California seeks millions in penalties from State Farm over alleged claims violations after LA wildfires

State's top insurance regulator says insurance company violated law while handling claims from 2025 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 wildfires, regulators announced on Monday.

State Farm violated the law hundreds of times in a sampling of 220 cases, the state's insurance commissioner, Ricardo Lara, said. The maximum penalty amount allowed by law would be about $4m if State Farm is found to be willful" in violating state law. Regulators may also temporarily suspend the company's license, effectively prohibiting the state's largest home insurer from writing new policies for a year in California.