State senator demands California escalate war with State Farm by hitting it where it hurts most
New York Post • • business
Key Points:
- California State Senator Sasha Renée Pérez is urging officials to target State Farm's auto insurance sector, its most profitable area, amid allegations of hundreds of legal violations in handling wildfire survivor claims.
- The California Department of Insurance found that State Farm broke state law hundreds of times in a review of 220 cases, potentially facing fines up to $4 million and a one-year ban on writing new policies if violations are deemed willful.
- Pérez criticized the proposed fines as insufficient, emphasizing the real human impact on wildfire survivors struggling to recover and return home.
- State Farm denies wrongdoing, calling the investigation politically motivated and warning that suspending their operations could destabilize California’s homeowners insurance market.
- Pérez rejected claims that California’s insurance system is to blame, noting similar issues with State Farm in other states, and stressed the need for real solutions to assist fire survivors.