Filing Number: 829389
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| Filing Accepted: 6/27/2025 |
| Last/Business Name
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PALM BAY ESTATES CONDOMINIUM ASSOCIATION, INC.
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First Name |
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| Street Address
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26773 HICKORY BOULEVARD UNITS 1-8 |
| City, State Zip
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BONITA SPRINGS,
FL
34134
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| Email Address
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SM@HMGLEGAL.COM |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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PALM BAY ESTATES CONDOMINIUM ASSOCIATION, INC. |
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First Name |
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SCOTT |
| Policy # * |
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FIC1-000206231 |
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Claim #* |
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05000001427 |
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Attorney is Applicable
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| Last Name* |
MILLARD
First Name *
SCOTT
Initial
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| Street Address* |
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SUITE 300, 385 W, FAIRBANKS |
| City, State Zip* |
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WINTER PARK
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FLORIDA
32789
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| Email Address * |
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SGM@HMGLEGAL.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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FRONTLINE INSURANCE UNLIMITED 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 10074 |
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| Name of individual responsible for violation (if any):*
AARON SCOTT, MICHAEL KRANZLER, DOUGLAS MAESTAS
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| Type of Insurance
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Commercial Property & Casualty
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| Reason for Notice
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Claim Denial
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Claim Delay
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Unsatisfactory Settlement Offer
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Unfair Trade Practice
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Other
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intentional delay tactics in litigation
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Other
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Failure to implement proper adjusting practices
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Other
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Failure to timely respond to claim correspondence
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Other
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using Michael Kranzler to make misleading statements regarding the policy and Florida law
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Statutory provision(s) which the insurer allegedly violated.
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| 624.155(1)(b)(1) |
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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.
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| 624.155(1)(b)(2) |
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Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made.
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| 624.155(1)(b)(3) |
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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.
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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)(c) |
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Failing to acknowledge and act promptly upon communications with respect to claims.
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| 626.9541(1)(i)(3)(d) |
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Denying claims without conducting reasonable investigations based upon available information.
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| 626.9541(1)(i)(3)(f) |
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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.
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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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| 626.9541(1)(i)(3)(h) |
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Failing to clearly explain the nature of the requested information and the reasons why such information is necessary.
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| 626.9541(1)(i)(3)(j) |
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Altering or amending an insurance adjuster’s report without:
(I) Providing a detailed explanation as to why any change that has the effect of reducing the estimate of the loss was made; and
(II) Including on the report or as an addendum to the report a detailed list of all changes made to the report and the identity of the person who ordered each change; or
(III) Retaining all versions of the report, and including within each such version, for each change made within such version of the report, the identity of each person who made or ordered such change;
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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.
Coverage A
Additional Coverage: Debris Removal, Outdoor property
Loss Conditions:
Appraisal, Duties in the Event of Loss or Damage (a), (b)
Loss Payment (a), (b), (c), (g)
Valuation
Florida Changes Form
Loss Payment (1), (2), (3)
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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.
The named insured suffered a loss to the property due to hurricane force winds as a result of Hurricane Ian.
Insured timely reported the loss, advised of damages to the structure, roofing system, roofing assembly, exterior porches, balconies, siding, A/C systems, and then provided full and unlimited access to the Insurer's adjusters, consultants, and engineers. After receiving the Insurer's determination of the amount of loss, Insured provided insurer with its assessment of the amount of loss for the same reported damages that the Insurer was noticed with the original claim.
Insurer thereafter requested an additional inspection and demanded that the Insured submit a Sworn Proof of Loss. Insured timely provided access to the property and submitted the sworn proof of loss. Once the Insurer completed these requests, the carrier stopped responding to Insurer's claim correspondence, failed to identify any additional items it required to complete its investigation, and failed to comply with both the Policy and statutory requirement that the Insurer adjust and pay the supplemental claim within 90 days of the reported supplemental claim. Moreover, Insurer failed to respond to Insureds' lawyer's Letter of Representation and the request for information. This violates the carrier's duty to timely respond to claim correspondence and set the tone for what was to follow. Due the nonresponsive conduct of the carrier, the Insured demanded appraisal and requested that the carrier agree to engage in appraisal and appoint its appraiser. Insurer failed to acknowledge or respond to the demand and the communication. This established a pattern and practice of being nonresponsive and established breach of the insurance agreement. As a method of last resort, the Insureds served Insurer with a Notice of Intent to Litigate.
Once received, the Insurer implemented a well recognized strategy to delay the outcome of the claim. Insurer retained counsel, demanded mediation - that must be completed within 90 days - and then made a demand for EUOs and conditioned its compliance with its obligations under Section 627.70152 on it taking EUOs before mediation. The issue, by responding to the Notice of Intent to Litigate by demanding mediation, Insurer could not simultaneously assert that it was still investigating the loss. First, the time to do so set by the Policy and Statute had elapsed. Second, Insurer failed to respond to the Notice by asserting it had not completed its investigation, and third an EUO is not a statutorily listed response to a Notice of Intent to Litigate. In other words, the statute does not afford an Insurer with the option of conditioning its compliance with law on the performance of a condition that is not listed in the statute.
Secondarily, its attorney Michael Kranzler failed to either properly invoke the EUO provision because he requested an EUO for a claim number and address that neither involved the insured's claim, nor involved the insured address. Second, he failed to list areas of inquiry for the designated representative of the association. Third, by failing to do so and requesting multiple EUOs it was clear that he was seeking an EUO for a claim and insureds that were different and apart from the named insured. Moreover, by engaging in this tactic, Michael Kranzler and the Insurer conspired to create an impossibility, mislead its insureds, and violate the clear requirements of the Statute.
On information and belief, Insurer and Chartwell have engaged in a conspiracy to employ this improper and dilatory litigation strategy, or those similar in effect to this, in broad scale to delay and improperly influence the proper outcomes of claims so that the Insurer can increase profits, delay claims, increase pressure on insureds to take lower payouts, and place profits above Insurer's contractual, legal, and statutory duty to adjust claims in good faith.
To cure this CRN the insurer shall complete it investigation by properly invoking the provisions of the Policy and complete mediation within the statutory cure period, or alternatively agree to engage in the appraisal process that was invoked by the Insureds prior to serving the Notice of Intent to Litigate. Scott G. Millard is and has been the designated representative of the Insurer for all relevant times and his work email address stated herein is and always has been the email address for the association for all times relevant to the Insured's insurance claim and for purposes of communications relevant to this CRN.
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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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