Overview
- County counsel demanded detailed claims and business-practice documents from State Farm, with a response due Nov. 20.
- Investigators are examining practices including rotating adjusters, misrepresented coverage, additional living-expense reimbursements, smoke-damage handling, withheld estimates, and the use of AI in reviews.
- The action runs alongside the California Department of Insurance’s June market conduct exam and ongoing private lawsuits, with officials stressing faster, full payouts to survivors.
- State Farm said the probe could distract from recovery work but pledged cooperation, reporting more than 13,500 claims and nearly $5 billion paid, with roughly 200 claims staff still deployed.
- Potential outcomes include restitution, injunctive relief and civil penalties of up to $2,500 per day per violation, as survivor groups cite 400-plus complaints and survey data showing poorer customer experiences.