Senator Sasha Renée Pérez (D-Pasadena) issued the following statement on the approval of State Farm’s emergency rate increase:
“The decision to grant State Farm’s unprecedented request for an emergency rate increase disregards the hardships faced by fire victims and their calls for accountability,” said Senator Sasha Renée Pérez (D-Pasadena).
“Last month, I led a group of lawmakers calling on Insurance Commissioner Ricardo Lara to delay a decision on the increase until the California Department of Insurance could conduct an expedited investigation into hundreds of complaints made against State Farm. These complaints came from Los Angeles County fire victims, including many in my district, who shared their experiences of delays and denials in receiving their valid insurance claims.”
“This rate increase raises questions about California’s regulatory priorities and suggests prioritizing the financial interest of State Farm over the needs of fire victims. My constituents suffered significant losses in the Eaton Fire and deserve a full investigation into their complaints, which include excessive documentation demands, denial of claims despite clear evidence, a convoluted and arduous claims process, and a lack of response when seeking assistance.
The state must do more to hold State Farm accountable to ensure it meets its obligation to policyholders, especially during times of large-scale disasters. These families, along with all State Farm policyholders in California, deserve a responsive and stable insurance carrier that will deliver on its obligations,” said Senator Pérez.
