SACRAMENTO – Governor Gavin Newsom on May 4 warned insurance companies that they may be subject to state enforcement if they unlawfully delay or deny claims for LA fire survivors. The warning comes as the State Insurance Commissioner today announced an enforcement action against State Farm General Insurance Company after an expedited investigation uncovered significant mishandling of insurance claims filed by survivors. That action seeks the largest penalties following a disaster this century. 

Governor Newsom has been a staunch advocate for survivors and their ability to access coverage. Last year, Governor Newsom sent a letter to the FAIR plan warning that their handling of survivors’ smoke damage claims was unscrupulous and unfair, and ultimately may be illegal — urging them to resolve fire survivors’ claims with the speed and fairness FAIR Plan customers deserve. 

Governor Newsom has been squarely focused on stabilizing and modernizing California’s home insurance market, especially as climate change drives more severe wildfire risk.