LuPardus Consumer Complaint to Kansas Insurance Department_04-17-2023
CONSUMER COMPLAINT MADE TO THE KANSAS INSURANCE DEPARTMENT
DATE: Apr 17, 2023
KANSAS INSURANCE DEPARTMENT
℅ JUSTIN MCFARLAND, GEN. COUNSEL
℅ Charles Thomas II
℅ TONI GARRARD, LEGAL ASST.
1300 SW ARROWHEAD ROAD
TOPEKA, KS 66604
KLENDA AUSTERMAN LAW
℅ CHRIS MCELGUNN, ESQ.
301 N MAIN #1600
WICHITA, KS 66212
FOR IMMEDIATE PUBLIC RELEASE: 04-17-2023 at 12:13 M CST
COMPLAINT MADE BY:
Name: Lonnie LuPardus
Address: 829 Creekside Drive Gardner, KS 66030 (County of Johnson)
Phone: 913-912-2255
Email: LUPARDUSVSHOMESITE@GMAIL.COM
Preferred mode of contact: Mail/Email/Phone (anytime)
COMPLAINT AGAINST:
WHO IS THE COMPLAINT AGAINST: Homesite Insurance / American Family Insurance
Name of Insurance Agency: Progressive Home by Homesite
Name of Adjuster: Stacey McLaughlin - stacey.mvlaughlin@afics.com
Name of Insured: Lonnie LuPardus
Policy Number: 38838914
Policy Period: 4/26/2022 - 4/26/2023
Date/Location of Loss: 12/20/2022
Claim No: 01-005-577940
Amount Disputed: $100,000.00 + (breached Duty to Defend)
Type of Insurance: Renters Policy w/ endorsements.
Reason for Complaint: Claimed Denied and Breach of Duty to Defend
Narrative:
On December 20th, 2022 LuPardus learned that a civil case had been filed against him in the District Court of Johnson County Kansas by the Klenda Austerman Law Firm in Wichita KS (Case 22CV6473), who was representing insurance company Homesite/American Family Insurance in their lawsuit they filed against him, their insured. [Ex 1] In their lawsuit, they sought and obtained a temporary restraining order issued by Judge Mason ex parte claiming LuPardus had "engaged in a persistent pattern of threatening, harassing and abusive behavior towards representatives of Homesite and AFICS in an effort to obtain coverage for his claims." [Ex. 1 (#27)]. Homesite continued their petition claiming "LuPardus' repeated behavior has caused and continues to cause great emotional distress [bodily harm] to reveal Homesite and AFICS representatives [the occurrence], and that Homesite "will continue to suffer immediate and irreparable harm in the form of loss of staff, its business relations with its other customers and the resulting loss of present and future revenue [property damage/loss], with no adequate remedy at law. Homesite also stated "Homesite and AFICS's probably damages would also likely exceed Lupardus' ability to satisfy a judgment against him [trigger for coverage]."
LuPardus filed a claim under his policy as he is covered and owed a duty to defend through his Insurer [Ex. 2], which they have wrongfully denied [Ex. 3]. There is a duty to defend if there is a “potential” for coverage. Spivey v. Safeco Ins. Co., 254 Kan. 237, 246, 865 P.2d 182, 188 (1993). The insurer’s duty to defend is determined not only by the specific claims made by the claimant, but also any facts that the insurer knew or “could have ascertained from a reasonable investigation.” Miller v. Westport Ins. Corp., 288 Kan. 27, 34, 200 P.3d 419 (2009).
The Kansas legislature defines unfair methods of competition and unfair or deceptive acts or practices in the business of insurance in K.S.A. § 40-2404. The act protects against misrepresentations and false advertising in insurance policies, defamation, false advertising generally, boycott, coercion and intimidation, false statements and entries, unfair discrimination, rebates, unfair claim settlement practices, failure to maintain complaint handling procedures, misrepresentation in insurance applications and disclosure of nonpublic personal information.
If the insurance commissioner determines that the insurer has engaged in any of the above practices, the insurer will be served with a statement of charges and a public hearing will be held. § 40-2406. If unfair or deceptive practices are found, the commissioner has the discretion to order the cessation of the action and the monetary penalty of not more than $1,000 for each violation, not to exceed $10,000 in the aggregate. §40-2407(a)(1). However, if the person knew, or should have known that the actions were in violation of the act, the penalty shall not be more than $5,000 for each violation, not to exceed $50,000 in the aggregate in any six-month period. Id.
Desired Outcome
Acknowledge violations of Kansas Law by Homesite Insurance and American Family Insurance.
Assess fines and penalties to Homesite Insurance and American Family Insurance for violations.
Acknowledge LuPardus’ complaint and submit a formal letter documenting the investigation and result findings that will be presented in the District Court of Johnson County Kansas.
Authorization
The Insurance Commissioner is authorized to send a copy of this complaint and any follow-up documents to any insurance company or agent/agency in order to investigate my concerns. I authorize the release of all relevant information to the Insurance Commissioner’s office for its review of this matter. I understand the Insurance Commissioner’s office cannot act as my attorney, cannot file a private action on my behalf, and cannot provide legal advice, I further understand and agree that the contents herein may be forwarded to other appropriate state or federal agencies, as well as become accessible to others under the Kansas Open Records Act. Finally, I declare and verify under penalty of perjury and the laws of Kansas that all of the above information is true and correct to the best of my knowledge.
SIGNATURE:
/s/ Lonnie LuPardus, Insured
(signed on April 17th, 2023 at 12:21 PM CST)
829 Creekside Drive Gardner KS 66030
(913) 912 - 2255
Exhibits
Public Shared Folder (Viewable): LuPardus Complaint Submitted to Kansas Insurance Department on 04-17-2023 Exhibits
Website Viewing:
Consumer Complaint to Kansas Insurance Department - 04-17-2023
Ex. 1 - Duty to Defend Complaint to KID_04-17-202…
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