Filing Number: 811556
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| Filing Accepted: 3/17/2025 |
| Last/Business Name
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| Street Address
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702 S BELLA VISTA ST |
| City, State Zip
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TAMPA,
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33609
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| Email Address
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MEGANMORTON28@GMAIL.COM |
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Insured |
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| Last/Business Name* |
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REEVES |
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First Name |
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MEGAN |
| Policy # * |
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OIC30112181 |
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Claim #* |
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24FLHOV0016552 |
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Attorney is Applicable
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| Last Name* |
SCHILLING
First Name *
JEREMY
Initial
T
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| Street Address* |
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1700 NW 64TH ST SUITE 460 |
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FORT LAUDERDALE
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FLORIDA
33309
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| Email Address * |
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AGRONDIN@SCHILLINGSILVERS.COM |
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| Insurer Type
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Authorized Insurer
Unauthorized Insurer
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| Insurer Name |
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| Insurer Name* |
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OLYMPUS INSURANCE COMPANY
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| Insurer Name* |
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| Street Address* |
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| City, State Zip* |
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,
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NAIC Company Code 12954 |
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| Name of individual responsible for violation (if any):*
OLYMPUS CLAIMS ADJUSTER
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| Type of Insurance
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Residential Property & Casualty
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| Reason for Notice
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Unsatisfactory Settlement Offer
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Claim Denial
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Claim Delay
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Unfair Trade Practice
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Statutory provision(s) which the insurer allegedly violated.
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| 626.9541(1)(i)(2) |
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A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy.
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| 626.9541(1)(i)(3)(a) |
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Failing to adopt and implement standards for the proper investigation of claims.
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| 626.9541(1)(i)(3)(b) |
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Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
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| 626.9541(1)(i)(3)(g) |
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Failing to promptly notify the insured of any additional information necessary for the processing of a claim.
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Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
E. Mediation Or Appraisal
If you and we fail to agree on the settlement regarding the loss, prior to filing suit, you must notify us of your
disagreement in writing as outlined in SECTION I – CONDITIONS, G. Suit Against Us so that either party may:
1. Demand a mediation of the loss in accordance with the rules established by the Florida Department of
Financial Services.
a. For the purposes of mediation, the term “claim” refers to any dispute between an insurer and a
policyholder relating to a material issue of fact.
b. The loss amount must be $500 or more, prior to application of the deductible; or there must be a
difference of $500 or more between the loss settlement amount we offer and the loss settlement amount
that you request.
c. The settlement in the course of the mediation is binding only if both parties agree, in writing, on a
settlement and, you have not rescinded the settlement within 3 business days after reaching settlement.
You may not rescind the settlement after cashing or depositing the settlement check or draft we
provided to you.
d. We will pay the cost of conducting any mediation conference except when you fail to appear at a
conference.
That conference will then be rescheduled upon your payment of the mediator's fee for that rescheduled
conference. If we fail to appear at a mediation conference, we will pay:
(1) Your actual cash expenses you incur in attending the conference; and
(2) The mediator’s fee for the rescheduled conference.
2. Demand appraisal.
a. If you and we fail to agree on the amount of the loss, either party may demand an appraisal by
presenting the other party with a request for appraisal of the amount of loss.
The request for appraisal must be in writing and shall include an estimate of the amount of any dispute
that results from the covered cause of loss.
The estimate shall include a description of each item of damaged property in dispute as a result of the
covered loss, along with the extent of damage and the estimated amount to repair or replace the item.
If the other party agrees in writing to participate in appraisal, then the appraisal shall proceed.
b. In this event, each party will choose a competent and disinterested appraiser and notify the other of the
appraiser’s identity within 20 days after receiving a written demand from the other.
c. The two appraisers will choose a competent and disinterested umpire. If the appraisers are unable to
agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where
the “residence premises” is located to select an umpire.
d. The appraisers will separately set the amount of loss. If the appraisers submit a written report of an
agreement to us, the amount agreed upon will be the amount of loss.
e. If they fail to agree, the two appraisers will submit their differences to the umpire. A decision agreed to
by any two of the three will set the amount of loss.
f. The appraisal award will be in writing and shall include the following:
(1) A detailed list, including the amount to repair or replace, of each specific item included in the award
from the appraisal findings;
(2) The agreed amount of each item, its replacement cost value and corresponding actual cash value;
and
(3) A statement of “This award is made subject to the terms and conditions of the policy.”
g. Each party will:
(1) Pay its own appraiser, including their costs associated with producing the estimate described in
2.a. above; and
(2) Bear the fees and expenses of the appraisal and umpire equally.
h. You, we, the appraisers, and the umpire shall be given reasonable and timely access to inspect the
damaged property, in accordance with the terms of the policy.
If however, we demanded the mediation and either party rejects the mediation results, you are not required to
submit to, or participate in, any appraisal of the loss as a precondition to action against us for failure to pay the
loss.
If you and we fail to agree on the settlement regarding the loss, prior to filing suit, you must notify us of your
disagreement and intent to file suit in writing as outlined in SECTION I – CONDITIONS, G. Suit Against Us to
allow us an opportunity to exercise our right to demand mediation or appraisal.
In Form HO 00 06, F. Other Insurance And Service Agreement is deleted and replaced by the following:
F. Other Insurance And Service Agreement
If a loss covered by this policy is also covered by other insurance or a service agreement, this insurance is
excess over the amount recoverable under such other insurance or service agreement.
However, if a loss covered by this policy is covered by other insurance covering the same property, and
such other insurance is excess insurance over the amount recoverable under any other policy covering the
same property, we will pay only the proportion of the loss that the limit of liability that applies under this
policy bears to the total amount of such insurance covering the loss.
Service agreement means a service plan, property restoration plan, home warranty or other similar service
warranty agreement, even if it is characterized as insurance.
G. Suit Against Us is deleted and replaced by the following:
G. Suit Against Us
No action can be brought against us by you unless there has been full compliance with all of the terms and
conditions under SECTION I of this policy and the action is started within 5 years after the date of loss.
Prior to filing suit, you must provide the Florida Department of Financial Services with written notice of intent
to initiate litigation at least 10 business days before filing suit under the policy, in accordance with s.
627.70152, Florida Statutes.
H. Our Option is deleted and replaced by the following:
H. Our Option
1. At our option, in lieu of issuing any loss payment, if we choose to exercise our option:
a. For losses settled on an actual cash value basis as outlined in SECTION I – CONDITIONS, C.
Loss Settlement, we may repair or replace any part of the damaged property with material or
property of like kind and quality.
b. For losses insured for replacement cost as outlined in SECTION I – CONDITIONS, C. Loss
Settlement, we may elect to repair or replace any or all of the damaged property with material of
like kind and quality without deduction for depreciation.
2. If we choose to exercise our option, we will provide written notice to you no later than 30 days after our
inspection of the loss.
We may invoke our option to repair within the stated time frame after either a “supplemental claim” or
“reopened claim” regardless of whether we invoked our option during the adjustment of the initial claim
or a prior “supplemental claim”.
3. If we choose to exercise our option, you must cooperate with and grant us, or any person authorized
to act on our behalf, reasonable access to the property in order for repairs to be made.
4. You are responsible for payment of the deductible stated in your Declarations Page.
5. You must comply with the duties described in SECTION I – CONDITIONS, B. Duties After Loss,
paragraph 7.
6. As often as is reasonably necessary to effectuate repairs, you must:
a. Provide access to the property;
b. Execute any necessary city, county, or municipal permits for repairs to be undertaken;
c. Execute any work authorizations to allow contractors and related parties entry to the property;
d. Otherwise cooperate with the repairs to the property.
Our right to exercise our option to repair or replace, and our decision to do so, is a material part of this
contract and under no circumstances relieves you or us of our mutual duties and obligations under this
contract. Any contract entered into between you and any repair person(s), contractor, or other person or
company to perform repairs or services except reasonable emergency measures for any loss attributed to
a covered peril shall not interfere with this right.
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Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
Artha and Megan Reeves (“Insureds”) purchased an insurance policy (“Policy”) from Olympus Insurance Company (“Olympus”), bearing policy number OIC30112181, for the property located at 6325 McCoy Road, Orlando, Florida 32822 (“Property.”)
During the applicable Policy period, the Property sustained damage as a result of wind from Hurricane Milton on or about October 8, 2024.
On November 7th, 2024, Olympus concluded based on their investigation, the roof, chimney, and interior water damage to the home was damaged as a result of Hurricane Milton. Consequently, Olympus acknowledged that the subject claim is covered under the policy. Olympus selected the option to repair the roof, chimney, and interior of the home. Olympus decided that repairs were to be completed through the Olympus Elite Repair Program. However, Olympus did not provide notice of the Insured right to participate in the Department of Financial Services (DFS) mediation, making the repair option invalid.
An insurance company’s duty to notify its insured of the insured’s right to participate in the Florida Department of Financial Services Mediation Program is governed by Florida Statute 627.7015 and the Florida Administrative Code Rule 69J-166.031.
Florida Statute 627.7015 sets forth an alternative mediation procedure for resolution of disputed property damage claims. The statute essentially lays out the framework for a mediation conference to allow the parties to attempt to resolve a disputed claim for the purpose of protecting the Insured from a potentially expensive and time-consuming adversarial appraisal process.
Under Subsection (2) of the statute, “At the time a first-party claim within the scope of this section is filed by the policyholder, the insurer shall notify the policyholder of its right to participate in the mediation program under this section. 627.7015(2), Florida Statutes (2022). Additionally, “If the insurer fails to comply with subsection (2) by failing to notify a policyholder of its right to participate in the mediation program... the policyholder is not required to submit to or participate in any contractual loss appraisal process of the property loss damage as a precondition to legal action for breach of contract.” 627.7015(7), Florida Statutes (2022).
Critically, subparagraph 9 of the statute defines “claim” for the purposes of this section. The term “claim” refers to any dispute between an insurer and a policyholder relating to a material issue of fact.” 627.7015(9), Florida Statutes (2022). So, while a cursory reading of the statute may indicate that the Mediation Notice be sent as soon as the claim is made, particular attention must be paid to the other sections of the Statute, including the definition of what is considered a claim under 627.7015.
In the instant matter, the DFS Mediation pamphlet has not been provided to or on behalf of the Insureds as of the date that this CRN is filed. Without properly providing the insured with their options regarding mediation, Olympus cannot select the option to repair because they failed to provide the pamphlet that notifies the insured about their rights to participate in the mediation program.
Florida Administrative Code Rule 69J-166.031 implements Florida Statute 627.7015. Fla. Admin. Code R. 69J-166.031(1). Thus, the Florida Department of Financial Services is authorized by law (Fla. Stat. 627.7015) to take the action specified in the law, engage in a rulemaking process, and create a framework for the Mediation of Residential Property Insurance Claims.
Applying the Rule to the facts of this case, specifically subsection (4)(a)(1) states: At the time a first-party claim which falls within the scope of this rule is filed by the policyholder, the insurer shall notify the policyholder of the right to participate in this program. An insurer is required to make the claim determination or elect to repair pursuant to section 627.70131, F.S., before sending a notice of the right to mediate claims.
The plain language of Statute 627.7015, as well as that of Rule 69J–166.031, clearly provide that if an insurer fails to properly comply with the Statute, the insurer shall not be able to invoke the option to repair without properly providing the insured with their options.
Here. Olympus made its coverage determination on or about November 7, 2024, including invoking an option to repair that they did not have because they have yet to comply with DFS mediation protocols established in the Florida Statutes and Administrative Code. Again, as of the date of this CRN, Olympus has failed to provide notice of the Insureds right to DFS mediation in compliance with Florida Statutes and Administrative Code.
By stating the above detailed facts, it is clear that Olympus has violated the following Florida Statutes:
• 626.9541(1)(i)(2). A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy;
o There is public policy behind the requirement for DFS Mediation. That policy requires an insurance company to educate an insured as to the right to participate in mediation before submitting to Appraisal and/or an insurance company’s alleged right to repair the insured premises.
o Olympus, in failing to educate Mr. and Mrs. Reeves, failed to educate them as to their right to mediation. The intended effect is clear: To make Mr. and Mrs. Reeves believe they had no right to the continued adjustment of their claim and to assume the response from Olympus as their only avenue.
o However, in addition to the right to DFS Mediation, they also have other options. Namely invoking the Appraisal provision to resolve the scope and price of the needed repairs.
• 626.9541(1)(i)(3)(a) Failing to adopt and implement standards for the proper investigation of claims;
o Olympus at best negligently failed to educate Mr. and Mrs. Reeves as to their right to submit to DFS mediation. At worst, they intentionally attempted to conceal that the Insureds had the right to resolve the dispute as to the scope and/or amount of the needed repairs.
• 626.9541(1)(i)(3)(b) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue;
o Olympus at best negligently failed to educate Mr. and Mrs. Reeves as to their right to submit to DFS mediation. At worst, they intentionally attempted to conceal that the Insureds had the right to resolve the dispute as to the scope and/or amount of the needed repairs.
• 626.9541(1)(i)(3)(g) Failing to promptly notify the insured of any additional information necessary for the processing of a claim; or
o Olympus at best negligently failed to educate Mr. and Mrs. Reeves as to their right to submit to DFS mediation. At worst, they intentionally attempted to conceal that the Insureds had the right to resolve the dispute as to the scope and/or amount of the needed repairs.
As a direct result of Olympus’ breach of the Policy, the Insured was forced to seek the help of legal counsel to assist. Based on the above, it is irrefutable evidence that Olympus knowingly and intentionally performs subpar investigations into its claims in order to further disadvantage the Insured. Olympus used their familiarity of the mediation system to the disadvantage of the Insured. The financial detriment caused to the Insured is a direct result of Olympus’ reckless investigation. Upon information and belief, the aforementioned actions complained of, among others, were made by Olympus so often as to constitute a general business practice, evidencing a motive to enhance Olympus’ profits and designed to cause a detrimental effect to its policyholders.
The above clearly depicts that Olympus adjusted this claim in bad faith and that Olympus is in direct violation of Unfair Claims Practices by knowingly underpaying a covered claim.
This notice is given in order to perfect the right to pursue the civil remedy authorized by Section 624.155, Florida Statutes, should Olympus fail to cure the violations set forth in this Civil Remedy Notice within the given cure period. Therefore, to cure the defects outlined in this Civil Remedy Notice, Olympus must create and implement adequate guidelines for proper investigation and evaluation as to claims handling and for the training and supervision of employees, which will avoid future statutory violations as set forth above, and to prevent this from occurring in the future; create and implement adequate guidelines for the proper investigation and evaluation of these types of claims, and for the training and supervision of employees with regard to these types of claims to ensure Olympus’ claims handling procedures are adequate; act fairly and honestly towards the Insured with due regard for their best interests in attempting to settle the claim; immediately tender all insurance benefits due and owing to the Insured under the Policy pursuant to the relevant policy provisions provided therein that would reasonably place the property back to its pre-loss condition, including, but not limited to, all interest due and owing under applicable Florida Statutes; and pay the Insured the fair value of the insurance claim in the amount of $571,026.35. The Insured expects Olympus to respond to this CRN stating that it does not comply with Florida Statutes and that Olympus will ignore the specific allegations herein and fail to refute them with any factual basis.
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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.
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DFS-10-363
Rev. 10/14/2008
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