Civil Remedy Notice of Insurer Violations
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Filing Number:     801186
Filing Accepted:  1/15/2025
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Complainant
Last/Business Name *  
MUZICHUK   First Name   PAVEL & MARIYA
Street Address * 1131 MONTEGO RD E
City, State Zip * JACKSONVILLE, FL 32216
Email Address * MARICHKA22@GMAIL.COM
Complainant Type: * Insured
Insured
Last/Business Name*   MUZICHUK   First Name   PAVEL & MARIYA
Policy # * FLP344818 Claim #* 1370027­241013
Attorney
Attorney is Applicable
Last Name* SMITH First Name * RYAN Initial
Street Address* 350 N LAKE DESTINY ROAD
City, State Zip* MAITLAND , FL 32751
Email Address * RSMITH@ITSABOUTJUSTICE.LAW
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   ASI PREFERRED INSURANCE CORP.
NAIC Company Code 13142
 
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)(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)(4) Failing to pay undisputed amounts of partial or full benefits owed under first-party property insurance policies within 60 days after an insurer receives notice of a residential property insurance claim, determines the amounts of partial or full benefits, and agrees to coverage, unless payment of the undisputed benefits is prevented by factors beyond the control of the insurer as defined in s. 627.70131(5).
* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Section 1 - Property Coverages – Coverage A – Dwelling Section 1 – Perils Insured Against – Coverage A-Dwelling and Coverage B-Other Structures Section 1- Conditions – Loss Settlement Section 1 – Conditions –Loss Payment
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

On or about January 9, 2024, Pavel and Mariya Muzichuk (“Insureds”), suffered damage to their home located at 1131 MONTEGO RD E, Jacksonville, Florida as a result of wind and hail damages. Prior to the loss, AMERICAN STRATEGIC INSURANCE CORP (hereinafter, "ASI"), had issued a policy of insurance (Policy No.: FLP344818) for the Insureds’ property. Said policy, which was issued prior to the loss, was in full force and effect and afforded coverage for damage caused by the loss. ASI was timely notified of the loss by the Insureds and assigned claim number 1370027­241013. During the course of ASI’s investigation, the Insureds made their property available for inspection, provided facts and information surrounding the loss, and complied with the Insurer’s adjustment of the claim. Despite fully cooperating with ASI’s investigation, ASI inexplicably failed to extend coverage for the entirety of the Insureds’ insurance claim even though there was clear evidence of additional covered damage to property. ASI came to its coverage determination by ignoring relevant facts and information proving that additional repairs were necessary to fix damaged property. Most concerning, ASI and its representatives purposely downplayed and misrepresented evidence at the property to avoid tendering full payment on a claim it knew was covered pursuant to the terms of the policy. ASI instead deliberately undervalued the insured's claim for widespread Hurricane damage on the roof, which did not allow for the necessary replacement of the roof due to the extensive damages. As a result, ASI has deliberately chosen to undervalue the homeowner's claim so that she then came to be forced to hire an attorney to recover the amounts owed to her under the policy; the insurer has deliberately chosen to exercise this approach as a result of the abrogation of Fla. Stat. 627.428. Thus, the homeowner has now become obligated to pay more than her out of pocket deductible of $2,500 in order to be made whole by the insurer's deliberate act to under pay claims. It is clear that ASI has not acted honestly or fairly towards its Insureds. ASI and its representatives have failed to conduct a proper investigation of the loss, misrepresented the scope of damages and repairs, and misapplied policy provisions to wrongfully reduce payment for the Insureds’ claim. It has become a general business practice of ASI to not implement proper claims handling procedures, to hire consultants that routinely ignore or intentionally misidentify relevant evidence, and to not settle claims in good faith when under all circumstances it should have. As is the case here, it is a pattern and practice for ASI to arbitrarily underpay portions of claims without conducting reasonable investigations based upon information and evidence available to it. ASI does this as part of a calculated measure to not pay legitimate claims and instead retain policyholders' premiums. Furthermore, ASI's actions are part of a broader scheme to delay claims and avoid issuing payment that ASI knows is owed to its insureds. ASI's actions are widespread sufficient to constitute a general business practice, which come to the detriment of policy holders paying more than their policy deductibles to proceed with the restoration of their property to pre-loss condition. In order to cure this civil remedy notice, ASI must acknowledge that the Insureds’ property was damaged by wind and hail damages and that replacement of the roof is covered by the policy. ASI must further tender the full contractual amount owed to replace the roof pursuant to the terms of the policy. Payment should be issued to the “Cohen Law Group Trust Account f/b/o Pavel and Mariya Muzichuk.” The written explanation of benefits and payment should be sent to the Insureds’ counsel’s office at 350 N. Lake Destiny Road, Suite 300, Maitland, FL 32751.
Comments
User Id Date Added Comment
darryl_j_roles@progressive.com 01-21-2025 While ASI Preferred Insurance Corp believes that the Civil Remedy Notice fails to comply with the requirements of Florida Statute §624.155 and Florida Case law, it has responded to the notice in writing to Ryan Smith, on January 21, 2025. Pursuant to F.S. 624.155(3)(e), please accept this notice on the disposition of the alleged violations contained in the Civil Remedy Notice occurred on January 17, 2025.
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