California’slargest home insurancecompany tore into state regulators Monday as it faces potential multi-million dollar fines and a suspension of its license.
“Wildfire survivors deserve real solutions — not a distorted picture of State Farm’s response. We strongly disagree with the Department’s characterization,” State Farm General Insurance Company said in a statement.
The lengthy, strongly worded response came within hours ofthe state of California issuing a damning verdictfollowing an investigation into the company’s handling of customer claims after the 2025 wildfires.
“The threat to suspend State Farm General’s ability to serve customers over primarily administrative and procedural errors is a reckless, politically motivated attack that could ultimately cripple California’s homeowners insurance market,” the insurance giant, which insures over a million in California, said.
“We reject any suggestion that State Farm engaged in a general practice of mishandling or intentionally underpaying wildfire claims, and we will respond through the process,” the statement added.
The probe, released in part on Monday, found a staggering 398 violations of state law in 114 of the 220 sample claims reviewed.
Among the key findings: 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.”
The insurance agency maintains the investigation does not accurately reflect the full situation.
“Using a thin sample of claims to justify sweeping allegations turns regulatory oversight into a political weapon, creating headlines instead of delivering facts and real consumer protection,” the company said.
State Farm said the review covered 220 files and that most issues were administrative or procedural — such as timing of notices, documentation, or payee details — rather than failures to pay covered claims.
Source: California Post – Breaking California News, Photos & Videos
