Overview
- Los Angeles County’s consumer protection division launched a civil probe into State Farm’s handling of January Eaton and Palisades wildfire claims under the Unfair Competition Law, which allows restitution, injunctive relief and penalties up to $2,500 per day per violation.
- The county’s letter orders the insurer to halt any unlawful practices and demands extensive records, including customer communications, policyholder submissions, adjuster policies and the company’s use of artificial intelligence.
- Officials set a Nov. 20 reply date, citing urgency as displacement coverage and temporary housing support for fire survivors run out.
- The county action follows months of complaints and an October survey reporting higher rates of denials, lowball estimates and poor communication for State Farm customers compared with other insurers.
- The probe adds pressure to a separate state market‑conduct examination opened in June; State Farm says it has received more than 13,500 claims and paid nearly $5 billion, calling the county effort a distraction while asserting it pays what customers are owed.