Insured’s public adjuster emailed and called Sabrina Brown to discuss the claim, and its resolution, without receiving a response. It wasn’t until the Insured’s public adjuster informed Sabrina Brown that the Insurance Company failed to make a coverage within the 30 days and that they were almost at 60 days with no decision that the Insurance Company informed the Insured that they were denying his claim. After that, radio silence from Sabrina Brown and the Insurance Company. The Insurance Company even failed 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 this claim in violation of Florida Statutes § 626.9541(1)(i)(3)(f). What’s worse is that the Insurance Company cannot 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 this claim because its own investigation does not support it. The Insurance Company hired an engineer to investigate the cause of loss for this claim and the engineer concluded that he could not recreate the cause of the leak as it had been cleared by the time he went to inspect the property. Given that the Insurance Company’s engineer cannot confirm nor recreate the cause of loss for this claim, the Insurance Company’s decision to deny this claim violated Florida Statutes § 624.155(1)(b)(1) 624.155(1)(b)(3), 626.9541(1)(i)(2), 626.9541(1)(i)(3)(a), 626.9541(1)(i)(3)(b), 626.9541(1)(i)(3)(d), and 626.9541(1)(i)(3)(f).
To date, the Insurance Company has failed and refused to pay the Insureds for the total amount of damages the Insureds suffered and paid for. As a result of the insurance company’s conduct, the Insureds have suffered financial hardship as they have had to spend over $18,000.00 of their own money on the repairs that the Insurance Company should have paid for. In addition, and also as a result of the insurance company’s conduct, the Insureds have suffered, and continues to suffer, further consequential damages due to the insurance company’s improper delay/denial of the covered insurance claim.
It is clear that the carrier is not treating the claimant with good faith claims conduct; failing to pay a claim clearly owed; not adjusting the claim and evaluating the loss properly, promptly and fairly to provide full and prompt indemnity to the claimant; failing to implement proper standards for the adjustment and investigation of claims and placing the company’s interests before the claimant’s interests; not training, supervising or managing adjusters properly so that prompt and full payments are made; refusing to pay the full amount owed to the claimant despite the fact that the damages are covered under the policy; looking for ways to delay full recovery or any recovery to the claimant; and refusing to provide coverage for the claimant’s loss in a timely manner. The carrier’s actions are in violation of Florida Statutes § 624.155(1)(b)(1), 624.155(1)(b)(3), 626.9541(1)(i)(2), 626.9541(1)(i)(3)(a), 626.9541(1)(i)(3)(b), 626.9541(1)(i)(3)(d), and 626.9541(1)(i)(3)(f), as well as Section I- Perils Insured Against, subsection 1, providing coverage for direct loss to property unless the damage was caused solely by an excluded or excepted cause of loss.
Therefore, to cure the defects outlined in this Civil Remedy Notice, the carrier must: 1) Pay the complete covered loss in the amount of $141,803.47; 2) Pay the Claimant’s attorneys’ fees and costs as they have been forced to retain counsel; and 3) Pay the statutory interest on the amount of unpaid damages from the date of loss to the date payment is finally made. A copy of this letter and filed form submitted to the DFS has been sent to the carrier.
Sincerely,
Karl C. Gonzalez
Karl C. Gonzalez, Esq.
Attorney at Law
Enclosed: Civil Remedy Notice Filing
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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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