Civil Remedy Notice of Insurer Violations
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Filing Number:     804400
Filing Accepted:  1/30/2025
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Complainant
Last/Business Name *  
CLARK   First Name   CARI
Street Address * 10812 GANDY BLVD.
City, State Zip * SAINT PETERSBURG, FL 33702
Email Address * CARI@TAMPABAYFLORIDALAWYERS.COM
Complainant Type: * Insured
Insured
Last/Business Name*   SOUTHERN C'S PROPERTY, LLC   First Name   CARI
Policy # * 091151822618 05 Claim #* 24 0016504
Attorney
Attorney is Applicable
Last Name* BULLER First Name * JARED Initial
Street Address* 10812 GANDY BLVD N
City, State Zip* SAINT PETERSBURG , FL 33702
Email Address * JARED@TAMPABAYFLORIDALAWYERS.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   WRIGHT NATIONAL FLOOD INSURANCE COMPANY
NAIC Company Code 11523
 
Name of individual responsible for violation (if any):* MICHAEL DIEAL
Type of Insurance * Commercial Property & Casualty   
Reason for Notice *
Unsatisfactory Settlement Offer
* 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.
626.9541(1)(i)(3)(a) Failing to adopt and implement standards for the proper investigation of 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.

Under Florida Statutes § 624.155(1)(b)(1) and § 626.9541(1)(i)(3)(a), Wright National Flood Insurance Company has: Failed to promptly and fairly investigate and adjust the claim as required by law. • Engaged in unfair claims settlement practices, including utilizing an unqualified adjuster. • Improperly delayed and undervalued the claim, failing to issue a fair settlement.
 
* Facts and circumstances giving rise to the violation.
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Despite multiple attempts to resolve this matter, yourself as the insurer’s assigned Claim Representative and Estimator, Michael Shane Dial of Fountain Group Adjusters, has failed to perform a competent evaluation. Specifically, you have: 1. Admitted to having no experience with commercial claims and lack the requisite knowledge to accurately assess the damages. 2. Are unfamiliar with the required claims adjustment software, which has resulted in an inaccurate and incomplete valuation of the insured’s damages. 3. Omitted at least two rooms from the damage estimate, leading to a severely deficient claim amount. 4. Misrepresented the insured’s role in the claims process, stating that they need to assist with conversion calculations, despite the fact that the insured has no access to the insurer’s proprietary estimating program. 5. Failed to account for all necessary repairs and replacements, as documented in the Flood Cost Breakdown prepared by AJ Building Group, LLC, which is being used to supplement this claim. This claim has been grossly undervalued, offering a net payout of only $75,794.95, which is woefully inadequate given the actual replacement cost value (RCV) of $317,065.00, as detailed in the enclosed Flood Cost Breakdown. The insured has already incurred approximately $250,000 in out-of-pocket costs to restore the property and is suffering financial harm due to the insurer’s failure to adjust the claim in good faith. Under Florida Statutes § 624.155(1)(b)(1) and § 626.9541(1)(i)(3)(a), Wright National Flood Insurance Company has: Failed to promptly and fairly investigate and adjust the claim as required by law. • Engaged in unfair claims settlement practices, including utilizing an unqualified adjuster. • Improperly delayed and undervalued the claim, failing to issue a fair settlement. The Flood Cost Breakdown prepared by AJ Building Group, LLC (attached) itemizes the necessary repairs and restoration required to return the property to its pre-loss condition, totaling $317,065.00. The estimate can be found attached to this correspondence. Mr. Dial, you have failed to properly convert and apply the necessary calculations to incorporate this estimate into the claims system, wrongfully placing the burden on the insured to facilitate the conversion despite the insured having no access to the claims program. This behavior constitutes bad faith adjustment practices. To remedy these violations, we will notify Wright National Flood Insurance Company that it must: 1. Assign a qualified adjuster with experience in commercial claims to properly reassess the damage and incorporate the Flood Cost Breakdown into the estimate. 2. Correct all errors and omissions, ensuring all applicable areas are accounted for, and provide a detailed and transparent breakdown of the calculations. 3. Issue a supplemental payment reflecting the full and fair value of the claim, accounting for the $317,065.00 documented damages and $250,000 already spent by the insured on necessary repairs. 4. Provide a final decision and payment within 60 days of this notice to avoid further legal action for bad faith practices. The only offer from Mr. Dial at this point is $75,794.95. However, there subject building has 4,381 SF Walls and Ceiling; 3,371 SF of Flooring. All flooring had to be removed and replaced. The price per square foot that Mr. Dial is using in has calculation is grossly under value. For example, in the bull pen area, which is 428.83 SF of flooring he only alloted $335.76 for the removal of the carpet when the same was soaked with water and sewage. No contractor would even set foot and touch the carpet for $300, let along remove it and dispose of it given the condition and weight of the carpet. The numbers are simply non sensical. The actual cost of removal of the flooring in the entire building was $7,500, which is a more than fair number given the square footage of the building and the condition of the flooring that needed to be removed. Despite requests to review and revise his estimate, Mr. Dial has simply thrown it back on us the insured. We have provided him proof of cost and receipts for payment. Our contractor has talked to him and met with him several times to explain the work done and costs for the same. All of this to no avail. It is clear that Mr. Dial is either unwilling to evaluate correctly or not equipped to evaluate this claim correctly.
Comments
User Id Date Added Comment
Compliance@weareflood.com 02-07-2025 Wright National Flood Insurance Company (“Wright”) is a Write-Your-Own (“WYO”) Program insurance carrier participating in the United States Government’s National Flood Insurance Program pursuant to the National Flood Insurance Act of 1968, as amended 42 U.S.C. § 4001, et seq. Wright, while acting in its capacity as a WYO Program carrier, issued Standard Flood Insurance Policy (“SFIP”) Number 09115182261805, General Property Form, to Southern C S Property LLC as the named insured for the property located at 10812 Gandy Blvd N, St Petersburg, FL 33702-1425. Based on the information obtained to date, Wright appropriately handled the 9/27/2024 flood claim and paid the claim in compliance with the terms and conditions of the SFIP and FEMA’s rules and regulations. The SFIP is a federal regulation, see 44 C.F.R. Pt. 61, App. A(2). The SFIP, Art. X provides: X. WHAT LAW GOVERNS This policy and all disputes arising from the insurer’s policy issuance, policy administration, or the handling of any claim under the policy are governed exclusively by the flood insurance regulations issued by FEMA, the National Flood Insurance Act of 1968, as amended (42 U.S.C. 4001, et seq.), and Federal common law. F.S.A. § 624.155, et seq, has no application to a dispute with Wright because of the handling of a claim under the SFIP. Any requirements imposed on Wright pursuant to F.S.A. § 624.155, et seq. are preempted by federal law. See Shuford v. Fidelity Nat. Prop. & Cas. Ins. Co., 508 F.3d 1337, 1343 – 44 (11th Cir. 2007)(“Federal regulations have same preemptive effect as federal statutes.”). Furthermore, pursuant to the SFIP and applicable authorities, any action filed against Wright alleging a breach of the SFIP must be filed in the United States District Court of the district in which the insured property was located at the time of loss.
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