California fines State Farm over wildfire claims handling—big penalties could follow. CDI oversees insurance rules and consumer protections in CA.
California regulators have found hundreds of violations in State Farm’s handling of wildfire claims tied to the 2025 Eaton and Palisades fires. The market conduct exam reviewed 220 claims, identifying 398 violations in 114 cases. The department is seeking penalties and possible license actions as part of a sweeping review of the insurer’s practices.