Senators call for investigation into insurance department over handling of L.A. wildfire claims

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Two California senators have asked for an investigation into the state insurance department’s handling of complaints filed by Los Angeles wildfire victims struggling to collect payouts from State Farm.The calls follow a Los Angeles Times report Thursday that revealed a range of complaints among more than a dozen fire victims over how the state insurance department has handled their claims since the January wildfires.The Times also reported that a state compliance officer who cited State Farm for numerous potential violations was punished with a 10% pay cut after a State Farm executive complained her criticisms of the insurer were “accusatory.” Business More than a dozen homeowners and their representatives told The Times that the California Department of Insurance did little to resolve a wide range of complaints, or prevent new problems, in State Farm’s handling of their claims.The inquiry is sought by lawmakers from two fire zones: Sens.Ben Allen (D-Pacific Palisades) and Sasha Renée Pérez (D-Alhambra).

“These are pretty shocking allegations,” Allen said.“We think we need to do something with this information.

What form exactly it will take has yet to be determined.”Their request, made verbally on the Senate floor Thursday, is now before newly appointed Senate Insurance Committee Chairperson Steve Padilla (D-San Diego), who has a track record of consumer issues but also has partnered with the state’s insurance commissioner on an insurance-fix bill.He could call for an information hearing, or a more formal Senate investigation with powers of subpoena.

Padilla’s office said the senator had not received a “formal request,” but legislative tools to address how insurers are handling claims were being considered.“We will continue to gather facts which will determine next steps,” his office said in an emailed response.Pérez also questioned the status o...