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L.A. fire victims say state regulators ignored complaints about State Farm

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L.A. fire victims say state regulators ignored complaints about State Farm

Last spring, victims of the Los Angeles wildfires complained loudly and en masse over how State Farm General was handling their insurance claims, especially for smoke damage.

Insurance Commissioner Ricardo Lara urged them to lodge formal complaints with the department.

“That’s how we track and how we monitor, and we make sure that we follow through … make sure that those claims are being addressed,” he told several hundred fire victims in a Zoom forum in May.

Nearly a year later, however, many homeowners and their representatives say the promise was hollow. They voice mounting frustration over how the California Department of Insurance investigated their complaints about State Farm.

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More than a dozen homeowners and their representatives told The Times that the department did little to resolve a wide range of complaints, or prevent new problems, in State Farm’s handling of their claims.

“Seventy percent of insured Eaton and Palisades fire survivors are facing delays and denials that are impeding their recovery,” said Joy Chen, executive director of the Eaton Fire Survivors Network, citing a survey by the nonprofit Department of Angels. “That is evidence of the failure of this department to do its job.”

Policyholders shared complaints lodged against State Farm over denials to pay for the cleanup of fire toxins, rebuild estimates well below actual construction costs and delayed checks for living expenses. To the state they cited frequent turnover in adjusters and demands to sign legal papers agreeing to forego future reimbursement for personal items without itemized receipts.

Now, they said, State Farm is cutting off prepaid rentals and leases for fire victims who aren’t close to returning home.

Most of the fire victims said they were left in the dark about their cases, and were told to stop trying to communicate with their complaint handlers. Some said their cases were closed before their insurance disputes were settled.

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“It doesn’t feel like it’s an actual, legitimate organization that’s meant to protect consumers,” said Len Kendall, who lost his home to the Pacific Palisades fire.

Kendall initially complained to the state about State Farm in July, citing delays in handling his total loss claim, dealing with multiple adjusters and struggles to get reimbursed for living expenses. Later he said he was told stop communicating with the state and to send his records “directly and solely” to State Farm.

“We’re told that they’re tracking information and speaking to the insurers, but we have no idea what is happening,” Kendall said. “ When it comes to the [insurance department], we’re all totally in the dark.”

A spokesperson for State Farm declined to address complaints from L.A. fire victims.

A representative for the state insurance department declined to comment on its handling of complaints against State Farm.

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The agency did say it had “recovered” more than $210 million for fire victims “through its intervention and aggressive advocacy on these complaints.”

“We do our best to approach every wildfire survivor with empathy and understanding,” Michael Soller, spokesman for the insurance department, said late Wednesday. “Our goal is helping people recover fully, fairly, and quickly. We hold ourselves to the highest standards.”

He encouraged those with insurance disputes to contact the department. “We will do our best to expedite their claims,” he said.

The mistrust between fire victims and the department has been deepened by newly released records showing the department disciplined one its senior complaint handlers after she criticized State Farm over its claims handling, according to personnel records reviewed by The Times.

In a July letter to a State Farm case manager, Coleen Vandepas — a 32-year-veteran of the department who had previously been commended for her work on behalf of policyholders — accused the insurer of “shoddy” and “shameful” handling of an L.A. fire claim, including claiming it did not have test results within the insurer’s possession. She demanded the company apologize to its policyholder. In another policyholder’s case, she said State Farm engaged in a “pattern and practice” of delay.

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Records show that days later, a State Farm lawyer called a top-level executive at the insurance department to complain about Vandepas’ statements.

Vandepas’ State Farm caseload was subsequently reassigned and she was docked 10% of her pay, according to personnel records. Her supervisors said Vandepas had made “accusatory” and “improper” remarks about State Farm, and cited a LinkedIn post State Farm had called attention to, in which she characterized insurance company threats to leave California as “wailing” by companies that wanted to “make huge amounts off the backs of the citizens of California.”

A state personnel board law judge reviewing the discipline called Vandepas’ remarks “rude and disparaging” and the full board this month rejected her appeal. A new appeal has been filed with the California Public Employee Relations Board, noting Vandepas was also protected as a union steward and was in part punished for raising internal workload issues.

The workplace action has angered advocates for wildfire victims.

“This sends a message to every single person who works at [the California Department of Insurance]: ‘You may be next,” said Chen, a former deputy mayor of Los Angeles.

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Through its corporate media office in Illinois, State Farm declined to comment on the sanctions against Vandepas.

“We are not a party to the case in question,” the Illinois-based insurer said in a statement. “We have ongoing relationships with state regulators so we can best meet the needs of our customers.”

Investigations into State Farm

State Farm was in the midst of dropping some 72,000 policies in California, and seeking a $1.3-billion rate hike, when the Jan. 7, 2025, firestorm ravaged Los Angeles. The disaster killed 31, destroyed more than 16,000 structures, and left many others unable to return to their homes. As of November, the insurance department reported more than 42,000 home and commercial insurance claims.

By far, the largest share of those claims are with State Farm General, the California subsidiary of State Farm Mutual. A survey of about 2,300 five victims by the Department of Angels noted State Farm policyholders reported higher rates of claim denials, low estimates and other complaints than customers of other insurers.

Los Angeles County in November opened its own investigation into State Farm’s claims handling, demanding the insurer turn over reams of information, including company policy guides, training materials for handling fire and smoke claims, among other documents.

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In June, Lara launched what he called an expedited market conduct exam of State Farm. The findings have yet to be released.

Lara rejected pressure from wildfire victim advocates to delay an interim 17% emergency hike until State Farm’s claims practices could be examined. He said they would be taken up in the full rate review. There has been no public hearings on the full hike. The case could be settled by the end of the month, state lawyers told a judge this week.

The insurance giant has a history of pushing strongly against regulators.

The company has refused to provide financial records sought by California actuaries attempting to judge the merit of its pending rate hike, including plans to drop another 11,000 policies, according to public rate filing records obtained by The Times.

The insurance department tracks complaints by disaster, as well as by insurer, but has rejected public record requests for that data. Its consumer complaint group has just 34 employees and hasn’t changed staffing levels despite the surge in wildfire claims in 2025, according to California payroll records.

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Internal agency emails show a State Farm executive in May 2025 told Lara the insurer had received less than 310 policyholder complaints among 10,359 Los Angeles fire claims at the time. (Most of the cases reviewed by The Times were filed later.)

“SFG is not an outlier with respect to the number of complaints received in relation to the number of claims from the January 2025 wildfires,” State Farm General CEO Dan Krause wrote to Lara.

Insurance companies have 21 days to respond when a complaint is filed, and then state compliance officers can review the record for adherence with insurance law. They cannot make a determination of fault, or the size of an award. In a process kept confidential, they can challenge insurers with questions, asking them to explain their decisions. If they see violations, they cannot take action against an insurer. And they cannot tell the policyholder.

The insurance department contends the complaint process has resulted in the reversal of claim denials, increased payouts and agreements in individual cases to test for the toxic residues of wildfire smoke.

But interviews and records reviewed by The Times revealed inconsistencies in how wildfire disaster complaints were handled.

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Some compliance officers told policyholders to stop sharing correspondence with their insurance companies or adjusters, saying they would read the claim files for themselves. Policyholders frustrated by the silence sought to file new complaints or have their cases reassigned, only to be refused.

After five months of sending protests about a “non-responsive” compliance officer, one fire victim was told by a bureau supervisor that she had two other alternatives to resolve her insurance dispute: seek a lawyer or file a lawsuit.

Three officers attempted to close policyholder cases even though the insurance claim remained in dispute. In one instance, a compliance officer referenced the wrong insurance company and the wrong issue being contested, letters shared with The Times show.

Andrew Wessels said State Farm prematurely closed this case after he challenged the insurers initial refusal to address toxic residues in his house left standing among the rubble of the Eaton fire, or its failure to pay living expenses.

For months, Wessels repeatedly wrote to alert his compliance officer that State Farm was making false claims. The state reviewer wrote back once to acknowledge receipt of further complaints he would add to the case file. Then in October the case officer tried to close the still-disputed State Farm claim, calling it “in stable condition.”

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“The Department would find its task of regulating the insurance industry much more difficult without the help of consumers like you,” the closure letter said.

Wessels protested and his case was reopened. He continues to wrestle with State Farm over safety tests, delayed living expenses and ever-changing adjusters. He emails updates to his state insurance compliance officer.

“I just periodically send an email into oblivion, basically,” he said.

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Want an AI-proof job? New research says you may be safer at companies embracing the technology

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Want an AI-proof job? New research says you may be safer at companies embracing the technology

While AI is often cited as one of the reasons for mass layoffs, particularly in the tech sector, for fast-growing companies it also seems to be creating new jobs in many companies, according to a study published Tuesday from financial services company Ramp and employment database Revelio Labs.

“Our early result is that it looks like firms are starting to look for more entry-level hires, likely people who are more AI native,” said Ara Kharazian, the lead economist at Ramp, a financial services company that found a rise in early-career hiring by companies in the period they started spending heavily on AI.

The study tracked AI spending and the workforce records of nearly 22,000 U.S. companies between January 2021 and February 2026.

It found that firms that spent more on AI ended up increasing their workforce headcount by an average of 10% over the two years after rolling out the technology. Companies that made the largest AI investment expanded entry-level job hiring by 12%.

“If you are a job seeker, or you are graduating from college, and you’re choosing between two different firms that are otherwise similar, I would choose the one that’s using AI,” Kharazian said. “Our paper shows that that firm is going to grow faster.”

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The early and intense AI adopters spent more than $100 per month per employee on AI and had their employees using advanced AI, such as coding subscriptions, as opposed to simple ChatGPT subscriptions.

The low-intensity, casual AI adopters didn’t see any hiring gains and reduced headcount.

The Ramp study showed a positive effect on employment from AI because it focused on firms adopting AI, many of them fast-growing, venture-backed companies hiring AI-native junior employees.

It reached a different conclusion than a November 2025 Stanford University study, which examined payroll data across the entire labor market and found that employment among young software developers had declined by nearly 20% from its late-2022 peak.

The two findings can both be true, Kharazian said, because the Stanford study was broader and didn’t focus just on the firms that use AI.

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“While there may be overall weak hiring for young people, what we found is that hiring is actually strong at the firms that use AI, and the firms that use AI intensely,” he said.

In another recent study on the impact of AI on jobs, the California AI-unemployment tracker examined the state across industries, education levels and region and highlighted some worrying trends.

It seemed to disprove the understanding that AI has been hurting mostly younger employees and those in entry-level jobs.

It found that unemployment insurance claims among college-educated workers in high-AI-exposed jobs, such as customer service and software development, increased after ChatGPT’s release in 2022 and remained elevated through May 2026.

Unemployment insurance claims among master’s and PhD holders in highly AI-exposed occupations have also risen, moving from a baseline average of 13,000 claims per month in November 2022 to between 16,000 and 22,000 claims per month since mid-2023, the study found.

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The study also categorized unemployment claims by age and found that a significant portion of claims were from those aged 36 to 65, signaling that AI’s effect doesn’t only affect early-career jobs.

It also found a higher rate of insurance claims in the San Francisco Bay Area compared with the rest of California, and that job loss claims were concentrated in the technology sector.

In 2026, tech companies have let go of more than 160,000 workers, according to trueup.io, a website tracking industry layoffs.

Many companies have said AI was one of the main reasons for layoffs. Meta, Oracle, Microsoft and other big tech companies have laid off tens of thousands of employees, while simultaneously investing billions in AI data centers.

Ramp’s findings that heavy AI adoption can lead to increased hiring suggests that some of the companies announcing large layoffs may be guilty of blaming regular cost cutting on AI, a practice dubbed “AI washing.”

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“When you hear CEOs talk about layoffs and they attribute it to AI, I would be skeptical,” Kharazian said.

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Commentary: It’s not just vaccines — from infancy to adolescence, Republicans are waging war on children’s health

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Commentary: It’s not just vaccines — from infancy to adolescence, Republicans are waging war on children’s health

The conservative assault on child health starts with the anti-vaccine campaign and proceeds to cutbacks in nutrition assistance and narrowed access to healthcare.

In the old days, before accepted medical protocols came under partisan assault, infants typically received a vitamin K shot to enhance blood-clotting capability and a few drops of an antibiotic to stave off eye infections before leaving the hospital, followed by a thorough round of vaccines against life-threatening diseases.

Americans assumed that “whatever a family could afford, the country had already decided this child was worth protecting,” Robert B. Shpiner, a critical care expert at UCLA medical school, wrote recently. “I have seen children harmed by disease, poverty, by bad luck. I had not, until now, seen them harmed so methodically by their own government.”

Shpiner’s targets were the changes in healthcare policies instituted by the Trump administration generally and Health and Human Services Secretary Robert F. Kennedy Jr., as well as the mistrust in medical authority that Kennedy and his followers have helped to foment.

We’re going to be paying this bill for years to come, because the lack of proper nutrition has profound effects on learning and disability.

— Robert B. Shpiner, UCLA

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As Shpiner wrote in the Guardian, the administration’s assault on child health begins with its anti-vaccination policies. In January, Kennedy’s agency reduced the list of recommended childhood immunizations to 11 from 17, removing shots for COVID-19, hepatitis and meningitis, among other diseases. The agency made the changes without the customary professional consultations, KFF has reported.

But that’s only the tip of the iceberg. “It’s just one thing after another,” Shpiner told me.

What triggered him into writing his Guardian essay, he says, was learning that congressional Republicans had advanced an agriculture appropriations bill that would cut the fruit and vegetable benefit for children in WIC, the supplemental nutritional program for women, infants and children to $10 a month from $26.

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“That got me to looking at this as a sequence,” he says, starting with the reduction of child immunizations, followed by the proposed cuts in WIC and the cuts in food stamps enacted as part of the Republican budget bill that Trump signed one year ago Saturday (i.e., the Fourth of July, 2025).

“The image of us taking food away from kids and not giving them enough money to buy some apples and berries—the short-term response is outrage,” he says, “but the medium- and long-term effect is that we’re going to be paying this bill for years to come, because the lack of proper nutrition has profound effects on learning, and disability and anemia. A number of measures of health and success match with nutrition.”

At almost every stage of childhood development, he notes, programs aimed at preserving or enhancing children’s health have gone on the chopping block.

“A vaccine rule one week, a food program the next,” he wrote. “Each change arrives wrapped in a reasonable rationale: fiscal discipline, local control, parental choice. But arrange them in the order a child actually grows, and the rationales stop mattering.”

Judging from their rhetoric, one would think that Republicans would move heaven and earth to foster child immunizations, nutritional assistance and access to medical care.

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In “Communion,” his recent book about his conversion to Catholicism, for example, Vice President JD Vance writes: “We want more children in our society because children are profoundly good — the greatest value add we can create.”

Yet the programmatic cutbacks advocated for and implemented by the Republican Congress and Trump give the lie to that sentiment. Let’s examine chapter and verse.

Measles is the canary in the coal mine for vaccination and public health, and at this moment, the canary is singing a doleful tune. The Centers for Disease Control and Prevention count 2,134 cases in the U.S. as of June 25. That’s poised to exceed the 2,288 cases in all of 2025, which was the worst outbreak since 1991.

There’s no question why this is happening. It’s because of a decline in measles vaccinations below the 95% generally considered to provide “herd immunity,” in which the disease is so rare that even unvaccinated individuals are protected from exposure.

Kennedy may not deserve all the blame for the immunization decline, but as pseudoscience debunker Steven Novella has pointed out, as secretary he has “done everything possible to undermine vaccine science and confidence in health institutions.”

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Kennedy has paid lip service to the value of the MMR vaccine, which combines immunizations for measles, mumps and rubella. But he has claimed without evidence that the vaccine causes deaths “every year” and that the vaccine hasn’t been safety-tested, which isn’t so. He has asserted that it shouldn’t be subject to a government mandate. He also has promoted treatments for measles that aren’t known to be effective.

(The Department of Health and Human Services didn’t respond to my request for comment on the vaccine initiatives.)

As children grow, the crisis of malnutrition kicks in. The House GOP’s cuts to WIC are still only on the drawing board. But the Republican budget bill incorporated cuts to food stamps — the Supplemental Nutrition Assistance Program, or SNAP — that have driven some 4 million people off the program. In 13 states that have published data, according to the Center on Budget and Policy Priorities, child enrollment fell by more than 800,000, or 16%, between July 2025 and May of this year.

“This is where the nutrition cuts become a medical, not merely a moral, story,” Shpiner says. “Iron-deficiency anemia in infancy is associated with poorer cognitive, motor, and behavioral outcomes that persist more than 10 years after the deficiency itself has been corrected — the deficit does not fully reverse even with later treatment. Withdrawing produce and protein from WIC and SNAP at the peak window of brain growth is not a budget line that resets the following year; it is a developmental exposure with a long tail.”

The combination of reduced immunization and poor nutrition build on each other. “Unvaccinated kids are going to get sicker,” he told me. “If they’re malnourished, they’re going to get sicker. If their parents don’t get affordable care, they’re going to be strapped. It becomes a synergistic and multiplicative cascade.”

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Indeed, the administration’s assault on Medicaid and the Affordable Care Act intensifies the damage. Enrollment in Medicaid and the Children’s Health Insurance Program, which is part of Medicaid, fell by 4.8 million people, or 6%, from March 2025 through March 2026, according to government data. The enrollment decline for children alone came to more than 1.9 million, or 5%.

White House spokesperson Kush Desai challenged the latter figure when I asked for comment. But it came from KFF, which sourced it to the government’s Centers for Medicare and Medicaid Services, or CMS.

“Nothing has been done to alter insurance or Medicaid coverage of any vaccination,” Desai told me by email, “and parents are encouraged to seek out the counsel of their pediatrician to make the best decisions for their children.”

The prospects are for further declines. That’s because new work requirements for enrollees in Medicaid expansion under the Affordable Care Act are almost certain to drive enrollment down, due to obstacles including paperwork burdens and administrative snafus, resulting in even some eligible enrollees losing their coverage.

(These problems became so pronounced in Arkansas, which implemented work requirements during the first Trump term, that a federal judge axed the program.)

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The work rules enacted last year as part of the Republican budget bill aren’t scheduled to start until Jan. 1, but three states are starting early — Nebraska (May 1), Montana (Wednesday) and Iowa (Dec. 1). The impact on enrollment isn’t yet clear.

Whatever the effect of these changes, the public is going to know less about them than before. The reason is that the administration has shrunk the requirements for reports of immunization from states, changing the reports from mandated to voluntary. The affected data include childhood immunization rates against diphtheria, tetanus, pertussis, polio, measles, mumps and rubella, hepatitis, chicken pox and flu; and rates for 13 year olds and expectant mothers.

“While seemingly a small, technical change, the removal of vaccine reporting in Medicaid and CHIP may make it more difficult to monitor and understand vaccination trends for a large share of children in the U.S.,” KFF noted.

I asked the Department of Health and Human Services to explain the rationale for these changes, and specifically whether they were aimed at obscuring the effect of the narrowing of vaccine recommendations, but didn’t hear back.

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How the FIFA World Cup is providing a boost for L.A. businesses

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How the FIFA World Cup is providing a boost for L.A. businesses

Johnny Beig may have played in a semi professional cricket league in Australia, but this summer he’s a big fan of soccer in the United States.

It’s not just because he’s rooting for the World Cup team, though.

FIFA emblems are featured on jerseys that were created by the Dioz Group and distributed for all employees at the 16 FIFA World Cup venues this summer.

(Genaro Molina / Los Angeles Times)

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Last year, Beig’s Beverly Hills-based company, Dioz Group, won a $2.5 million contract with On Location, FIFA’s hospitality partner, to design, manufacture and distribute uniforms for all employees working at FIFA World Cup venues this summer.

These include the people welcoming attendees into stadiums, VIP lounge chefs, waiters and the flagbearers during the opening ceremony.

After a multi-step application process, including presentations of its planning and strategy, Dioz says it produced more than 50,000 clothing garments including suits, jackets, shirts and hats and delivered them to the 16 World Cup venues around the U.S., Canada and Mexico in June.

Thanks in part to the World Cup contract, the company’s revenue has reached $15 million so far this year, compared with $20 million last year, Beig said. He declined to disclose the company’s net income but said the business was profitable.

“We are working with larger names that we would have never imagined we would,” he said. “The FIFA World Cup is the pinnacle. Working with the largest sporting event in the world is what we’re very proud of. I don’t think it gets any bigger than that.”

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Volunteers line up to prepare to display the Canadian Flag before a World Cup game.

Volunteers line up to prepare to display the Canadian flag before a World Cup round of 32 knock-out match between Canada and South Africa at SoFi Stadium on Sunday.

(Kelvin Kuo / Los Angeles Times)

Dioz is among the many small businesses across Los Angeles that are getting a boost from the global sporting event, said Kevin Klowden, a senior fellow at the Milken Institute.

The influx of hundreds of thousands of fans into the city has been a boon to hotels, transportation services and restaurants, in addition to those in the special events and logistics economy, Klowden said, calling the event the “equivalent of multiple Super Bowls.”

“The number of contracts that are there, it’s a big deal,” he said. “Given the fact that L.A.’s filming is only slowly recovering, having something like the World Cup is definitely a boost.”

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Dioz was co-founded by Johnny, 44, and his brother Tony in 2006. The brothers were born in India and raised in Australia, where Johnny enjoyed a brief career as a semi professional cricket player.

He realized his future wasn’t as a professional athlete, but he wanted to stay connected to the sports world, so he began making uniforms for his cricket team in 2006.

He then got a referral to make uniforms for multiple teams in the area before starting an apparel company.

“I wanted to stick with something I was passionate about, which is sports,” he said.

Volunteers unravel the center field display.

Volunteers unravel the center field display before a World Cup round of 32 knock-out match between Canada and South Africa at SoFi Stadium on Sunday.

(Ronaldo Bolanos / Los Angeles Times)

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In 2012, Beig moved to Los Angeles and established Dioz‘s Los Angeles headquarters to tap into the U.S. market. During the pandemic, the company started supplying medical apparel to hospitals and schools, and the business took off, with revenue doubling in 2020, Beig said.

Dioz now has over 150 employees, including 15 in L.A., and manufactures its apparel at factories in China, India, Bangladesh, Turkey and the Philippines. Tony runs an office in Dubai.

Before the World Cup, Dioz provided employee uniforms for events including Super Bowl LIX and Copa America, which may have given it a leg up on the FIFA contact.

Now, with a World Cup contract on their resume, Beig said he’s setting his sights on even bigger events.

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“This gives us an edge over the next FIFA events worldwide as well, where we can showcase our skills and we can handle it,” Beig said. “So it gives us a good opportunity to work with sporting events like the UEFA Championship and Premier League.”

As companies get new business from the World Cup, Klowden said it’s important that they leverage their new position to continue that growth.

Companies that benefited from the World Cup might be in a position to bid on even bigger contracts, especially with the Olympics coming up in 2028, Klowden said.

“The really important part in any of these deals is that if a company ran something like this, then they are able to build off of that success,” Klowden said. “Let’s say you’re a company that did a big uniform order or a big food order, and the World Cup goes, and you invested in new manufacturing capacity, or you invested in new clothing machines, or whatever you do; suddenly you don’t have that market anymore, then you’ve just wasted all that money ramping up.”

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