Senators call for investigation into handling of State Farm complaints - Los Angeles Times

Los Angeles Times

by Paige St. John

February 20, 2026

AI-Generated Deep Dive Summary

Two California senators have called for an investigation into how the state insurance department has handled complaints from Los Angeles wildfire victims struggling to receive payouts from State Farm. The request comes after a Los Angeles Times report highlighted widespread concerns over delayed and denied claims, as well as the disciplinary action taken against a state compliance officer who alleged violations by State Farm. This officer was penalized after a State Farm executive complained about her criticisms of the insurer. Senators Ben Allen (D-Pacific Palisades) and Sasha Renée Pérez (D-Alhambra) have raised concerns about the lack of transparency and accountability in how these issues are being addressed, emphasizing the need for stronger consumer protections. The senators’ request follows a previous market conduct investigation launched in June into State Farm’s claims practices. Pérez has expressed frustration over the treatment of policyholder complaints and the need for clearer explanations regarding disciplinary actions taken against department staff who challenge insurers. The inquiry could take various forms, including an informational hearing or a formal Senate investigation with subpoena powers. Senate Insurance Committee Chair Steve Padilla (D-San Diego) is considering legislative tools to address these concerns and has yet to make a decision. Consumer advocates have welcomed the proposed investigation, calling it a critical step toward enforcing California’s strong consumer protection laws. Joy Chen of the Eaton Fire Survivors Network noted that while California has robust protections in place, they must be enforced effectively. The senators acknowledge the hard work of the insurance

Verticals

newscalifornia

Originally published on Los Angeles Times on 2/20/2026