State Farm penalties and chaotic wildfire claims put the California Department of Insurance under glare as watchdogs tighten insurance rules in CA. CDI oversees insurers and consumer protections since 1868.
California regulators have found hundreds of violations in State Farm’s handling of wildfire claims tied to the 2025 Eaton and Palisades fires. The investigation reviewed 220 claims and identified 398 state-law violations in 114 cases. Authorities seek penalties and potential license actions as part of broader reforms to post-disaster claims processing.