California eyes penalties and license suspension for State Farm over LA fire claims

California’s Insurance Department says State Farm delayed, underpaid, and inserted red tape in handling Los Angeles fire insurance claims, finding violations in about half of 220 examined claims (out of 430 total). If upheld, penalties could reach up to $5,000 per violation (and $10,000 per willful violation), potentially totaling roughly $2 million to $4.3 million, with a hearing that could lead to a temporary suspension of the company’s California license. State Farm disputes the findings, while regulators seek to ensure homeowners maintain coverage after the fires.