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LA Fires,
Insurance

Jun. 18, 2025

State Farm accused of underinsuring wildfire victims

State Farm is accused of underinsuring California wildfire victims by manipulating reconstruction estimates and pushing high-risk policies to the FAIR Plan, causing an insurance crisis.

State Farm is accused in a new lawsuit of orchestrating a wide-ranging scheme to increase market share in California at the expense of its clients, who say they're unable to rebuild their homes after the destructive L.A. County wildfires.

The complaint, filed Monday in Los Angeles County Superior Court, claims violation of California's Unfair Competition Law; negligence; negligence (agent); breach of implied covenant of good faith and fair dealing; breach of contract; refo...

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