LA County Launches State Farm Probe Following Eaton, Palisades Fires
The probe targets alleged delays, underpayments, and denials in claims from 13,500 wildfire cases, with 70% of survivors reporting recovery delays, county officials said.
- On Nov. 13, Los Angeles County counsel launched a formal investigation into State Farm's handling of insurance claims filed by policyholders affected by the January 2025 Eaton and Palisades fires amid complaints of delays, denials and underpayments.
- Amid mounting complaints from survivors, the Eaton Fire Survivors Network documented over 400 firsthand accounts and said 70% of insured Los Angeles fire survivors report delays derailing recovery.
- The county's letter demands all records on January 2025 wildfire claims, adjuster policies and AI use from State Farm headquarters, Bloomington, Illinois, citing California's Unfair Competition Law with a Nov. 20 deadline.
- The Los Angeles County Office of County Counsel said it aims to change practices, while State Farm responded that the investigation is 'another distraction'; the California Department of Insurance launched an exam in June, and State Farm paid nearly $5 billion for wildfire claims.
- With State Farm's size and exposure in mind, officials warn exams can lead to practice changes, penalties, and hundreds of millions passed to policyholders after $7.6 billion losses from January 2025 fires.
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LA County launches investigation of State Farm over handling of wildfire claims
Amid widespread complaints of delays and underpayments, county attorneys are demanding State Farm to cease "any unlawful" practices.
California investigates State Farm over wildfire claims
Los Angeles County opens investigation into State Farm’s wildfire claims handling
Los Angeles County announced Wednesday that County Counsel has launched an investigation into State Farm's handling of insurance claims filed by policyholders affected by the January 2025 Eaton and Palisades fires. The investigation focuses on potential violations of California's Unfair Competition Law and follows growing complaints from residents about delays, underpayments and denials of legitimate […] The post Los Angeles County opens investi…
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