State Farm faces California penalties for wildfire claim handling; massive potential fines. Big insurer, Bloomington HQ.
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.