CA targets State Farm with penalties, possible underwriting ban over wildfire claim fallout

California regulators are escalating their fight with State Farm.  The California Department of Insurance is seeking up to $4 million in penalties and weighing a one-year suspension of the insurer’s ability to write new policies in the state over its handling of claims tied to the January 2025 Los Angeles wildfires, the Los Angeles Daily News reported. The department said its investigation, launched last summer, found the company delayed investigations, underpaid homeowners and repeatedly reassigned adjusters — a tactic claimants referred to as “adjuster roulette”— creating confusion for policyholders already navigating disaster recovery. The probe reviewed 220 claims and identified […]This article originally appeared on The Real Deal. Click here to read the full story.