Latest news with #SashaPérez
The Independent
2 days ago
- Business
- The Independent
California insurance regulator launches investigation into State Farm over claims from LA fires
California 's top insurance regulator on Thursday launched an investigation into State Farm over the company's handling of claims from the January Los Angeles-area wildfires. The investigation comes after survivors of the Palisades and Eaton fires said that the state's largest home insurer was delaying and mishandling claims regarding damage to their homes and possible contamination from smoke. The blazes destroyed thousands of buildings around Los Angeles, killed 30 people and displaced thousands of others. They were estimated to be among the costliest natural disasters in U.S. history. California Insurance Commissioner Ricardo Lara said the investigation will review whether the company complied with state consumer protection and claim-handling laws. 'Californians deserve fair and comprehensive treatment from their insurance companies," the Democrat said in a statement. "No one should be left in uncertainty, forced to fight for what they are owed, or face endless delays that often lead consumers to give up.' Survivors of the Eaton fire in Altadena have raised concerns about possible lead, asbestos and heavy metal contamination in their homes because of smoke. State Sen. Sasha Renée Pérez, a Democrat representing Pasadena, in April called on Lara to launch a probe into the alleged mishandling of claims. 'The survivors of the Los Angeles County fires are experiencing financial and emotional hardships due to State Farm's delays and denials of their valid insurance claims," she and other lawmakers said at the time. "Despite years of faithfully paying premiums, they have been met with excessive documentation demands, denial of claims despite clear evidence, a convoluted and arduous claims process, and silence when seeking help after the disaster.' State Farm has about 1 million home insurance customers in California. Insurers including State Farm had difficulty doing business in California even before the wildfires. In 2023, State Farm and others stopped issuing residential policies because of the wildfire risk. Last year, Lara unveiled regulations aimed at giving insurers more latitude to raise premiums in exchange for more policies in high-risk areas. State Farm said at the time the company was struggling. The wildfires, which destroyed more than 16,000 buildings, made matters even worse. In May, state regulators allowed State Farm to raise premiums 17% statewide for its California home insurance customers to help the company rebuild its capital after the costly wildfires. State Farm initially sought a 22% rate increase for homeowners but revised it down a recent hearing before an administrative judge. The new rates in effect this month include a 38% hike for rental owners and 15% for tenants. People who lost homes in the fires sued in April, alleging State Farm and other insurers colluded to 'suddenly and simultaneously' drop coverage or halt writing new policies in fire-prone areas, including areas that burned. That left the homeowners underinsured and struggling to rebuild, the lawsuit alleges. The American Property Casualty Insurance Association, the largest national trade association representing home, auto and business insurers, called the lawsuits meritless, saying it monitors to ensure its members comply with the state's antitrust laws. ___ Associated Press writer Mead Gruver reported from Cheyenne, Wyoming. ___
Yahoo
2 days ago
- Business
- Yahoo
California insurance regulator launches investigation into State Farm over claims from LA fires
SACRAMENTO, Calif. (AP) — California's top insurance regulator on Thursday launched an investigation into State Farm over the company's handling of claims from the January Los Angeles-area wildfires. The investigation comes after survivors of the Palisades and Eaton fires said that the state's largest home insurer was delaying and mishandling claims regarding damage to their homes and possible contamination from smoke. The blazes destroyed thousands of buildings around Los Angeles, killed 30 people and displaced thousands of others. They were estimated to be among the costliest natural disasters in U.S. history. California Insurance Commissioner Ricardo Lara said the investigation will review whether the company complied with state consumer protection and claim-handling laws. 'Californians deserve fair and comprehensive treatment from their insurance companies," the Democrat said in a statement. "No one should be left in uncertainty, forced to fight for what they are owed, or face endless delays that often lead consumers to give up.' Survivors of the Eaton fire in Altadena have raised concerns about possible lead, asbestos and heavy metal contamination in their homes because of smoke. State Sen. Sasha Renée Pérez, a Democrat representing Pasadena, in April called on Lara to launch a probe into the alleged mishandling of claims. 'The survivors of the Los Angeles County fires are experiencing financial and emotional hardships due to State Farm's delays and denials of their valid insurance claims," she and other lawmakers said at the time. "Despite years of faithfully paying premiums, they have been met with excessive documentation demands, denial of claims despite clear evidence, a convoluted and arduous claims process, and silence when seeking help after the disaster.' State Farm has about 1 million home insurance customers in California. Insurers including State Farm had difficulty doing business in California even before the wildfires. In 2023, State Farm and others stopped issuing residential policies because of the wildfire risk. Last year, Lara unveiled regulations aimed at giving insurers more latitude to raise premiums in exchange for more policies in high-risk areas. State Farm said at the time the company was struggling. The wildfires, which destroyed more than 16,000 buildings, made matters even worse. In May, state regulators allowed State Farm to raise premiums 17% statewide for its California home insurance customers to help the company rebuild its capital after the costly wildfires. State Farm initially sought a 22% rate increase for homeowners but revised it down a recent hearing before an administrative judge. The new rates in effect this month include a 38% hike for rental owners and 15% for tenants. People who lost homes in the fires sued in April, alleging State Farm and other insurers colluded to 'suddenly and simultaneously' drop coverage or halt writing new policies in fire-prone areas, including areas that burned. That left the homeowners underinsured and struggling to rebuild, the lawsuit alleges. The American Property Casualty Insurance Association, the largest national trade association representing home, auto and business insurers, called the lawsuits meritless, saying it monitors to ensure its members comply with the state's antitrust laws. ___ Associated Press writer Mead Gruver reported from Cheyenne, Wyoming. ___ Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna Sophie Austin And Mead Gruver, The Associated Press Sign in to access your portfolio
CBS News
14-05-2025
- Business
- CBS News
California judge approves State Farm's 17% insurance increase
Following a judge's ruling, State Farm customers in California are one step away from paying more on their insurance to alleviate the company's "dire" financial situation after the Los Angeles fires. The decision, which Insurance Commissioner Ricardo Lara accepted, grants the company a $400 million cash infusion from its parent company and outlines a 17% increase for homeowners policies, lower than State Farm's initial proposal of 21.8%. According to the California Department of Insurance, the judge believed that State Farm had evidence of "extraordinary financial distress." The increases will go into effect on June 1, following another hearing with a neutral judge. "State Farm must now justify its financial condition and detail its recovery plan in a full rate hearing before a neutral judge and my Department's experts," Lara said in a statement. The insurance giant submitted its emergency rate increase request following the destructive Los Angeles wildfires, including the Eaton and Palisades fires — the second and third-most destructive fires in California history, which destroyed a combined 16,248 buildings and damaged thousands more. Following the request, State Farm faced backlash from Eaton Fire survivors over apparent insurance payment delays. State Senator Sasha Renée Pérez, who represents the burn scar residents, asked for the state to delay the decision until an expedited investigation into the complaints in April. "The decision to grant State Farm's unprecedented request for an emergency rate increase disregards the hardships faced by fire victims and their calls for accountability," said Pérez. Lara, who has also faced backlash over the request, assured residents that he weighed the options before adopting the decision. "I am focused on ensuring that State Farm pays its claims to wildfire survivors fully and fairly – and nothing is off the table," Lara said. "I am balancing all the facts. Protecting all State Farm customers and the integrity of our insurance market is an urgent matter. Let me be clear: We are in a statewide insurance crisis affecting millions of Californians. Taking this on requires tough decisions. This is not a game." The company also agreed to "refrain from implementing new block non-renewal programs through the end of 2025," according to the California Department of Insurance.
