California launches investigation into State Farm’s handling of claims following LA fires

California Insurance coverage Commissioner Ricardo Lara introduced that his workplace will examine State Farm’s dealing with of wildfire claims following the Los Angeles fires. 

Lara made the announcement in an unique interview on Thursday with CBS News California Investigative Reporter Julie Watts, following a collection of CBS News California investigations into California’s insurance crisis. 

FOLLOW OUR CONTINUING COVERAGE: CBS News California Investigates California Insurance Crisis

Lara introduced Thursday that the California Division of Insurance coverage has initiated a proper Market Conduct Examination of State Farm.

Of specific concern is how State Farm and other insurers have been dealing with smoke injury claims.

“Some troubling patterns that my employees will examine embrace the frequent reassignment of a number of adjusters with little continuity in communication, inconsistent administration of comparable claims, and insufficient record-keeping or information-sharing amongst claims groups,” Lara mentioned in a press release.

No actual variety of complaints filed in opposition to State Farm was revealed, however Lara’s workplace said they’ve acquired normal allegations from wildfire survivor teams.

In a press release, State Farm says they’re cooperating with the state and can adjust to the investigation. 

“A good assessment will discover that 1000’s of State Farm prospects are being helped by our groups on the bottom in Los Angeles County and are very happy. Our efforts will stay on serving all our prospects and assembly our obligations below the contract whereas offering the required data to the [California Department of Insurance],” State Farm said. 

Lara famous that California’s Division of Insurance coverage has already recovered round $40 million for Eaton and Palisades fire survivors following inquiries into shopper complaints.

“Californians should return to properties which are really protected, not compelled to deal with smoke, soot, and ash on their very own,” Lara mentioned in a press release.

State Farm and different insurance coverage firms have paid out practically $17 billion to policyholders who survived the Eaton and Palisades fires, in line with Lara’s numbers. State Farm says, as of June 10, they’ve fielded greater than 12,800 claims associated to the LA fires, paying out over $3.96 billion to Californian policyholders.  

“Our claims power is the most important within the business and we have now introduced the complete scale and power of our disaster response groups to assist our Southern California prospects get better. Our declare handlers stay on the bottom aiding prospects,” State Farm mentioned in a press release. 

The investigation introduced Thursday additionally comes a month after the insurance coverage division approved a 17% increase in home insurance premiums for State Farm prospects following the LA fires. 

Lara’s workplace famous {that a} Market Conduct Examination often takes a number of months to finish.