LA County opens investigation into Farmers over wildfire claims handling

A companion measure, SB 876, the Disaster Recovery Reform Act, would double penalties for claims-handling violations during declared emergencies and let the commissioner order restitution directly to policyholders, while also targeting the multiple-adjuster reassignments that have featured heavily in the State Farm case.

Both bills passed the Assembly earlier this year and remain in play in Sacramento; if enacted, they would give regulators sharper tools the next time a carrier's smoke and contamination claims draw this kind of complaint.

Farmers said it remains focused on "handling claims with care, consistency, and attention to each customer's unique situation." The county's investigation is ongoing, and no findings of wrongdoing have been made public.