{"id":8276,"date":"2026-05-05T04:08:20","date_gmt":"2026-05-05T04:08:20","guid":{"rendered":"https:\/\/8657085.xyz\/?p=8276"},"modified":"2026-05-05T04:08:20","modified_gmt":"2026-05-05T04:08:20","slug":"state-farm-license-suspension-in-california-is-unlikely-despite-398-violations-in-wildfire-claims-probe","status":"publish","type":"post","link":"https:\/\/8657085.xyz\/?p=8276","title":{"rendered":"State Farm license suspension in California is unlikely despite 398 violations in wildfire claims probe"},"content":{"rendered":"<p> <div style=\"display: grid; grid-template-columns: 300px 160px; gap: 2px; width: 460px; background: #eee; padding: 2px;\">\r\n\r\n  <!-- \u6574\u884c\u5bbd\u5e7f\u544a -->\r\n  <div style=\"grid-column: 1\/-1; width: 460px; height: 250px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876674\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n  <div style=\"grid-column: 1\/-1; width: 460px; height: 90px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876676\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n\r\n  <!-- \u5de6\u4fa7\u7ad6\u6392 -->\r\n  <div style=\"height: 250px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876672\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n  <div style=\"height: 500px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876680\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n\r\n  <!-- \u53f3\u4fa7\u6469\u5929\u697c\uff08\u548c\u5de6\u4fa7\u5b8c\u5168\u5bf9\u9f50\uff09 -->\r\n  <div style=\"grid-row: 3\/5; height: 750px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876678\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n  \r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e6\" data-zoneid=\"5876682\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n<\/div><br \/>\n<\/p>\n<div>\n<p>Regulators want State Farm barred from writing new policies for a year for allegedly violating state law after the Los Angeles wildfires \u2014 but experts say current customers shouldn\u2019t panic.<\/p>\n<p>\u201cAuto insurance and home insurance contracts are one year contracts, and they commenced at different times for different people. Suspension of the license would not vitiate those contracts,\u201d Dave Jones, the former California Insurance Commissioner, told The California Post.<\/p>\n<p>\u201cYou\u2019d still have your existing contract, it would mean, though, that it wouldn\u2019t be able to get renewed,\u201d Jones added.\u00a0<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Regulators want State Farm barred from writing new policies for a year for allegedly violating state law after the Los Angeles wildfires \u2014 but experts say current customers shouldn\u2019t panic. <span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>\u201cAuto insurance and home insurance contracts are one year contracts, and they commenced at different times for different people. Suspension of the license would not vitiate those contracts,\u201d Dave Jones, the former California Insurance Commissioner, told The California Post. <span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>State regulators are pushing a multimillion-dollar fine and possible license suspension for State Farm after a California Department of Insurance probe found it delayed claims, lowballed payouts, and shuffled adjusters, sowing confusion for policyholders.<\/p>\n<aside class=\"single__inline-module aligncenter wp-block-nypost-editor-primary-tag\">\n<\/aside>\n<p>The probe, released in part on Monday, found a staggering 398 violations of state law in 114 of the 220 sample claims that were looked into.\u00a0<\/p>\n<p>\u201cWhat I hope is that State Farm recognizes that they have gone too far and that the Department of Insurance recognizes that its responsibility is to Californians not to State Farm,\u201d Douglas Heller, Consumer Federation of America\u2019s Director of Insurance, told the Post.\u00a0<\/p>\n<div class=\"single__inline-module inline-module inline-module--newsletter aligncenter inline-module--nypostbusinessunit aligncenter wp-block-nypost-editor-newsletter\" data-source-unit=\"Inline Newsletter Module Cali - Morning Report\">\n<div class=\"inline-module__inner\">\n<div class=\"inline-module__title-wrapper\">\n<div class=\"inline-module__unsubmitted-title-wrapper\">\n<h3 class=\"inline-module__title headline headline--combo-sm-md\">\n\t\t\t\t\t\t\tSign up for the California Morning Report newsletter\t\t\t\t\t\t<\/h3>\n<p class=\"inline-module__cta\">\n\t\t\t\t\t\t\tCalifornia&#8217;s top news, sports and entertainment delivered to your inbox every day.\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<p><h3 class=\"inline-module__title headline headline--combo-sm-md\">\n\t\t\t\t\t\tThanks for signing up!\t\t\t\t\t<\/h3>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<p>Heller doesn\u2019t believe the insurance giant is likely to have its license suspended, but hopes it\u2019s the catalyst that forces State Farm to reform its practices.\u00a0<\/p>\n<p>\u201cI don\u2019t think it\u2019s a huge chance because hopefully State Farm will will get serious and respond to this action in a productive way, meaning changing their practices, getting money back into people\u2019s hands and speeding up their processing of claims,\u201d Heller said.\u00a0<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>State regulators are pushing a multimillion-dollar fine and possible license suspension for State Farm after a California Department of Insurance probe found it delayed claims, lowballed payouts, and shuffled adjusters, sowing confusion for policyholders. <span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>A sentiment echoed by Jones, who said there\u2019s \u201cabout zero probability\u201d the insurer loses its license.\u00a0<\/p>\n<p>\u201cThey are substantial writer of home insurance in a market that, you know, already only has about 110 or so insurance companies writing,\u201d Jones said. \u201cI think it\u2019s unlikely that the commissioner, even if a recommendation comes up from an administrative law judge to suspend, I think it\u2019s very unlikely we\u2019ll do so.\u201d\u00a0<\/p>\n<p>However, in the slim chance it does happen, Jones noted that people could have difficulty finding another insurer.\u00a0<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<h2 class=\"wp-block-heading\"><strong>Download The California Post App, follow us on social, and subscribe to our newsletters <\/strong><\/h2>\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>California Post News<\/strong>: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn<br \/><strong>California Post Sports<\/strong> Facebook, Instagram, TikTok, YouTube, X<br \/><strong>California Post  <\/strong>Opinion <br \/><strong>California Post Newsletters<\/strong>: Sign up here!<br \/><strong>California Post App<\/strong>: Download here!<br \/><strong>Home delivery<\/strong>: Sign up here!<br \/><strong>Page Six Hollywood<\/strong>: Sign up here!<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<\/div>\n<p>\u201cIt\u2019s not that people will face higher rates, it\u2019s that they will they\u2019ll need to go get insurance from another insurance company, and those companies are not required to write insurance,\u201d Jones said, underscoring that other carriers might not want the additional exposure in a state where wildfire risks have increased.\u00a0<\/p>\n<p>\u201cSome number of them will pick up policyholders, but some may conclude they can only do so much because they don\u2019t they don\u2019t want to expand their footprint too much in California,\u201d he said.\u00a0<\/p>\n<p>State Farm pushed back on the state\u2019s investigation, claiming it is a \u201cpolitically motivated attack that could ultimately cripple California\u2019s homeowners insurance market.\u201d\u00a0<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>State Farm pushed back on the state\u2019s investigation, claiming it is a \u201cpolitically motivated attack that could ultimately cripple California\u2019s homeowners insurance market.\u201d\u00a0 <span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cWe 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,\u201d \u00a0the insurance giant, which insures over a million in California, said in a statement.\u00a0<\/p>\n<p>Amy Bach, who co-founded United Policyholders that advocates for consumers of all types of insurance, told The Post State Farm is needed in California as \u201cit\u2019s not clear that other insurers other reputable insurers can fill in the gaps that they would leave,\u201d however they need to make serious changes.\u00a0<\/p>\n<p>\u201cWe want State Farm to straighten up and fly right and get back to their old reputation of being a good neighbor, but they have a mess to clean up here and they\u2019re gonna have to clean it up,\u201d she said.\u00a0<\/p>\n<p>If an administrative law judge finds the state\u2019s findings have merit, penalties could range between $5,000 per violation to $10,000 if willful.\u00a0<\/p>\n<p>But Heller points out it could take months before a decision is actually reached.\u00a0<\/p>\n<p>\u201cThis will play out for awhile because even if if they go through this process, which could be several several months or longer in hearings, State Farm has all sorts of rights that it that it will likely want to exhaust,\u201d Heller said.\u00a0<\/p>\n<\/p><\/div>\n<p><script async defer src=\"https:\/\/platform.instagram.com\/en_US\/embeds.js\"><\/script><br \/>\n<br \/><!-- 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violating&#8230;<\/p>\n","protected":false},"author":1,"featured_media":8277,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[349],"tags":[581,706,3587,8034,927,159,8796,8797,8798],"class_list":["post-8276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-california","tag-claims","tag-farm","tag-license","tag-probe","tag-state","tag-suspension","tag-violations","tag-wildfire"],"featured_image_urls":{"full":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540.jpg",1200,799,false],"thumbnail":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540-150x150.jpg",150,150,true],"medium":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540-300x200.jpg",300,200,true],"medium_large":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540-768x511.jpg",640,426,true],"large":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540-1024x682.jpg",640,426,true],"1536x1536":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540.jpg",1200,799,false],"2048x2048":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540.jpg",1200,799,false],"covernews-slider-full":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540-1115x715.jpg",1115,715,true],"covernews-slider-center":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540-800x500.jpg",800,500,true],"covernews-featured":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540-1024x682.jpg",1024,682,true],"covernews-medium":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540-540x340.jpg",540,340,true],"covernews-medium-square":["https:\/\/8657085.xyz\/wp-content\/uploads\/2026\/05\/127017540-400x250.jpg",400,250,true]},"author_info":{"display_name":"admin","author_link":"https:\/\/8657085.xyz\/?author=1"},"category_info":"<a 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