State Farm faces license suspension over alleged mishandling of LA wildfire claims

California is sending a major message to State Farm after accusing the insurance company of mishandling wildfire claims tied to the devastating January 2025 fires in Los Angeles County.

The Los Angeles Times reported on the state’s proposed enforcement actions, including suspending State Farm’s license to sell policies in the state for up to a year and imposing millions of dollars in penalties.

The Department of Insurance said its probe, starting last June, into the company’s handling of wildfire claims uncovered 398 alleged violations of state law across 220 sampled claims…

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