California's Department of Insurance has initiated an investigation into State Farm's handling of claims from the Eaton and Palisades fire survivors. Commissioner Ricardo Lara announced a market conduct examination triggered by consumer complaints about delayed payments and poor claims management. The inquiry will focus on the reassignment of multiple adjusters and inadequate communication regarding claims, aimed at determining if reforms are needed in the insurance sector. The investigation is compounded by the broader context of natural disasters impacting insurance markets.
This examination will assess whether State Farm has complied with California's consumer protection and claims handling laws and will help determine if further reforms are needed.
The strongest evidence we can present is the voice of consumers themselves. I urge any wildfire survivor facing delayed payments...to file a formal complaint with my department.
Patterns that will be investigated include the frequent reassignment of multiple adjusters...inadequate record keeping or information sharing among claims teams.
A market conduct examination will provide the clarity we urgently need.
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