Los Angeles, CA — Consumer Watchdog issued the following statement on Insurance Commissioner Ricardo Lara’s announcement today of a market conduct examination into State Farm claims handling abuses after the Eaton and Palisades fires.
“State Farm customers have come forward with evidence of their claims being low-balled, slow-walked and outright denied. Today’s announcement of an investigation came only because these Eaton and Palisades fire survivors raised their voices to demand the insurance benefits they paid into for decades. However market conduct exams can take years. Fire survivors facing financial devastation need an investigation into whether State Farm is breaking the law expedited and made public before another massive rate hike is approved. After the 1991 Oakland Hills fires, former Insurance Commissioner John Garamendi ordered insurance companies to pay survivors for their full loss within months of launching an investigation into claims complaints. Commissioner Lara must act with the same urgency and complete the investigation before another rate hike is approved,” said Carmen Balber, executive director of Consumer Watchdog.
