Civil Remedy Notice of Insurer Violations
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Filing Number:     809458
Filing Accepted:  3/4/2025
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Complainant
Last/Business Name *  
THOMPSON   First Name   LYNDA
Street Address * 21218 LAGO CIRCLE UNIT I
City, State Zip * BOCA RATON, FL 33433
Email Address * NOI@LEADER-LAW.COM
Complainant Type: * Insured
Insured
Last/Business Name*   THOMPSON   First Name   LYNDA
Policy # * 000988512385 Claim #* 0775687122
Attorney
Attorney is Applicable
Last Name* ZUCKER First Name * SCOTT Initial
Street Address* 633 S. ANDREWS AVE, SUITE 201
City, State Zip* FT. LAUDERDALE , FLORIDA 33301
Email Address * NOI@LEADER-LAW.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):* ALONSO SALGADO
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.
626.9541(1)(i)(3)(a) Failing to adopt and implement standards for the proper investigation of claims.
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.
* 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 Agreement to provide the insurance described in the policy in return for payment of the premium and compliance with all policy provisions. Loss Assessment. Loss Settlement. 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 November 13, 2024, the Insured, Lynda Thompson, suffered property damage as a result a plumbing leak. The insured timely reported the loss to Castle Key Indemnity Company (“Castle Key”). Castle Key inspected the property and conducted its investigation of the loss. The insured complied with all requests made by Castle Key and the investigation of the loss was completed. Upon completion of the investigation, Castle Key afforded coverage for the loss, but unilaterally determined the amount necessary to return the property to its pre-loss condition. Castle Key estimated the cost to return the property to its pre-loss condition in the amount of $11,871.23, before application of the deductible. The insured retained professionals to estimate and return the property to its pre-loss condition. The Insured received an estimate/invoice to repair the property in the amount of $58,651.27, before application of the deductible. Detailed line-item estimates were provided to the carrier to substantiate the amount at issue. The insured has retained the services of the Plumb24 to complete the plumbing and cosmetic repairs at the property. In fact, the repairs have been substantially completed. Accordingly, Castle Key is now on Notice that the invoices it has received represent the actual cost of the repairs and that its obligation to return all withheld depreciation is triggered. Castle Key failed to properly investigate and adjust the loss. In making its determination regarding the value of the loss, upon knowledge and belief, Castle Key utilized unrealistic pricing to estimate the cost of making repairs and applied improper labor values in estimating same. Castle Key has failed to fully indemnify its Insured. Castle Key has made little effort to resolve the disputes made apparent by the differences in both price and scope between the estimate provided by the Insured and the estimate prepared by Castle Key or its representatives. As a result of the carrier’s bad faith and improper claims handling, the Insured have been forced to retain the assistance of counsel. Castle Key has failed to properly indemnify its Insured when the obligation is clear. The Insurance Company violated the above referenced bad faith statutes relative to all aspects of its investigation, evaluation and handling of the subject claim. The Insurance Company has not attempted in good faith, to settle the claim, when under all circumstances it could and should have done so, had it acted fairly and honestly towards the claimant and with due regard for their interests. The Insurance Company has failed to adopt and implement standards for the proper investigation of claims and has failed to acknowledge and act promptly upon communications with respect to the claim. The Insurance Company has failed to provide a reasonable explanation in writing to its Insureds of the basis in the insurance policy in relation to the applicable law and facts for the basis of its failure to fully indemnify its insureds. All of the actions of the Insurance Company are of a general business practice and are willful, wanton and with reckless disregard for the rights of its Insureds. Florida law imposes no requirement to specify a definite cure amount in a civil remedy notice. Talat Enterprises, Inc., v. Aetna Casualty & Surety Co., 753 So. 2d 1278 (Fla. 2000). However, for clarity purposes, to cure the defects outlined in this civil remedy notice Heritage must complete the following: A. Immediately issue payment to the insureds for the full indemnity amount as indicated in the estimate(s) provided (less the policy’s deductible); B. Immediately issue payment for statutory interest, if appropriate; C. issue payment of the claimant’s reasonable attorney’s fees and costs. If the carrier is in need of additional information regarding the cure amount or any other issue, please contact the undersigned for any requested clarification.
Comments
User Id Date Added Comment
slaoc@allstate.com 05-02-2025 May 2 , 2025 Please allow this correspondence to serve as Castle Key Insurance Company’s updated response to your Civil Remedy Notice of Insurer Violations, filing number 809458. Castle Key Insurance Company continues to specifically denies the allegations set forth in the Civil Remedy Notice of Insurer Violations. At all time, Castle Key Insurance Company has acted in good faith. Castle Key Insurance Company resolved any and all the named insured's disputed damages, claims and alleged “Bad Faith” claim handling with the insured’s law firm with a negotiated settlement with a global full and final release of all claims of all policy coverages and damages and any and all Bad Faith allegations with the represented insured and the insured retained law firm. At all times, Castle Key Insurance Company has acted in good faith in investigating and handling the claim. Castle Key Insurance Company has not breached any duty owed to you. If you have any questions or if you wish to discuss this matter in further detail, please do not hesitate to contact our office. Shane Lancaster Claim Service Representative 443-565-7071 P.O. Box 672041 Dallas, TX, 75267
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