Every Fire Survivor’s Network asks to intervene in California Department of Insurance case over State Farm’s handling of Eaton and Palisades Fire claims
PACIFIC PALISADES, CA — Consumer Watchdog today joined Every Fire Survivor’s Network (EFSN), Michelle Meyers, a partner at Singleton Schreiber, and wildfire survivors at Palisades Charter High School as EFSN announced its petition to intervene in the California Department of Insurance enforcement proceeding against State Farm General Insurance Company over its handling of claims from the January 2025 Eaton and Palisades Fires.
In the petition, EFSN, represented by Michelle Meyers of Singleton Schreiber and Consumer Watchdog, seeks full party status in the proceeding, including the right to receive filings, conduct discovery, present evidence, cross-examine witnesses, submit briefing, present oral argument, and participate in pre-hearing conferences and settlement discussions.
Survivors at today’s press conference described delays, denials, lowball estimates, repeated adjuster changes, and other barriers that they say have slowed their ability to rebuild and return home. EFSN also asked that evidentiary hearings be held in Los Angeles County, where the fires occurred, where the affected properties are located, and where survivor witnesses live.
The Department’s enforcement proceeding follows a market conduct examination of State Farm’s handling of first-party claims arising from the January 2025 fires. According to the petition, the Department reviewed a random sample of 220 State Farm claims and found 398 alleged violations across 26 violation categories, including delays, failure to provide required notices, adjuster reassignment issues, underpayment, misrepresentations regarding policy terms, and claim file documentation failures.
The Department’s May 4, 2026 Accusation and Order to Show Cause seeks potential suspension of State Farm’s certificate of authority for up to one year, a cease-and-desist order, and civil penalties of up to $10,000 per willful act.
EFSN argues that its members include State Farm policyholders whose claims, homes, and legal rights are directly affected by the proceeding. The petition states that survivor testimony and documented policyholder accounts are relevant to whether State Farm’s alleged violations were isolated errors or reflected a general business practice under California’s Unfair Insurance Practices Act.
“State Farm’s playbook of systemic delays, denials, and underpayments has one Achilles’ heel: it depends on survivors being exhausted and isolated,” said Joy Chen, Executive Director of Every Fire Survivor’s Network. “Here in Los Angeles, survivors are no longer isolated. We are together, and that’s what makes the Los Angeles recovery different.”
At the press conference, Palisades survivors described how State Farm’s claims process became a second disaster after the fire. One, a single mother who lost the home where she raised her daughters, said she has been passed among seven adjusters, received only 65% of her contents coverage, and now faces signing a construction contract without knowing whether State Farm will pay what she is owed. Another, a longtime State Farm customer who lost the home where her family lived for 30 years, described preparing an 8,153-item inventory, repeatedly resending documents in different formats, and receiving State Farm calculations that she said contained numerous errors, unreasonable depreciations, and no clear explanation.
“The Department identified violation categories here. Survivors lived them,” said Meyers. “The people who experienced the harm should not be spectators while decisions about accountability are being made. EFSN’s intervention would allow survivors to present evidence, participate in discovery, challenge inadequate settlements, and ensure their experiences become part of the official record.”
“Public accountability must begin with listening to the people who were harmed,” said William Pletcher, Litigation Director at Consumer Watchdog. “Basic fairness here means hearing from survivors, not just the insurance industry and its regulators.”
“This filing is about making sure the record is built with Los Angeles fire survivors whose rights are directly impacted having a seat at the table,” said Pamela Pressley, Senior Attorney at Consumer Watchdog. “CDI’s enforcement case should not be resolved only between the regulator and State Farm. Survivors should be able to test the evidence, present their own, and be heard before any monetary penalty or other remedies are approved.”
Last month, State Farm announced Axel Del Cid as the executive overseeing the L.A. recovery and said his first priority was listening to survivors. EFSN invited Del Cid to attend today’s press conference at Palisades Charter High School. Although a seat was reserved for him, he did not attend.
Through the petition, EFSN seeks full intervenor status with discovery rights and participation in settlement discussions. Among the remedies requested are a systematic review of closed Eaton and Palisades State Farm claims where violations may have occurred, corrective notices to affected policyholders, reimbursement of improperly allocated costs, and penalties calibrated to the full scope of violations.
The petition (opens in new tab) was filed in In the Matter of the Certificate of Authority of State Farm General Insurance Company, File No. OSC-2026-00001.
State Farm 05-01-26 Market Conduct Report (opens in new tab)
05-04-26 Accusation, Order To Show Cause, Notice Of Penalties, Notice Of Hearing (opens in new tab)
About Consumer Watchdog
Consumer Watchdog is a nonprofit, nonpartisan public interest organization dedicated to protecting consumers and taxpayers through advocacy, litigation, and public education.
About Every Fire Survivor’s Network
Every Fire Survivor’s Network is a nonprofit organization of Eaton and Palisades Fire survivors and allies advocating for fair treatment, transparency, and accountability in the recovery process.
