Senator Pérez leads effort to stop State Farm’s emergency rate increase and calls for investigation into L.A. County wildfire survivors’ insurance complaints

Sacramento – Citing hundreds of complaints against State Farm Insurance by Los Angeles County wildfire survivors, Senator Sasha Renée Pérez (D-Pasadena) and members of the State Legislature co-authored a letter calling on the California Department of Insurance to halt State Farm’s request for an emergency rate increase until the department conducts an investigation into the complaints.

In a letter addressed to Insurance Commissioner Ricardo Lara, Senator Pérez, Senator Ben Allen (D-Pacific Palisades) and Assemblymember Sade Elhawary (D-South Los Angeles) wrote:

“In light of the hundreds of credible, first-hand reports we have received detailing the mishandling of claims from victims of the Los Angeles County fires, we urge your office to defer any consideration of a rate increase until a thorough and expedited Market Conduct Examination has been completed.”

Under the proposed rate increase, State Farm policyholders across California would pay an average increase of 17% for homeowners, 15% for renters and condominiums, and 38% for rental dwellings.

“The survivors of the Los Angeles County fires are experiencing financial and emotional hardships due to State Farm's delays and denials of their valid insurance claims. Despite years of faithfully paying premiums, they have been met with excessive documentation demands, denial of claims despite clear evidence, a convoluted and arduous claims process, and silence when seeking help after the disaster,” the Legislators wrote.

“These families are not just statistics; they are our neighbors – our constituents – and deserve accountability, safety, and the stability that our insurance system promises. It is imperative that we, as public leaders, intervene during this crucial time, as our choices will determine whether Californians see the insurance system as one that serves people or simply safeguards profits,” the Legislators wrote.

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Senator Sasha Renée Pérez is Chair of the Senate Education Committee and represents the 25th Senate District that includes the communities of Glendale, Pasadena, Alhambra, Altadena, Arcadia, Claremont, Glendora, La Cañada Flintridge, La Crescenta-Montrose, Monrovia, Monterey Park, Rosemead, San Gabriel, San Marino, Sierra Madre, South Pasadena, Temple City, Fontana, Rancho Cucamonga, Upland, and San Antonio Heights.