Civil Remedy Notice of Insurer Violations
Login

Filing Number:     809782
Filing Accepted:  3/5/2025
         Print Filing
Complainant
Last/Business Name *  
BRUNETTE   First Name   DONALD W.
Street Address * 1002 ORCHID LN
City, State Zip * BRADENTON, FL 34208
Email Address * BARB62BRUNETTE@GMAIL.COM
Complainant Type: * Insured
Insured
Last/Business Name*   BRUNETTE   First Name   DONALD W.
Policy # * 2MR192923001 Claim #* 00201847196
Attorney
Attorney is Applicable
Last Name* INNOCENT First Name * KIMBERLY Initial
Street Address* 1580 SAWGRASS CORPORATE PARKWAY, SUITE 130
City, State Zip* SUNRISE , FL 33323
Email Address * KIMBERLY@INNOCENTLAWFIRM.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   AMERICAN SECURITY INSURANCE COMPANY
NAIC Company Code 42978
 
Name of individual responsible for violation (if any):* STACY BARNES
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
Claim Denial
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)(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)(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.

Despite requests for a certified copy of the Insured’s Policy, the Carrier has yet to provide the same. Notwithstanding, based on information and belief, the INSURED believes the specific policy language that is relevant to the violation is as follows: COVERAGE A - Dwelling 1. Property Covered We cover a. The 1-4 family dwelling on the described location shown in the Declarations, used principally for dwelling purposes, including structures attached to the dwelling; b. Materials and supplies located on or next to the described location used to construct, alter or repair the dwelling or other structures on the described location; and c. If not otherwise covered in this Certificate, building equipment and outdoor equipment used for the service of and located on the described location. 2. Property Not Covered a. Personal property of any kind. b. Outdoor trees, shrubs, plants and lawns. c. Outdoor swimming pools; fences, piers, wharves and docks; beach or diving platforms or appurtenances; retaining walls not constituting a part of buildings; walks, roadway; and other paved surfaces. d. Cost of excavations, grading or filling. e. Foundations of buildings, machinery, boilers or engines which foundations are below the surface of the ground. f. Pilings, piers, pipes, flues and drains which are underground. g. Pilings which are below the low water mark. h. Land, including land on which the residential property is located. PERILS INSURED AGAINST COVERAGE A - DWELLING and COVERAGE B - OTHER STRUCTURES We insure against risk of direct loss to property described in Coverages A and B only if that loss is a physical loss to property. THIS ENDORSEMENT CHANGES THE CERTIFICATE. PLEASE READ IT CAREFULLY. It is understood and agreed that throughout this Certificate you and your refer to the financial institution as named insured and the borrower shown in the Declarations. No coverage will be afforded to any borrower other than shown in the Declarations. CONDITIONS 5. Loss Settlement, paragraph b. is replaced by the following: b. Buildings under Coverage A or B at replacement cost without deduction for depreciation, subject to the following: We will pay the cost to repair or replace, after application of any deductible and without deduction for depreciation, but not more than the least of the following amounts: (1) The Limit of Liability under this Certificate that applies to the residential property; (2) The replacement cost of that part of the residential property damaged with material of like kind and quality and for like use; or (3) The necessary amount actually spent to repair or replace the damaged residential property. (4) If the loss or damage occurs to pool enclosures, cabanas, screened porches or other shelter-type structures attached to the dwelling, we will pay no more than ten percent (10%) of the Limit of Liability of this Certificate applying to the Dwelling. This Condition does not increase the Limit of Liability applying to the Dwelling. 12. Loss Payment is deleted and replaced by the following: 12. Loss Payment. We will adjust all losses with the named insured. Loss will be made payable to the named insured and the borrower as their interests appear, either by a single instrument or by separate instruments payable respectively to the named insured and the borrower, at our option. No coverage will be available to any mortgagee other than that shown as the named insured on the Declarations. Provided you have complied with all the terms of this Certificate, we will pay for covered loss or damage upon the earliest of the following: a. Within 20 days after we receive the sworn proof of loss and reach written agreement with you; b. Within 30 days after we receive the sworn proof of loss and: (1) There is an entry of a final judgment; or (2) There is a filing of an appraisal award with us; or c. Within 60 days of receiving notice of an initial, reopened or supplemental claim, unless we deny the claim during that time or factors beyond our control. If a portion of the claim is denied, then the 60-day time period for payment of claim relates to the portion of the claim that is not denied.
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

In Florida, the work of adjusting insurance claims engages the public trust. American Security Insurance Company (“INSURER”) has breached the public’s trust by its adjustment of Donald W. Brunette’s (“INSURED”) claim of loss. INSURER’S principal address is 260 Interstate North Circle SE, Atlanta, GA 30339. INSURER has failed to create and implement adequate guidelines for the proper investigation and evaluation of claims, claims handling, and for training and supervision of employees resulting in statutory violations as set forth above. INSURER has failed and/or refused to thoroughly, accurately, and completely investigate and evaluate the INSURED'S insurance claim for damages. INSURER has failed to promptly settle the INSUREDS’ insurance claim when the obligation to settle the insurance claim had become reasonably clear. To date, notwithstanding the INSURED'S pleas otherwise, INSURER has continued to refuse to acknowledge its obligation to conduct a proper investigation, and to tender the full amount of insurance monies due and owing its INSURED under the policy. This claim involves the INSURED'S property located at 1002 Orchid Ln, Bradenton, FL 34208, which sustained significant damage from wind and water damage due to Hurricane Milton on or around October 9, 2024. Specifically, the Property's roof system and awnings were damaged by Hurricane Milton, resulting in substantial water intrusion and interior water damage. The INSURED timely reported the loss to the INSURER. The INSURER acknowledged the claim and assigned a field adjuster to inspect the loss. After an investigation, the INSURER acknowledged that the roof sustained wind damage and that water had intruded into the home’s interior as a direct result of this wind damage. Despite this acknowledgment, the INSURER has only afforded coverage for a partial repair of the roof rather than a full replacement, ignoring the fact that the roof tiles are no longer manufactured and cannot be matched. The INSURER’s refusal to replace the roof contradicts industry standards, Florida Building Code requirements, and the terms of the policy, which require repairs to restore the Property to its pre-loss condition. Additionally, the INSURER has under-scoped and undervalued the interior damages caused by the water intrusion. Despite clear evidence of extensive interior damage, the INSURER has failed to fully indemnify the INSURED for the necessary repairs, instead offering an inadequate payment that does not reflect the full extent of the loss. Further, the INSURER has failed to cite any policy exclusions that would justify its failure to properly adjust the scope of the loss. At no point has the INSURER advised the INSURED that any particular provision of the policy precludes full indemnification for the covered damages. On October 30, 2024, Claims Examiner Stacy Barnes, on behalf of Claims Examiner Rashamir Thibodeaux, sent correspondence stating: "Please give your repairer a copy of the enclosed estimate before repairs begin. If the repairer believes there are additional damages or costs attributed to this loss, please contact us to discuss the differences. Before we can consider any additional payment, we must agree the damage is related to this loss." In good faith reliance on this statement, the INSURED's designated repairer, Kyle Cherone, representing Green Coast Roofing and Contracting, provided a comparative estimate and photographic documentation of supplementary damage resulting from Hurricane Milton. Mr. Cherone also included an ITEL report confirming that the existing roof tiles were obsolete on or about October 31, 2024. Notwithstanding, the INSURER has taken no action regarding these submissions and has failed to issue any additional payments. The INSURER’s conduct constitutes bad faith and an improper attempt to minimize its financial exposure at the expense of the INSURED, who has complied with all policy obligations. The INSURER has engaged in delay tactics and wrongful underpayment of the claim, leaving the INSURED with damaged property and forcing them to bear significant out-of-pocket expenses. To date, it has been one hundred and forty two (142) days since the claim was reported, and INSURER has failed to fully indemnify its INSURED for this loss. The INSURED, of course, is very disappointed with INSURER’s poor investigation and nonpayment of the claim. The INSURED has retained a repairer, Kyle Cherone of Green Coast Roofing and Contracting who has prepared an estimate of the INSURED'S damages, which totals $100,197.12. Therefore, demand is hereby made as follows: Estimate $100,197.12, Less Deductible $15,619.00, Less Prior Payments $4,641.97, TOTAL $79,936.15. The concept of insurance is that the insurer will investigate and grant timely and prompt indemnity or security against a contingent loss. 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 upon determinable contingencies. Inherent in that definition is the fact that payment must be made timely and promptly so that the INSURED may mitigate their damages and be put back into the position they were in prior to the loss as quickly as possible. INSURER has breached this duty. The INSURED was and still is, forced to expend out-of-pocket funds to submit his insurance claim, e.g., retaining a public adjuster, an attorney, and other experts to force INSURER to honor its obligations under the insurance policy and to pay all the insurance proceeds due and owing to them. INSURER’s refusal and/or failure to settle the insurance claim, when under all circumstances it could have and should have done so, had it acted fairly and honestly toward the INSURED, is wrongful conduct. Therefore, to cure the defects outlined in this Civil Remedy Notice, INSURER must tender to the INSURED $79,936.15 as set forth above plus interest. This notice is given in order to perfect the right to pursue the civil remedy authorized by Fla. Stat. §624.155. Failure to tender the demanded amount within the cure period will result in the insured pursuing all available legal remedies, including but not limited to a bad-faith lawsuit pursuant to Florida law. Additionally, this notice will be submitted to the Florida Department of Financial Services and may result in further regulatory review of the INSURER’s handling of claims.
Comments
User Id Date Added Comment
slevy@shutts.com 05-01-2025 VIA UPLOAD onto DFS website Florida Department of Financial Services Division of Insurance Regulation Consumer Assistance / Civil Remedy Section Larson Building, 200 East Gaines Street Tallahassee, Florida 32399-0322 Re: CIVIL REMEDY OF INSURER VIOLATION DOI File No.: 809782 Complainant: Donald W. Brunette Claim No.: 00201847196 Filed by: Kimberly Innocent, Esq. Reported DOL: October 9, 2024 Dear Sir or Madam: This law firm represents American Security Insurance Company (“American Security”) with regard to the Civil Remedy Notice of Insurer Violation (“CRN”) filed on behalf of Donald W. Brunette (the “Complainant”), on March 5, 2025. The CRN involves a claim reported under Certificate Number 2MR07691929230 (the “Certificate”) issued by American Security under the provisions of Donald W. Brunette’s lender’s Master Policy. The Certificate has an effective period of January 29, 2024 through January 29, 2025, pursuant to which Truist Bank (the “Lender”), is the “Named Insured” and Donald W. Brunette and Barbara J. Brunette are the Borrowers (the “Borrowers”). The Certificate insures, without limitation and as more fully set forth therein in accordance with the terms, conditions and exclusions, the dwelling located at 1002 Orchid Lane, Bradenton, Florida 34208 (the “Property”), which secures a note and recorded mortgage owned by the Lender. The CRN pertains to an alleged windstorm damage claim (the “Claim”) that reportedly occurred on October 9, 2024. The Claim, assigned claim number 00201847196, was reported to American Security on October 15, 2024. That day before the Claim was reported, on October 14, 2024, American Security received an email from Green Coast Homes, Inc. d/b/a Green Coast Roofing & Solar (“Green Coast”) attaching its report for alleged damages to the roof and a contingency agreement/direction to pay, which was executed by the Complainant. On October 15, 2024, American Security sent a letter to the Lender acknowledging the Claim and assigned an adjuster to conduct an inspection of the Claim. A copy of this letter was also sent to the Complainant. That same day, on October 15, 2024, American Security sent an email to the Complainant in receipt of the Claim and confirming Complainant’s request to receive all communications via e-mail. On or about October 22, 2024, an adjuster inspected the Property on behalf of American Security. On October 30, 2024, American Security sent an explanation of benefits letter to the Lender issuing payment to the Complainant in the amounts of $3,729.35 relating to the dwelling and $912.62 relating to the other structure. A copy of the estimate was also enclosed. A copy of this letter was also sent to the Complainant. On November 1, 2024, Green Coast sent an email to American Security attaching its invoice for alleged tarp services performed at the Property. On January 10, 2025, American Security sent an explanation of benefits letter to the Complainant issuing payment to Green Coast in the amount of $1,500.00 for the tarp services performed the Property. A copy of this letter was also sent to the Lender and Green Coast. On January 17, 2025, American Security received an email from The Innocent Law Firm (“The Innocent Law Firm”) attaching its letter of representation on behalf of the Complainant. Over a month later on March 5, 2025, the Complainant, through The Innocent Law Firm, filed a Notice of Intent to Initiate Litigation (the “Notice of Intent”). That same day, on March 5, 2025, Complainant filed this Civil Remedy Notice. O n March 19, 2025, American Security sent a letter to The Innocent Law Firm in receipt of the Notice of Intent and invoked its right to appraisal. The CRN is deficient and fails to comply with the requirements of Section 624.155, Fla. Stat. Specifically, the CRN does not provide an explanation as to how American Security failed to comply with the terms of the Certificate with specific factual support of specific language in the Certificate pertaining to the Claim, such that it failed to provide American Security with an opportunity to cure. Next, the CRN makes false, boilerplate accusations, and does not contain any specific facts supporting the violations alleged. The failure to provide any factual support for the alleged violations renders the CRN fatally defective. Contrary to the allegations of the CRN, at no time has American Security ever acted in bad faith. At all times material to this Claim, American Security: (a) Acted in good faith to adjust the Claim, acting fairly and honestly in its dealings with Complainant and his representatives regarding the Claim; (b) Promptly investigated the Claim; (c) Acknowledged and acted promptly in response to the reported Claim and in all communications with the Complainant and his representatives; and (d) Promptly provided a reasonable explanation in writing regarding its coverage determination of the Claim under the Certificate. American Security has acted reasonably and in good faith at all times in adjusting this Claim and believes that the allegations in this CRN lack specificity, are baseless and without merit. If you are in need of or seek any further information, please feel free to contact the undersigned. Very truly yours, /s/ Sara Levy Sara Levy
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.

Before submitting a Notice using this system, please verify that all text has been entered correctly and completely. Once the Notice has been submitted, the text cannot be changed or deleted.




DFS-10-363
Rev. 10/14/2008