US EditionCalifornia 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.
63 Articles
63 Articles
State Farm faces millions in fines for handling of LA wildfire claims
The California Department of Insurance is seeking millions of dollars in fines from State Farm for its handling of L.A. wildfire claims — the department's largest penalty pursued after a disaster this century.
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
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.
California seeks millions of dollars from State Farm for 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 law while handling claims from the 2025 Los Angeles-area wildfires.
California takes action against State Farm after survivors reported delays on Palisades, Eaton fire claims
The two fires led to the deaths of 31 people and destroyed more than 16,000 structures. Lara launched the investigation last June after survivors of the Palisades and Eaton fires said that the state's largest home insurer was delaying and…
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