California seeks millions in penalties from State Farm over alleged claims violations after LA wildfires
California is seeking millions in penalties from State Farm for alleged violations in handling insurance claims following the 2025 Los Angeles-area wildfires. The state's insurance commissioner, Ricardo Lara, claims State Farm committed hundreds of legal violations, including underpaying and delaying claims. Regulators may also suspend the company's license to write new policies in the state.
- ▪State Farm allegedly violated the law hundreds of times in a sample of 220 claims from the 2025 wildfires.
- ▪The maximum penalty could reach $4 million if State Farm is found to have willfully violated state law.
- ▪The department of insurance found roughly 400 violations, including delayed investigations, underpayments, and improper denial of hygienic testing for smoke toxins.
- ▪State Farm handled about one-third of all residential claims after the fires, affecting thousands of policyholders.
- ▪The company could face a one-year suspension of its ability to issue new policies in California.
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A home burns during the Eaton fire in the Altadena area of Los Angeles county, California, on 8 January 2025. Photograph: Josh Edelson/AFP/Getty ImagesView image in fullscreenA home burns during the Eaton fire in the Altadena area of Los Angeles county, California, on 8 January 2025. Photograph: Josh Edelson/AFP/Getty ImagesCalifornia wildfiresCalifornia seeks millions in penalties from State Farm over alleged claims violations after LA wildfiresState’s top insurance regulator says insurance company violated law while handling claims from 2025 wildfiresAssociated PressMon 4 May 2026 18.46 EDTSharePrefer the Guardian on GoogleCalifornia is seeking millions of dollars in penalties from State Farm after an investigation found the insurance company was slow to investigate and underpaid claims…
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