Fire survivors group seeks to join state case against State Farm

A group representing January 2025 wildfire victims announced Thursday it is petitioning to join a state enforcement action against State Farm over the insurer's handling of claims. The Every Fire Survivors Network said it wants the case to include a systematic review of all claims and penalties scaled to the size of the alleged harm.

The group also seeks to reopen cases where it says claimants were underpaid.

Background on state action The California Department of Insurance filed the administrative action in May after a market conduct exam of 220 sample claims found 398 alleged violations of state law. Regulators are seeking a cease-and-desist order and have threatened to suspend the company's license to write policies in the state.

Each violation can carry a penalty of up to $5,000, or $10,000 if deemed willful, which could total roughly $2 million. The company has said problems stemmed from individual adjusters rather than company-wide practices.

Survivors group position The survivors group argues the sample size is too small and that the proposed fine is too low to deter future issues. It plans to present more than 1,600 policyholder statements and participate in any settlement talks. A spokesperson for State Farm said the company is aware of the petition and remains focused on helping customers recover.

A department spokesperson said any decision on intervention would be made by a hearing officer or administrative law judge once assigned.