Insurance Commissioner Investigates State Farm's Wildfire Claims Handling
Investigation into 220 claims revealed 398 violations, leading to a market conduct exam in June 2025.
Survivors of Palisades and Eaton fires complained about State Farm's handling of over 11,000 claims.
State Farm failed to conduct a thorough investigation, denied smoke damage claims, and didn't perform hygienic testing.
The 2025 fires destroyed 16,000 structures and killed 31 people.
Penalties could include fines or suspension of the insurer's certificate for up to a year.
State Farm made five commitments to policyholders, but the state is also suing FAIR Plan for similar issues.
3 weeks ago