Civil Remedy Notice of Insurer Violations
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Filing Number:     808107
Filing Accepted:  2/24/2025
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Complainant
Last/Business Name *  
DAYTONA BEACH OCEAN TOWERS   First Name  
Street Address * 2800 NORTH ATLANTIC AVENUE
City, State Zip * DAYTONA BEACH, FL 32118
Email Address * STEPHANIE.PARCUS@CHURCHDWIGHT.COM
Complainant Type: * Insured
Insured
Last/Business Name*   DAYTONA BEACH OCEAN TOWERS   First Name  
Policy # * CHSE-00289-0 Claim #* RO2211868
Attorney
Attorney is Applicable
Last Name* MILLARD First Name * SCOTT Initial G
Street Address* 385 W. FAIRBANKS AVE.
City, State Zip* WINTER PARK , FLORIDA 32789
Email Address * SM@HMGLEGAL.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   OLD REPUBLIC UNION INSURANCE COMPANY
NAIC Company Code 31143
 
Name of individual responsible for violation (if any):* GARY PARKES
Type of Insurance * Commercial Property & Casualty   
Reason for Notice *
Claim Delay
Claim Denial
Unsatisfactory Settlement Offer
Unfair Trade Practice
Other : Failure to implement proper adjusting practices
Other : Failure to timely respond to claim correspondence
Other : misrepresentation
* 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)(2) Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made.
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)(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)(e) Failing to affirm or deny full or partial coverage of claims, and, as to partial coverage, the dollar amount or extent of coverage, or failing to provide a written statement that the claim is being investigated, upon the written request of the insured within 30 days after proof-of-loss statements have been completed.
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.
626.9541(1)(i)(3)(g) Failing to promptly notify the insured of any additional information necessary for the processing of a claim.
626.9541(1)(i)(3)(h) Failing to clearly explain the nature of the requested information and the reasons why such information is necessary.
* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

4. Additional Coverages, a) Debris Removal E. Loss Conditions, 4. Loss Payment F. Additional Conditions, 3. Replacement Cost Coastal Habitational Amendatory Endorsement
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

The Insureds suffered a covered hurricane loss as a result of Hurricane Ian. The Insureds timely reported the claim and the Insurer was provided full access to the property to inspect. The Insureds fully cooperated with the Insurer's investigation. The Insurer agreed that the roof was damaged by Hurricane Ian and that it should be replaced. The Insureds then contracted with a certified roofing contractor for the approved repairs. The Insureds provided the Insurer with proof of the contract and had already provided notice of the intent to perform the repairs and provided the Insurer with access prior to the repairs, to the extent that it was requested. On July 22, 2024 and individual identified as Gary Parkes took over the file. Counsel for Insured spoke to Mr. Parkes on August 2, 2024 regarding yet another request for information. It was explained that the Insurer was just trying to properly pay the claim. It was explained to Mr. Parkes that the Insureds were moving forward with the approved repairs and would submit a request to recover the Replacement Cost Value pursuant to the clear coverages afforded by their insurance policy. In fact, on August 9, 2024, the Insureds fully responded to the Request for Information by responding to each request individually. Moreover, Insureds delivered the documents via a drop box link. Mr. Parkes thereafter had a statutory duty to do the following things: 1) respond to claim correspondence - 626.9541(1)(i)(3)(c); 2) Pay or deny the claim within 60 days - 627.70131; 3) Pay the RCV within 30 days - 626.9541(1)(i)(3)(e); and importantly considering that the Insurer had committed to completion of the approved repair and submitted the incurred costs of doing so 4) promptly issuing payment of all withheld depreciation and the RCV as required by the insurance policy - 624.155(1)(b)(1) . Gary Parkes has failed to do any of the above over the last six months. In fact, the Insured has followed up with Gary Parkes multiple times with little to no acknowledgment, response, or explanation for why he has failed to promptly pay for the approved repair in violation of multiple contractual and statutory provisions. On 9/5/2024 - Insured reached out to verify that Parkes had received the documents sent on 9/9/2024, to verify he had everything he needed and to follow up on payment. On 9/16/2024 - Gary Parkes responded. He did not comply with the timeframe set by Florida statutory law and good faith claims handling statutes cited herein. He finally acknowledged what he had and asked why the roofing contractor was charging more than that amount figured by his "adjusting team." On 9/19/2024 - The Insured responded by writing in red on the emailed questions that Gary Parkes sent. The Insured answered in detail and also reiterated that the roof construction was underway, that the costs were agreed upon, and that the insured was making payment pursuant to the contract. Insured also instructed Mr. Parkes to talk to his "consultants" to figure out why they were so far off of the actual cost of the necessary repairs. On 10/18/2024 - Gary Parks untimely responded to the Insured's claim correspondence once again - a habit that had formed and contradicted his oral representations in the first phone conference between Parkes and Attorney Millard - stating that he would provide a detailed response shortly and that the adjustment team was continuing their review of the additional claim support materials. Noticeably, Mr. Parkes gave no actual concrete information about what he was doing to resolve this claim, rather he continued his practice of providing vague responses and not actually addressing the issue at hand with the claim. On 1/10/2025 - Insured followed up with Gary Parkes due to his failure to do what he advised he would do, or his misrepresentation of what he was doing, or that he was discharging his contractual and statutory duties and obligation to pay the incurred cost of the roof replacement the Insurer approved for this property. At this time it had been 84 days without any "detailed response" and by this time we had far surpassed "shortly" under any metric. On 1/13/2025 - Gary Parkes finally responds. Did not provide a detailed report. Gave no valid details about why the claim hadn't been paid out, what they were still "reviewing," what was needed to simply issue payment of the incurred costs, or at least the portion no longer in dispute such as the withheld depreciation. Moreover, Gary Parkes used his tactic of stating he would "see how the matter may be fully resolved for the insured as soon as possible." This was another misrepresentation as the repair cost is incurred per a contract. There is nothing to do, other than to issue payment per the RCV coverage and the Coastal Habitational Amendatory Endorsement. - this is likely why the costs are so different due to having to manage a construction process on a beach habitat next to the Atlantic Ocean. On 2/5/2025 - Insured followed up once again. 110 days after the October 18, 2024 promise to provide the report from the adjustment team. Gary Parkes didn't even bother to respond to this request. On its face, Gary Parkes is part of an intentional scheme to fail to pay this claim, or he is not properly supervised or trained. Being that he has decades of experience, per his representations to Attorney Millard on 8/2/2024 it would appear that the multiple breaches of the policy and violations of statutory law are an intentional scheme to cause harm and prejudice to the insured for no valid purpose other than to maximize profits over their duties to their insured. To cure this CRN, the Insurer shall deliver payment of the Replacement Cost Value of the roof replacement as presented by the insured based on their executed contract and the agreement to pay Lewis Roofing. The payment draft should be issued pursuant to the Letter of Representation on file and delivered to the address provided above for Attorney Scott G. Millard.
Comments
User Id Date Added Comment
michael.mcgriskin@phelps.com 04-25-2025 VIA ELECTRONIC SUBMISSION: Florida Department of Financial Services Bureau of Consumer Assistance Civil Remedy Section Larson Building 200 East Gaines St. Tallahassee, Florida 32399-0322 Re: Civil Remedy Notice of Insurer Violations Insured: Daytona Beach Ocean Towers Insurers: Old Republic Union Insurance Company Policy No.: Listed in Notice as CHSE-00289-0 Reported Date of Loss: September 29, 2022 (Hurricane Ian) Claim No.: Listed in Notice as RO2211868 Loss Location: 2800 North Atlantic Avenue, Daytona Beach, FL 32118 DFS File Nos.: 808107 Accepted by DFS: February 24, 2025 To Whom it May Concern: We represent Old Republic Union Insurance Company (“The Insurer” or “Old Republic”), one of the property insurer(s) for Daytona Beach Ocean Towers (the “Insured”) under Policy Numbers CHSE-00289-0 and CHSE-00615-0. The policies provided coverage for the condominium association property located at 2800 N. Atlantic Avenue, Daytona Beach, FL 32118 (the “Property”), subject to certain terms, conditions, exclusions, limitations, definitions, and endorsements. The Insured has Claim No. RO2210090 (Hurricane Ian) under Policy Number CHSE-00289-0 and Claim Number RO2211868 (Hurricane Nicole) under Policy Number CHSE-00615-0. We write on Old Republic’s behalf in response to the Civil Remedy Notice of Insurer Violations (the “Notice”) filed against Old Republic. The Notice bears filing number 808107 with an acceptance date of February 24, 2025. In the Notice, the Insured alleges that the Insurers violated the following sections of the Florida Statutes with regards to the Insured’s claim under the Policy for alleged damage to the Property, which reportedly occurred on September 28, 2022: Sections 624.155(1)(b)(1), 624.155(1)(b)(2), 624.155(1)(b)(3), 626.9541(1)(i)(3)(a), 626.9541(1)(i)(3)(b), 626.9541(1)(i)(3)(c), 626.9541(1)(i)(3)(d), 626.9541(1)(i)(3)(e), 626.9541(1)(i)(3)(f), 626.9541(1)(i)(3)(g), and 626.9541(1)(i)(3)(h). The Notice generally alleges that the “Reasons for Notice” are “Unsatisfactory Settlement Offer,” “Claim Denial,” “Claim Delay,” “Unsatisfactory Settlement Offer”, “Unfair Trade Practice, “Failure to implement proper adjusting practices”, “Failure to timely respond to claim correspondence”, and “misrepresentation.” The Notice is deficient as it incorrectly identifies Old Republic as an “Authorized Insurer.” Old Republic is a Surplus Lines Insurer. Additionally, the notice is deficient because it lists the incorrect Policy # or Claim #. The Policy # cited is for the Hurricane Ian claim and the Claim # cited is for the Hurricane Nicole claim. The Insurers categorically deny that they or any of their representatives engaged in any prohibited conduct or violated any of the statutes referenced in the Notice with respect to this claim. The Insurers acted in good faith, without delay, and with due regard for the Insured’s interests at all times during the investigation, handling, and adjustment of the Insured’s claim, to resolve the dispute pursuant to the terms of the Policy. The Notice is vague and deficient in describing the facts and circumstances giving rise to the alleged statutory violations and does not provide the Insurers with a meaningful opportunity to “cure” the alleged violations. Despite the deficiencies in the Notice, a detailed response to the Notice was sent via e-mail to counsel of record on April 25, 2025. Per the Policy, all matters in difference between the named insured and the Insurers shall be referred to an Arbitration Tribunal as set out in the Policy. If the Department has any questions or requires any additional information, please contact us. Regards, /s/ Michael McGriskin /s/ Lindsay Vigness Michael McGriskin CC: Via E-Mail: sm@hmglegal.com christian@ficarellilaw.com
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