California Insurance Regulators Say State Farm Mishandled Wildfire Claims

The California Department of Insurance announced on May 4 it filed an enforcement action against State Farm, alleging the company significantly mishandled claims from survivors of the 2025 Los Angeles wildfires. “Wildfire survivors came to us for help, and we followed the facts,” Insurance Department Commissioner Ricardo Lara said. “Our investigation found that State Farm delayed, underpaid, and buried policyholders in red tape at the worst moment of their lives. That is unacceptable, and we are taking decisive action to hold them accountable.” The Palisades Fire and the nearby Eaton Fire, which ignited in Altadena, California, on Jan. 7, 2025, claimed around 30 lives and destroyed more than 12,000 structures....