State Farm vs. State of California
By Zain Khan / Yahoo Finances New York Post / May 4, 202
State Farm is in crisis mode in California as officials look to slap it with massive fines and suspend its license over the handling of the deadly 2025 Palisades Fire.
The California Department of Insurance issued a damning verdict on the state’s largest insurer after an investigation into its actions towards customers following the inferno.
The probe, released in part on Monday, found a staggering 398 violations of state law in 114 of the 220 sample claims it looked into.
Among the key findings was claims were not investigated or resolved within required timelines, payouts were unreasonably low and policyholders were frequently reassigned to different adjusters — creating confusion some described as “adjuster roulette.”
Smoke damage claims, which made up nearly half of all complaints, were also mishandled, with delays, denials and missing explanations cited by investigators.
Insurance Commissioner Ricardo Lara said Monday: “Wildfire survivors came to us for help, and we followed the facts.

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