Civil Remedy Notice of Insurer Violations
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Filing Number:     809181
Filing Accepted:  3/3/2025
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Complainant
Last/Business Name *  
HERNANDEZ   First Name   BRYAN
Street Address * 3232 RODRICK CIRCLE
City, State Zip * ORLANDO, FL 32824
Email Address * NICK@THEKRFIRM.COM
Complainant Type: * Insured
Insured
Last/Business Name*   HERNANDEZ   First Name   BRYAN
Policy # * 000988328064 Claim #* 0735526832
Attorney
Attorney is Applicable
Last Name* SLAWEK First Name * NICHOLAS Initial R
Street Address* 2300 NW CORPORATE BLVD., SUITE 110
City, State Zip* BOCA RATON , FL 33431
Email Address * NICK@THEKRFIRM.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   CASTLE KEY INDEMNITY COMPANY
NAIC Company Code 10835
 
Name of individual responsible for violation (if any):* UNKNOWN
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
Claim Denial
* 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.
626.9541(1)(i)(3)(b) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
626.9541(1)(i)(3)(d) Denying claims without conducting reasonable investigations based upon available information.
* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

THE POLICY LANGUAGE RELEVANT TO THE VIOLATIONS INCLUDES ALL APPLICABLE LOSS PAYMENT AND COVERAGE PROVISIONS OF POLICY NUMBER 000988328064, INCLUDING THE DECLARATIONS PAGE AND ALL ENDORSEMENTS TO THE POLICY, WITH RESPECT TO COVERAGES A, B, C, AND D. ADDITIONALLY, ANY SECTIONS RELIED UPON BY THE INSURER IN ITS DENIAL TO FULLY PAY THE CLAIM, INCLUDING THE DUTIES IN THE EVENT OF LOSS PROVISIONS AND THE POLICY'S EXCLUSION OF COVERAGE PROVISIONS.
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Bryan Hernandez (hereinafter “Insured”) is a homeowner insured with an all-risks policy issued by Castle Key Indemnity Company (hereinafter “Carrier”). On or about July 31, 2023 Insured’s home located at 3232 Rodrick Circle, Orlando, Florida 32824 sustained significant damage as a result of water damage. Specifically, Insured’s property sustained water damage due to a plumbing failure in the air conditioner unit. The discharge of water caused damage to Insured’s property, including but not limited to, kitchen, living room, dining room, loft, master bedroom, closets, stairs, AC, and multiple bedrooms. The Loss is covered under Insured’s policy issued by Carrier. The Insured mitigated damages by contacting Loss Restorations LLC who performed mitigation services on the subject property. All of the relevant documents were provided to Carrier. Insured promptly reported the claim and fully cooperated with all requests for inspections. Carrier assigned Claim No. 0735526832 to the loss. The Insured has fully cooperated with Carrier’s investigation of the claim, including providing all requested documentation and complying with all post-loss policy conditions. Specifically, the Insured, with assistance from their public adjuster, submitted an estimate for $63,870.70, which is a fair and reasonable assessment for the repair/replacement of damages. Loss Restorations LLC has an outstanding invoice for $4,059.41. Despite Insured providing Carrier with a detailed estimate, Carrier failed to pay Insured the amount necessary to repair/replace the damaged property, less the applicable deductible. Instead, Carrier wrongfully denied full coverage for the loss. This has become a common business practice for Carrier. On March 14, 2024, Carrier hired NV5 Engineer Raul Rosario to re-inspect the property. During this inspection, this engineer knew the Insured was represented by counsel yet continued to interrogate the Insured. This is another example of improper claims handling by the Carrier and further proves their failure to implement quality standards in their investigation. Under the circumstances surrounding this claim, had Carrier acted fairly and honestly toward the Insured and with due regard for the Insured’s interests, Carrier could and should have attempted in good faith to settle this claim. Carrier did not and, instead, dishonestly, and unfairly placed its own interests well ahead of those of the Insured. In doing so, Carrier violated Section 624.155(1)(b)(1), Florida Statutes. Carrier’s use of unqualified and biased adjusters to identify the repairs necessary to restore the property to its pre-loss condition, evidence Carrier’s failure to adopt and implement standards for the proper investigation of claims in violation of Section 626.9541(1)(i)(3)(a), Florida Statutes. Carrier’s use of unqualified and biased adjusters, and failure to retain experts necessary to identify the repairs necessary to restore the property to its pre-loss condition, evidence Carrier’s failure to conduct a reasonable investigation based upon available information. In denying full coverage for this claim without conducting reasonable investigations based upon available information, Carrier has violated Section 626.9541(1)(i)(3)(d), Florida Statutes. By representing to Insured that the Policy does not afford full coverage for this loss, Carrier is misrepresenting pertinent facts and/or insurance policy provisions relating to coverages at issue, in violation of Section 626.9541(1)(i)(3)(b), Florida Statutes. When applying the facts present here to Florida law, it is clear that Carrier is acting in bad faith. Florida Statute § 624.02 defines insurance as a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit based on determinable contingencies. Inherent is the fact that payment must be made timely and promptly so that insureds may mitigate their damages and be put back into the position they were in prior to the loss as quickly as possible. Carrier has breached this duty by refusing to properly and timely adjust the loss. Moreover, Section 69B-220.201 of the Florida Administrative Code defines Carrier’s adjusters' conduct here as an unfair claims settlement practice. Specifically, Section 69B-220.201(3) provides that “[a]n adjuster shall not approach investigations, adjustments, and settlements in a manner prejudicial to the insured” and that “[a]n adjuster shall make truthful and unbiased reports of the facts after making a complete investigation.” As detailed above, Carrier’s investigation and adjustment of this claim was done in a manner prejudicial to Insured, was incomplete, and lacked truthful and unbiased reports of the facts. In addition to the aforementioned actions, the Carrier’s field adjuster, Cody Vires, secretly recorded the Insured without his consent. This action is a clear violation of Florida law, which requires the consent of all parties involved in a conversation for such recordings. The fact that the Carrier's adjuster engaged in this unlawful conduct further demonstrates the Carrier’s failure to act fairly and honestly in the investigation of this claim. The adjuster’s actions not only show a biased and dishonest approach but also further support the claim that the Carrier has acted in bad faith throughout the handling of this claim. This is another example of improper claims handling by the Carrier and further proves their failure to implement quality standards in their investigation. Such conduct is wholly inconsistent with the duty of good faith owed to the Insured under Florida law. Carrier has more than enough information and is still refusing to accept coverage for the Insured’s claim. This continued and repeated reckless claim delay and denial of coverage will result in a significant punitive damage award if a bad faith lawsuit is filed. Carrier can cure the defects outlined in this Civil Remedy Notice and avoid a lawsuit for bad faith by immediately accepting full coverage under the subject insurance policy for this claim and by paying Insured’s estimate of damages less applicable deductible and prior payments, which is the reasonable amount of the covered loss pursuant to the policy. A copy of this form has been submitted to the Florida Department of Financial Services and has been printed and mailed to the following parties providing them notice of the filing of this Civil Remedy Notice: Castle Key Indemnity Company.
Comments
User Id Date Added Comment
joanna.opato@allstate.com 04-29-2025 April 29, 2025 VIA CRN ONLINE SYSTEM Florida Department of Financial Services Consumer Assistance/Civil Remedy Section Larson Building, 200 Gaines Street Tallahassee, FL 32399-0322 Re: Complainant: Bryan Hernandez DFS File No.: 809181 Insured: Bryan Hernandez Insurance Company: Castle Key Indemnity Company Claim No.: 0735526832 Dear Sir or Madam: This letter is Castle Key Indemnity Company’s (“Castle Key”) response to the above-referenced Civil Remedy Notice. This response is provided on behalf of Castle Key and all of its employees, agents, officers and affiliates. The Department accepted the CRN on 3/3/2025. Therefore, this response has been timely filed within the statutory deadline. As a preliminary matter, Castle Key at all times during the handling of this claim acted fairly and honestly toward its insured. Castle Key fully and fairly considered information in regard to the matters at hand and fully observed its contractual, statutory and administrative obligations. Castle Key has carefully reviewed, considered, and evaluated the alleged violations charged and believes they are completely without merit. Castle Key wholly denies any and all allegations of wrongdoing, claim delay, claim denial, unfair claims handling, unsatisfactory settlement offer, unfair trade practice, misrepresentation or bad faith in connection with the above claim. Additionally, the CRN is defective and either does not sufficiently state the circumstances at hand or does so inaccurately. Accordingly, the CRN should be rejected Complainants’ CRN violates the requirements set forth in the Florida courts’ jurisprudence for civil remedy notices. It fails to meet even the most basic requirements of the statute. Accordingly, Castle Key respectfully requests the Department return the CRN and insist Complainants provide the specific facts required for civil remedy notices. See Section 624.155(3)(c), Florida Statutes. These requirements arise from the provisions of Section 624.155(3)(a) & (b), Florida Statutes. In interpreting this statute, courts have emphasized the importance of filing specific civil remedy notices. The civil remedy notice is “crucial to the procedural integrity of an action” under the statute. Allstate Ins. Co. v. Clohessy, 32 F. Supp.2d 1328, 1333 (M.D. Fla. 1998). “It is, without a doubt, a condition that must be satisfied in order for one to perfect the right to sue under the statute.” Id. Thus, the CRN cannot be “vague and ‘shotgun’ in nature,” rather than “the type of specific notice required by the statute that would allow [the insurer] an opportunity to cure.” Heritage Corp. of South Florida v. National Union Fire Ins. Co. of Pittsburgh, PA, 580 F. Supp. 2d 1294, 1299 (S.D. Fla. 2008). Because it is in derogation of the common law, Section 624.155(1)(b), Florida statutes must be strictly construed. Talat Enterprises, Inc. v. Aetna Cas. & Sur. Co., 753 So.2d 1284 (Fla. 2000) (citing Baxter v. Royal Indem. Co., 285 So.2d 652 (Fla. 1st DCA 1973). To perfect the right to sue under the statute, the insured must specifically notify the insured of any and all alleged violations claimed. Talat Enterprises, Inc. v. Aetna Casualty & Surety Co., 952 F.Supp. 773, 776 (M.D. Fla. 1996). Ultimately, conclusory allegations without facts fail to perfect a statutory bad faith claim. Merely alleging the bare minimum allegations is insufficient pursuant to Florida courts’ interpretations of Section 624.155, Florida Statutes. There are requirements for a valid civil remedy notice. Section 624.155(3), Florida Statutes. Section 624.155 mandates Complainants to provide specific facts and circumstances of the alleged violations. This would necessarily include specific facts regarding the method of the investigation, the reasons the investigation was improper or otherwise inadequate, the reasons why this alleged inadequacy is due to the failure to adopt and implement standards for the proper investigation of claims, and the facts supporting these conclusions. Florida law does not allow an insured, without providing any facts, to allege that the insurer’s only option to avoid bad faith is paying whatever the insured demands. 316, Inc. v. Maryland Cas. Co., 625 F. Supp. 2d 1187, 1194 (N.D. Fla. 2008). Complainants’ CRN violates the specificity requirement. As such, Castle Key would like this opportunity to set forth an accurate factual background, and thereby correct omissions in Complainants’ CRN. Castle Key received its first notice of loss in November of 2023, for damages allegedly sustained by a leaking AC unit in the same month, to the property located at 3232 RODRICK CIR ORLANDO FL 32824. During this claim a prompt investigation was made, and an inspection was done by the appropriate Castle Key representative. Additionally, there was detailed follow up communication by Castle Key during all phases of this claim. Castle Key has fulfilled and is fulfilling its duties as provided under the terms and conditions of the insurance policy. Castle Key does not consider there to have been any violation of the referenced statutory provisions or otherwise. At all times during the investigation of the subject claim, Castle Key acted diligently and in good faith to resolve same. Castle Key reserves all of its rights. If anyone at the Department has any questions concerning this matter, please contact Castle Key at our office for a further response. Sincerely, CASTLE KEY INDEMNITY COMPANY
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