California Seeks ‘Historic’ Fine Against State Farm: Just $2 Million
The New York Times • • business
Key Points:
- California’s insurance regulator is seeking a record fine against State Farm for systematically mishandling claims related to last year’s Los Angeles wildfires.
- The investigation, a market conduct exam, was prompted by thousands of complaints alleging delays and denials that hindered policyholders’ rebuilding efforts.
- A review of 220 claims found 398 violations of state law across 114 claims, with many claims having multiple violations.
- State law allows fines of $5,000 per violation, or $10,000 if willful, potentially resulting in a $2 million penalty; however, the higher fine is rarely imposed due to difficulty proving willfulness.
