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California says State Farm violated the law in handling of insurance claims after 2025 LA wildfires
Regulators say an investigation found 398 violations in 220 claims, and the state is seeking millions in penalties and a possible one-year license suspension.
- On Monday, Insurance Commissioner Ricardo Lara filed an administrative action against State Farm General after an investigation into 220 sample claims revealed 398 state law violations related to the 2025 Los Angeles-area wildfires.
- The Department launched this market conduct exam in June 2025 following complaints from survivors of the Palisades and Eaton fires about State Farm's handling of more than 11,000 claims.
- Investigators found the company failed to pursue a "thorough, fair and objective investigation," including denying smoke damage claims and hygienic toxin testing, as the January 2025 fires destroyed more than 16,000 structures and killed 31 people.
- Penalties could include millions of dollars in fines or suspension of the insurer's certificate of authority for up to a year, pending review by a state administrative law judge who will recommend final penalties to Lara.
- State Farm released five commitments to policyholders on April 22, though the state is simultaneously pursuing remedies against the FAIR Plan for similar smoke damage claim denials by fire survivors.
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California Moves to Penalize State Farm Over Handling of Wildfire Claims Amid Ongoing Insurance Crisis
California regulators are pursuing millions of dollars in penalties against State Farm following an investigation that found widespread issues in the company’s handling of claims ... The post California Moves to Penalize State Farm Over Handling of Wildfire Claims Amid Ongoing Insurance Crisis first appeared on [your]NEWS.
California could suspend State Farm’s license | KNX News 1070 AM
California regulators want to suspend State Farm’s license for up to a year and levy the largest penalty ever against a state insurer, alleging it mishandled wildfire claims in Los Angeles County. | KNX News 1070 AM
Alleged mishandling of LA wildfire claims by State Farm sparks legal action
LOS ANGELES (KESQ) - An investigation by the California Department of Insurance found that claims filed with State Farm by survivors of the 2025 Eaton and Palisades wildfires were "delayed, underpaid, and buried'' in red tape, resulting in legal action by the office, it was announced Monday. The department's enforcement action seeks millions of dollars
California says state’s largest home insurer violated the law in handling of claims after 2025 LA wildfires
California’s top insurance regulator says the state is seeking millions of dollars in penalties from State Farm after an investigation found the insurance company violated state laws while handling claims from the 2025 Los Angeles-area wildfires.
California moves to suspend State Farm’s license over wildfire claims | Honolulu Star-Advertiser
California regulators are seeking to suspend State Farm’s license for up to a year and levy millions in penalties against the insurer, alleging it mishandled January 2025 wildfire claims in Los Angeles County.
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