Civil Remedy Notice of Insurer Violations
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Filing Number:     812649
Filing Accepted:  3/24/2025
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Complainant
Last/Business Name *  
TAYLOR MORRISON OF FLORIDA, INC.   First Name  
Street Address * 4900 NORTH SCOTTSDALE ROAD, SUITE 2000
City, State Zip * SCOTTSDALE, AZ 85251
Email Address * LKERR@COGBURNLEGAL.COM
Complainant Type: * Insured
Insured
Last/Business Name*   CONSTRUCTION COATINGS GROUP INC   First Name  
Policy # * GLP 0148978 02 (2015-16); GLP 0148978 04 (2016-17) Claim #* 115514
Attorney
Attorney is Applicable
Last Name* KERR First Name * LAUREN Initial D
Street Address* 777 S. HARBOUR ISLAND BLVD., SUITE 245
City, State Zip* TAMPA , FL 33602
Email Address * LKERR@COGBURNLEGAL.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   NATIONAL BUILDERS INSURANCE COMPANY
NAIC Company Code 16632
 
Name of individual responsible for violation (if any):* MELISSA WELDEN AND/OR BONNIE DEROOS
Type of Insurance * Commercial Property & Casualty   
Reason for Notice *
Claim Denial
Claim Delay
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)(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.

Construction Coatings Group, Inc. (“CCG”) purchased at least two commercial general liability (“CGL”) policies from Vinings Insurance Company N/K/A National Builders Insurance Company ("Builders") providing coverage for liability because of property damage resulting from CCG’s work, specifically Policy Numbers GLP 0148978 02 (2015-16) and GLP 0148978 04 (2016-17) (the "Policies"). The insuring agreements of the Policies state, in relevant part: We will pay those sums that the insured becomes legally obligated to pay as damages because of … “property damage” to which this insurance applies. We will have the right and duty to defend the insured against any “suit” seeking those damages … The Policies define “property damage” to include: a. Physical injury to tangible property, including all resulting loss of use of that property … or b. Loss of use of tangible property that is not physically injured … For coverage to be afforded, “property damage” must have been caused by an “occurrence,” which is defined under the Policies as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” Not only do the Policies provide coverage to the named insured, CCG, they also provide coverage to Taylor Morrison of Florida, Inc. (“Taylor Morrison”) as an additional insured. The Policies contain a “General Liability Extra Coverage Endorsement”, which states: SECTION II – WHO IS AN INSURED – is revised as follows: 1. Additional Insureds. Section II – Who Is An Insured is amended to include as an additional insured: 1. Any person or organization for whom you are performing operations when you and such person or organization have agreed in writing in a contract or agreement that such person or organization be added as an additional insured on your policy … The 2015-16 Policy also contains a similar endorsement extending the “blanket” additional insured coverage to CCG’s completed operations. The subcontract between Taylor Morrison and CCG required that CCG name Taylor Morrison as an additional insured on its CGL policies of insurance.
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

This civil remedy notice is being filed because Vinings Insurance Company N/K/A National Builders Insurance Company ("Builders") has failed to address Taylor Morrison of Florida, Inc.’s (“Taylor Morrison”) tender of defense in good faith. The Builders policies implicated are GLP 0148978 02 (2015-16) and GLP 0148978 04 (2016-17) (the “Policies”). Taylor Morrison has been named as a defendant in a lawsuit filed by Knut and Kim Florens (the “Plaintiffs”) against Taylor Morrison of Florida, Inc. (the “Lawsuit”), styled as Knut Robert Florens and Kim Maria Teresa Florens v. Taylor Morrison of Florida, Inc., Sarasota County, Florida Case No. 2024 CA 002092. The Lawsuit alleges property damage resulting from stucco system-related claims due to work performed by Taylor Morrison’s stucco subcontractor, Construction Coatings Group, Inc. (“CCG”). During original construction, CCG performed work on the project pursuant to the terms and conditions of its subcontract with Taylor Morrison. Because of the pending allegations and CCG’s work at the subject property, Taylor Morrison has named CCG as a third-party defendant to the Lawsuit and tendered the claim to Builders. To date, Builders has failed to provide either Taylor Morrison or CCG with a defense in the Lawsuit. Included in the subcontract between Taylor Morrison and CCG was a requirement that CCG would secure commercial general liability ("CGL") insurance and name Taylor Morrison as an Additional Insured on such policies of insurance. CCG purchased at least two policies, the Policies, from Builders which provide coverage for liability because of property damage resulting from CCG’s work. This coverage extends to both the named insured, CCG, and the additional insured, Taylor Morrison. The Policies provide blanket additional insured coverage where required by written contract. Because the written subcontract required CCG to name Taylor Morrison as an additional insured, Taylor Morrison is an additional insured under the Policies. Taylor Morrison tendered its defense to Builders on July 10, 2023. On July 24, 2023, Builders denied Taylor Morrison’s tender, arguing that the claimants could not have suffered damages during the policy term because the claimants are subsequent purchasers of the home at issue and purchased the home after the applicable Policies of insurance. On July 26, 2024, Taylor Morrison again tendered its defense to Builders and provided a copy of the Lawsuit. On July 29, 2024, Builders reaffirmed its prior denial. Builders’ refusal to provide a defense is knowingly wrongful because the lawsuit, as pled, implicates coverage and Builders’ argument conflicts with Florida law. Builders’ denial is apparently based on the “owner-claimant” view, which is not supported by any Florida reported decision and instead represents a view rejected by the majority of courts that have considered it. See Bergen v. Ginnell Mut. Reinsurance Co., 946 F. Supp. 2d 867 (D. Minn 2013); Am. States Ins. Co. v. PIH Beaverton LLC, 2016 U.S. Dist. LEXIS 83188 (D. Or. 2016); Village Homes of Colorado, Inc. v. Travelers Cas. & Sur. Co., 148 P. 3d 293 (Colo. App. 2006). Much like this line of cases rejecting the “owner-claimant” view, there is nothing in the Policies requiring the Plaintiffs to have an ownership interest in the home at issue during the policy periods, only that the property damage itself occur during the policy period(s). Indeed, the Plaintiffs’ complaint merely seeks damages caused by CCG’s work, without reference to timing, implicitly including damages that could have been caused during each of the Policies’ duration. Under Florida law, an insurer's duty to defend is determined solely by the allegations in the underlying complaint. See Category 5 Mgmt. Grp., LLC v. Companion Prop. & Cas. Ins. Co., 76 So. 3d 20, 23 (Fla. 1st. Dist. Ct. App. 2011); see also Lawyers Title Ins. Corp. v. JDC (America) Corp., 52 F.3d 1575, 1580 (11th Cir. 1995). "The duty arises when the relevant pleadings allege facts that 'fairly and potentially bring the suit within policy coverage.'" Lawyers Title Ins. Corp., 52 F.3d at 1580 (quoting Lime Tree Vill. Cmty. Club Ass'n v. State Farm Gen. Ins. Co., 980 F.2d 1402, 1405 (11th Cir. 1993)). The actual facts of the situation are not relevant, such that "the insurer must defend even if facts alleged are actually untrue or legal theories unsound." Id. As a result, the question is not whether the claimants may be able to recover damage that occurred prior to their acquisition to the property, but whether it is possible that they are seeking such damages in their complaint. Because the complaint is not clear that the Plaintiffs are only seeking damages that occurred after their acquisition, Builders owes both Taylor Morrison and CCG a defense. See e.g., Auto-Owners Ins. Co. v. Envtl. House Wrap, Inc., No. 3:17-cv-817-J-34PDB, 2019 U.S. Dist. LEXIS 115898 (M.D. Fla. July 12, 2019). Builders’ refusal to defend Taylor Morrison is a material breach of its contractual and fiduciary obligations under the Policies and is not in good faith. Builders’ failure to defend its insureds has prejudiced and damaged Taylor Morrison. Taylor Morrison has been forced to incur defense costs in the Lawsuit, for which Builders is responsible. The Lawsuit includes allegations of losses covered under the Policies. Under Florida law, Builders’ duty to defend its insureds was triggered by the Plaintiffs’ allegations, whether they are proven to be true or not. Builders’ unreasonable handling of Taylor Morrison’s claim has caused it to incur substantial legal fees and costs in defending itself against the claims. The attorneys' fees and costs that Taylor Morrison has incurred have unjustly burdened Taylor Morrison. Taylor Morrison has exhausted all available options to convince Builders to deal with Taylor Morrison in good faith, to no avail. Taylor Morrison will be filing suit against Builders but is also filing this notice in an effort to provide Builders with a last opportunity to deal with Taylor Morrison in good faith as well as to perfect its right to pursue the remedies provided under Section 624.155, Florida Statutes. Builders can cure by acknowledging its duty to defend and reimbursing Taylor Morrison its reasonable defense costs incurred to date and working together with Taylor Morrison to resolve this claim.
Comments
User Id Date Added Comment
LHaine-Roberts@hinshawlaw.com 06-20-2025 Hinshaw & Culbertson LLP, on behalf of National Builders Insurance Company, responded to the Civil Remedy Notice in correspondence dated June 20, 2025 to attorney Lauren D. Kerr, at Cogburn Legal, denying it acted in bad faith as detailed in said correspondence.
LHaine-Roberts@hinshawlaw.com 05-22-2025 The Parties have agreed to a 30-day extension to respond to this Civil Remedy Notice. The carrier will, therefore, be responding on or before 6/22/25.
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