Dear Friend,
Here at the Eaton Fire Survivors Network, our 3rd pillar is clear: securing the full insurance payouts that all Eaton and Palisades survivors are owed. We began with State Farm because, even amid gross misconduct, they keep managing to secure massive rate hikes.
I’m writing today to fill you in on what our state regulator is doing. This matters to you, whether or not you’re insured by State Farm. That’s because what happens with State Farm will set the precedent for how every other insurance company is allowed to operate in California.
Originally, the State Farm rate proceeding wasn’t set to start until October.
On July 18, under cover of darkness, Insurance Commissioner Ricardo Lara quietly filed a
legal proposal to
bifurcate the upcoming State Farm rate proceeding.
If approved by the judge, this maneuver would fast-track a billion-dollar rate hike, while indefinitely postponing or altogether avoiding any scrutiny of State Farm’s misconduct.
This is not procedural housekeeping. It’s regulatory failure with life-altering consequences. Commissioner Lara has publicly admitted receiving more complaints about State Farm than any other private insurer. Yet the agency charged with protecting Californians is now shielding the company doing the greatest harm.
Today, the Eaton Fire Survivors Network delivered a 47-page package to Commissioner Lara.
It includes:
Lara has publicly admitted that State Farm generates more consumer complaints than any other private insurer. And yet, the agency that’s supposed to protect us is now shielding the company doing the greatest harm.
That’s why today, the EFSN delivered a 47-page package to Commissioner Lara, including:
- A letter from Eaton and Palisades fire survivors
- Nearly 500 firsthand accounts documenting systemic misconduct
- Clear citations of laws State Farm is violating
If granted, State Farm’s rate hike would move forward—without completing the Market Conduct Exam that Commissioner Lara just announced. There would be no transparency. No accountability. And no timeline for when survivors will get the money we need to recover.
And if California regulators allow this to happen with State Farm, every other insurer will follow their lead. That’s why this fight affects us all.
The State Farm Files: 7 Core Themes from Nearly 500 Survivors
- Abandoned after decades of paying premiums
- Rotating adjusters force us to start over again and again
- Refusal to test for toxins—even with infants and toddlers in the home
- Loss estimates slashed to a fraction of the real cost
- Families pushed to the brink of homelessness
- Crushing physical and emotional toll
- Survivors demanding Lara hold State Farm accountable
Key stat:
According to the Department of Angels, 70% of insured Eaton and Palisades fire survivors are experiencing claim delays, denials, or underpayments. For State Farm policyholders, it’s 82%.
Billions in legally obligated payouts remain unpaid. The insurance system, under Commissioner Lara’s watch, is now obstructing our entire regional recovery.
Our ask to Commissioner Lara:
- Withdraw the bifurcation proposal
- Complete and publish the Market Conduct Exam
- Freeze all rate hikes until State Farm complies with California law
We never asked for this fight. We’re simply trying to rebuild our lives and protect our kids. But when the future we’ve worked so hard to build is being stolen by corporate misconduct and regulatory failure, we have no choice but to stand together and fight back.
We’re also developing a legislative agenda to hold all insurers accountable. Stay tuned.
And I hope to see you tonight (Friday) at our very first First Friday Community Dinner at the Good Neighbor Bar, 5:30–8:30. Sign up here. With hugs and solidarity,
Joy Chen