BLOG: Statement on Dept. of Insurance vs. State Farm conflict

May 11, 2026 

What’s happening right now between the Department of Insurance and State Farm is not helping California families. While the current Commissioner escalates this fight in the media, hundreds of policyholders are still waiting for full and fair settlements. And at the same time, we are putting at risk one of the largest insurers in the state—one that covers roughly 20 percent of California homeowners.

Here’s what I’ve learned after nearly 40 years in this industry: the goal of claims processing is simple, pay claims fairly and pay them quickly. The best claim is a closed claim. That’s how you serve customers, reduce stress, and avoid unnecessary legal battles.

We’re hearing talk about massive penalties and pushing one of the state’s largest insurers out of California for a year. That should concern every homeowner because whether people like it or not, when insurers leave the market, families lose.

You get fewer choices, higher prices, and more people pushed onto the FAIR Plan. That’s not stability. That’s the crisis we are living through. 

As Insurance Commissioner, my approach will be very different. I believe in bringing people to the table early, solving problems quickly, and keeping the focus on consumers — not headlines. And yes, insurance companies must follow the law. If claims are delayed or handled unfairly, there has to be accountability.

But you can protect consumers while also keeping a stable insurance market. In fact, you have to do both. That’s what experienced leadership looks like. I’ve worked with agents, carriers, executives, and policyholders my entire career. I know how this industry works, and I know how to get people to the table to solve problems related to insurance.

Because at the end of the day, the goal is simple: Get claims paid fairly. Get families back on their feet. And make California insurable so that consumers have options that work for them. 

I invite you to learn more about my plan to increase transparency through a Consumer Advocacy Hub and also encourage the availability of insurance products through a New Business Division at the Department of Insurance. I will fight for you in Sacramento—for more choice, lower prices, and a healthy insurance marketplace.

I’m Stacy Korsgaden, candidate for Insurance Commissioner, and I’d be honored to earn your vote before June 2.