Citizens Property Insurance withdraws lawsuit in exchange for $1 million under terms of settlement agreement

A trio of Florida firms accused of working together to artificially inflate the severity of and charges to correct insured damages, agreed to shell out $1 million to Citizens Assets Coverage Enterprise.

In return, Citizens agreed to withdraw a lawsuit submitted in 2020 in opposition to the Strems Law Business, Contender Statements Consultants, and All Insurance policies Restoration Services. 4 people, Guillermo Saavedra of Contender Claims Consultants, Cesar Guerrero and Derek Parsons of All Insurance policy Restoration Companies, and Scot Strems, have been also named defendants in the lawsuit. 

There has been no concession from the defendants that fraud happened. The Florida Supreme Courtroom suspended Strems from working towards for two many years. The organization was restructured and is now doing company as The Residence Advocates, P.A.

Citizens, meanwhile, has not backed off its contention that the corporations have been bilking the condition-supported insurance provider of last resort given that 2014 and that the fraud is a driving factor driving insurance plan premium improves.

Main Money Officer Jimmy Patronis declared the settlement agreement at a news convention in Tampa, joined by Citizens House Insurance policy Organization President CEO and Executive Director Barry Gilway.

Patronis praised the work of a special investigative unit Citizens launched soon after detecting what has been explained as a suspicious pattern in between the regulation business, the general public statements adjuster, and the drinking water mitigation business.

The Citizens SIU combed as a result of 5,000 claims, ultimately sending much more than 400 situations to the Division of Investigative and Forensic Solutions in the point out Department of Economical Providers. The division subsequently launched its personal felony investigation.

“Had this fraud been left unchecked, it could have price policyholders $16 million a calendar year,” Patronis mentioned, noting that DFS, the company he heads, will continue to function to ferret out coverage fraud.

“As criminal investigations continue on,” he stated, “this motion sends a loud sign that if you are ripping off consumers, we’re going to find you and keep you accountable.”

The settlement agreement was executed in March but not announced until eventually Might 12, days right before legislators will return to Tallahassee for a Specific Session on residence insurance coverage.

Gov. Ron DeSantis issued a proclamation in late April, location the Session dates from May possibly 23 to 27. The declaration notes the field has seasoned two straight yrs of at the very least $1 billion in underwriting losses, and several companies have absent bankrupt or refused to renew hundreds of countless numbers of insurance policies. That has led to huge improves in premiums, which have hit house owners concurrently as rampant inflation in pinching pocketbooks.

The information states the exclusive goal of the Session will be to consider costs about property insurance, reinsurance, adjustments to the Florida making code, the Business office of Insurance plan Regulation, civil remedies, and appropriations.

Citizens spokesperson Michael Peltier mentioned Citizens thought information of the agreement would properly “dovetail” with a news convention on insurance policy fraud.

“And the fact that the exclusive session is so shut, we thought it would get superior play,” Peltier stated. 

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