"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 results of the exam were released Monday in support of the legal action. It found that the company failed in numerous cases to pursue a thorough, fair and objective investigation into claims."
"Other alleged violations included a failure to give timely responses to claims, provide a factual or legal basis for claim denials and or give victims a primary point of contact after assigning three or more adjusters."
California regulators are pursuing a one-year suspension of State Farm's license and the largest penalty against a state insurer due to mishandling wildfire claims from January 2025. An investigation revealed 398 violations of state law in 220 sample claims, with findings indicating delays, underpayments, and excessive bureaucracy faced by policyholders. The insurer has managed approximately 11,300 claims related to the fires that caused significant destruction and loss of life. The investigation was prompted by complaints from fire victims.
Read at Los Angeles Times
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