California insurance regulator seeks penalties from State Farm for violations in handling of 2025 Los Angeles wildfire claims

California's Insurance Commissioner Ricardo Lara announced an investigation found State Farm violated state law hundreds of times while handling claims from the 2025 Palisades and Eaton fires. The state is seeking millions of dollars in penalties after examining 220 random claims and finding nearly 400 violations, including underpayment and delayed processing. State Farm received more than 11,000 claims from the fires, representing roughly one-third of all claims filed.