Civil Remedy Notice of Insurer Violations
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Filing Number:     811866
Filing Accepted:  3/19/2025
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Complainant
Last/Business Name *  
R&R FAMILY HOLDINGS LLC   First Name  
Street Address * 3120 SOUTHGATE CR.
City, State Zip * SARASOTA, FL 34239
Email Address * TIM@MAPPREALTY.COM
Complainant Type: * Insured
Insured
Last/Business Name*   R&R FAMILY HOLDINGS LLC   First Name   FRANCIS
Policy # * 2018-811019-05 Claim #* SDA22042360
Attorney
Attorney is Applicable
Last Name* KING First Name * FRANCIS Initial
Street Address* 2944 10TH AVE. N.
City, State Zip* ST PETERSBURG , FL 33713
Email Address * MATT@FRANCISMKING.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   VELOCITY SPECIALTY INSURANCE COMPANY
NAIC Company Code 39640
 
Name of individual responsible for violation (if any):* SAMIR MEHTA, SENIOR ACCOUNT CONSULTANT
Type of Insurance * Commercial Property & Casualty   
Reason for Notice *
Unsatisfactory Settlement Offer
* 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.
* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Coverage Limit B; Hurricane Deductible; Bronze Package Limits; Additional Coverages and Sub Limits 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 total loss suffered by the insured as a result of Hurricane Ian was $103,611.58. Insured made a claim in this amount to the insurer. Insurer asserts in their response that of the total claim made, $19,846.24 is subject to Coverage A of the subject insurance policy. This amount was allowed in full because the coverage limit for Coverage A is $740,000.00. Defendant further asserts in their response that of the total claim made, $83,765.34 is subject to Coverage B of the subject insurance policy. This amount was limited to $10,000.00 based on the alleged limits of Coverage B being $10,000.00. However, the insured elected to purchase the Bronze Package Limits, which increased the limits of Coverage B to $50,000.00. You can see the election to purchase the Bronze Package Limits on page 2 of the Declaration. The increase to $50,000.00 based on the purchase of the Bronze Package Limits can be seen on line L. of the Additional Coverages and Sub Limits Endorsement. Based on the increase in the limits to Coverage B the amount claimed over coverage A & B limits is $69,846.24. The amount that should have been paid to the insured following application of the hurricane deductible is $31,746.24,
Comments
User Id Date Added Comment
lori.eller@phelps.com 05-16-2025 VIA ELECTRONIC SUBMISSION Florida Department of Financial Services Bureau of Consumer Assistance Civil Remedy Section Larson Building 200 East Gaines Street Tallahassee, Florida 32399 Re: Insured: R&R Family Holdings, LLC Insurers: Velocity Specialty Insurance Company (f/k/a Independent Specialty Insurance Company) and Certain Underwriters at Lloyd’s and Other Insurers Subscribing to Binding Authority B604510568622021 Policy No.: 2018-811019-05 Reported Date of Loss: September 28, 2022 Claim No.: SDA22042360 Loss Location: 775 Tamiami Trail, Port Charlotte, Florida 33953 DFS File No.: 811866 Accepted by DFS: March 19, 2025 To Whom It May Concern: We represent Velocity Specialty Insurance Company f/k/a Independent Specialty Insurance Company and Certain Underwriters at Lloyd’s and Other Insurers Subscribing to Binding Authority B604510568622021 (collectively, the “Insurers”), the property insurers for R&R Family Holdings, LLC (the “Insured”) under Policy Number 2018-811019-05 (the “Policy”), with effective dates of April 11, 2022 to April 11, 2023. The Policy provided coverage for the commercial property located at 775 Tamiami Trail, Port Charlotte, Florida 33953 (the “Property”) subject to certain terms, conditions, exclusions, limitations, definitions, and endorsements. We write on the Insurers’ behalf in response to the Insured’s Civil Remedy Notice of Insurer Violations (the “Notice”) filed against Velocity Specialty Insurance Company (“Velocity”). The Notice bears filing number 811866 with an acceptance date of March 19, 2025. In the Notice, Mr. King, on behalf of the Insured, alleges that Velocity violated section 624.155(1)(b)(1), Florida Statutes, by “[n]ot 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.” The Notice alleges that the “Reasons for Notice” is “Unsatisfactory Settlement Offer.” The Insurers categorically deny that they or any of their representatives engaged in any prohibited conduct or violated the statute 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. The Notice is vague and deficient in describing the facts and circumstances giving rise to the alleged statutory violation and does not provide the Insurers with a meaningful opportunity to “cure” the alleged violation. Despite the deficiencies in the Notice, a detailed response to the Notice was sent via e-mail to counsel of record on May 16, 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. Respectfully, /s/ Hanna M. Perry Hanna M. Perry Cc: Via E-mail Francis King, Esq. Francis M. King, PLLC 2944 10th Ave. N. St. Petersburg, FL 33713 matt@francismking.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