Pérez Calls for Tougher Action Against State Farm Following State Insurance Department Findings

Altadena, one year later (Photo – Staff)

Sen. Sasha Renée Pérez, (D-Pasadena), issued a sharply critical statement following the announcement of enforcement action against State Farm by the California Department of Insurance.

By News Desk

Pérez said the administrative action was “long overdue” but argued it does not go far enough to ensure meaningful consequences for the insurer. For more than a year, she noted, hundreds of Eaton Fire survivors have raised concerns about how State Farm handled their claims. She emphasized that when large insurers fail to meet their obligations, “real accountability is necessary.”

The senator pointed out that it has been a full year since she urged the Department of Insurance to conduct a market conduct examination into State Farm and to delay any consideration of the company’s request for an emergency rate increase. According to Pérez, the findings of that examination confirm what wildfire survivors have been alleging.

Despite this, Pérez expressed disappointment that regulators approved the rate increase without attaching stricter accountability measures. She called for the maximum allowable fines against State Farm and said the situation should send a clear message that California stands firmly in defense of fire survivors.

Pérez also linked the issue to her legislative efforts, citing two bills she authored: SB 877, which would require insurers to fully disclose all loss estimate documents to policyholders, and SB 878, which would impose penalties for unjustified payment delays.