Senators call for investigation into insurance department over handling of L.A. wildfire claims

"Two California senators have asked for an investigation into the state insurance department's handling of complaints filed by Los Angeles wildfire victims struggling to collect payouts from State Farm. The calls follow a Los Angeles Times report Thursday that revealed a range of complaints among more than a dozen fire victims over how the state insurance department has handled their claims since the January wildfires."

"The Times also reported that a state compliance officer who cited State Farm for numerous potential violations was punished with a 10% pay cut after a State Farm executive complained her criticisms of the insurer were "accusatory." The inquiry is sought by lawmakers from two fire zones: Sens. Ben Allen (D-Pacific Palisades) and Sasha Renée Pérez (D-Alhambra). "These are pretty shocking allegations," Allen said. "We think we need to do something with this information. What form exactly it will take has yet to be determined.""

Two California senators have sought an investigation into the state insurance department's handling of complaints from Los Angeles wildfire victims who say they are struggling to collect payouts from State Farm. More than a dozen policyholders reported problems with claims dating to January wildfires, and a state compliance officer who cited State Farm for potential violations received a 10% pay cut after a State Farm executive called her criticisms 'accusatory.' The request was made verbally on the Senate floor and referred to Senate Insurance Committee Chair Steve Padilla, who may hold an information hearing or a formal investigation with subpoena power. Lawmakers continue to press questions about a June market-conduct probe and the treatment of policyholder complaints.

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