insurer

The cornerstone of Kim’s platform is her call for the state-run property disaster insurance program, which largely would be funded by policyholders. Coverage would be universal, with policyholders automatically enrolled. With no need to generate shareholder profits, fund marketing or pay high executive salaries, she contends the plan could better invest in fire prevention and make buildings and property more fire resilient. Such a drastic change in the insurance system would require legislation and support from the governor.

“Voters I’ve talked to don’t want to see the same old tinkering with the system, because most voters agree that it’s actually magical thinking that doing the same tinkering of the existing system is going to lead to a different result,” she said.

Allen is sharply critical of Kim’s plan, which he says is woefully short on details. Instead, he is focusing on the mechanics of improving the current system — for both homeowners and insurers. He wants to speed reviews of insurer rate applications, create a business office to attract more carriers to the state and work with elected officers at all levels to design programs that reduce fire risk of individual properties and at the neighborhood and community scale.

“I’m focused on what’s actually doable. The people who suffer from these terrible fires don’t need a 10-year experiment. Voters of all stripes, not just Republicans, are not interested in making the state a guinea pig,” he said.

Los Angeles County launched a probe into Farmers Insurance Company’s handling of claims by policyholders impacted by last year’s devastating Eaton and Palisades wildfires, after a growing number of residents complained of delays, denials and underpayments.

In a letter sent to Farmers on Wednesday, the county’s lawyers said if the company is engaging in any unlawful or unfair business practices, it must immediately stop.

“Eaton Fire survivors did everything right—responsibly paying their premiums year after year—but when disaster hit, Farmers left them with a contaminated home and refused to pay for testing and cleanup,” said Los Angeles County Supervisor Kathryn Barger, who represents Altadena, in a statement.

“My constituents shouldn’t have to walk back into homes with lead and asbestos because an insurance company won’t pay for the test that would prove it’s there,” she added.

Farmers disputed the county’s claims.

“As always, we operate in accordance with applicable laws and regulations,” the insurer said in a Thursday statement. “We do not believe the inquiry accurately characterizes our actions or practices and will cooperate through the appropriate process.”

“Serving our customers during difficult times is at the heart of what we do, which is why each claim is reviewed individually, taking into account the specific circumstances of the loss and the coverage provided under the policy,” the company said. “We remain focused on handling claims with care, consistency and attention to each customer’s unique situation.”

County officials said that at a recent meeting with Eaton fire survivors, those with Farmers policies said the insurer had been slow or resistant to pay for toxin testing by qualified industrial hygienists, forcing residents to pay for it themselves.

The testing revealed that many homes were contaminated with unsafe levels of lead, asbestos, chromium, and other toxic substances, the county said.

The residents also told the county that Farmers has refused to pay for adequate remediation of the contaminants and declined to cover ongoing living expenses.

“After paying millions of dollars in premiums, policyholders deserve the benefits and support they paid for,” said Supervisor Lindsey Horvath, whose district includes Pacific Palisades. “Families whose homes survived the Palisades and Eaton Fires but remain damaged or contaminated should not be forced to choose between returning to an unsafe home and financial devastation.”

The new investigation comes after the county filed a lawsuit against State Farm on Aug. 31 for its handling of Eaton and Palisades fire claims. The county claims State Farm engaged in illegal and deceptive business practices that kept victims from receiving what they were entitled to under their policies. State Farm denied the county’s claims.