LOS ANGELES – (INT) - State Farm Insurance is being called out for allegedly mishandling insurance claims filed by survivors of the 2025 Los Angeles wildfires. The California Department of Insurance is taking a major enforcement action against State Farm seeking millions of dollars in penalties. Insurance Commissioner Ricardo Lara documented a pattern of unlawful behavior in more than half of the claims reviewed. Of the 38,835 claims filed with all insurers, one-third involved State Farm. “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,” Insurance Commissioner Ricardo Lara said.

California’s top insurance regulator says the state is seeking millions of dollars in penalties from State Farm after an investigation found the insurance company violated state law while handling claims from the 2025 Los Angeles-area wildfires.

California is seeking millions of dollars in penalties from State Farm after an investigation found the insurance company was slow to investigate and underpaid claims from the 2025 Los Angeles-area wi