California sues to take State Farm’s license away and seeks record penalties

The Disaster Recovery Reform Act (SB 876, Padilla) would require insurers to maintain disaster recovery plans, double penalties during declared emergencies, mandate restitution to policyholders, and address the kind of adjuster reassignment delays documented in the State Farm examination. The Smoke Damage Recovery Act (AB 1795, Gipson) would establish California’s first enforceable public health and insurance standards for smoke-damaged homes, including science-based testing and restoration requirements — a direct response to the wave of smoke-damage complaints that dominated the post-fire claims landscape.