California: State Farm Violated Law in Handling of L.A. Fire Insurance Claims
Levi Sumagaysay / Tuesday, May 5 @ 7 a.m. / Sacramento
This story was originally published by CalMatters. Sign up for their newsletters.
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State Farm could face millions of dollars in penalties and a possible temporary suspension of its license in California as a result of hundreds of alleged law violations related to its handling of claims from the Los Angeles County fires last year.
California’s largest individual property insurance provider “showed a troubling pattern of claims handling practices” after the fires, the state’s Insurance Department said Monday. The department is seeking a hearing into the matter, which comes after an investigation it opened into State Farm’s conduct last June.
“Our investigation found that State Farm delayed, underpaid, and buried policyholders in red tape at the worst moment of their lives,” said Ricardo Lara, the state’s insurance commissioner, in a statement.
State Farm did not immediately respond to CalMatters’ questions about the department’s legal action.
If an administrative law judge finds that the 430 claims have merit, each violation is subject to up to a $5,000 penalty. Willful violations of the law are subject to penalties of up to $10,000 each. That means the company could owe up to $4.3 million. Insurers have paid billions of dollars in claims from the deadly L.A.-area fires, with State Farm saying it has paid more than $5.7 billion so far.
The insurance department opened an investigation into State Farm, which insures about a fifth of California property owners, last year after complaints from fire survivors about the company delaying and denying claims.
The investigation, involving 220 claims related to the fires, found violations in 52% of them, according to the accusation filed by the department Monday. They included slow and inadequate claims investigations, underpayment, multiple claims adjusters assigned and delayed communication with policyholders. In some cases, the department asked State Farm to reopen claims and correct its violations, according to the accusation.
After a hearing, which has yet to be scheduled, any ruling by the administrative law judge will be reviewed by the commissioner. The commissioner will impose penalties and decide on whether to suspend for one year the company’s certificate of authority, which is what gives it the right to sell insurance in the state.
It’s unclear what would happen to State Farm’s customers if the company were to be suspended for a year, said Michael Soller, spokesperson for the insurance department, which has been trying to ensure that insurance companies continue to offer insurance coverage in California.
“Between the scope of the fires and the scope of this company, we’re in pretty unprecedented territory,” Soller said.
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OBITUARY: Jean Elaine George, 1943-2026
LoCO Staff / Tuesday, May 5 @ 6:56 a.m. / Obits
Jean Elaine George passed away peacefully in her sleep on Friday, May 1, 2026, surrounded in her final days by the love, laughter, and cherished memories of her family and friends.
Born in Liverpool, England, Jean began her journey with a spirit of resilience and adventure. At the age of six, she immigrated to the United States, where she would go on to build a full and meaningful life rooted in family, connection, and care for others.
Jean met the love of her life, Lonzo, while he was serving in the United States Air Force. Together, they embarked on a life of travel and shared experiences, exploring the world side by side before ultimately settling in Hydesville in 1979. There, they planted lasting roots and created a home filled with warmth, hospitality and enduring love.
She is survived by her beloved children: daughters Christina and Denise, and her twin sons, Alonzo and William as well as her many grandchildren and great-grandchildren, all of whom were a constant source of pride and joy in her life . Her legacy lives on through them and through the countless lives she touched with her kindness, strength and unwavering devotion to her family.
Jean will be remembered for her spirit, her deep love for those around her, and the joy she found in life’s simple, meaningful moments. Her memory will continue to be a source of strength and inspiration.
No celebrations or services will be held per her final wishes. She will be deeply missed and forever loved.
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The obituary above was submitted on behalf of Jean George’s family. The Lost Coast Outpost runs obituaries of Humboldt County residents at no charge. See guidelines here. Email news@lostcoastoutpost.com.
Fortuna to Consider Converting its Depot Museum Into a Standalone Nonprofit
Dezmond Remington / Monday, May 4 @ 3:58 p.m. / Local Government
The Depot Museum. Photo from the city of Fortuna.
PREVIOUSLY
- Faced with Painful Budget Cuts, Fortuna Debates Selling the River Lodge and Closing the Depot Museum
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Fortuna’s Depot Museum may yet live on.
The city of Fortuna has been forced to deal with an unforgiving, slim budget this year, and figuring out ways to compensate hasn’t been easy. Selling the River Lodge was on the table, as was closing Fortuna’s Depot Museum for a large chunk of the year. Currently open year-round, it costs about $30,000 annually to run. Most of that goes towards a part-time curator position. At a budget meeting last week, the finance department suggested closing it from October to April every year, or even shutting it down altogether.
An alternative solution — converting the museum into a nonprofit organization and funding it through donations and memberships — is in the works. Fortuna’s city council will decide at a meeting tonight if they’re going to make the change.
Here’s how it would work, according to the staff report: “interested community members” would create a 501(c)(3) organization, and the city would transfer ownership of the museum’s collection. Then, Fortuna would lease the building to the new nonprofit, and they’d be in charge of running it and keeping it funded. The museum would run on $22,000 of accumulated donations during the transition. There’s no word yet on who those community members would be, or who would be in charge of staffing the museum.
The move was inspired by Ferndale’s museum, which is also a publicly funded nonprofit. In 2024, it earned more than $50,000 in donations.
It’s probably not a perfect solution, the museum’s curator, Alexandra Service, told the Outpost today. If it became a private organization, the public wouldn’t have any control or oversight into its operations. The city also made a commitment to the people who donated artifacts, Service said, that they would preserve them and keep them safe; giving them to a new entity might leave it unfulfilled. Service suggested that an organization dedicated to fundraising be created to bolster the museum instead. The city would continue to operate it, but the funding would still be community-generated.
It fills an important purpose in Fortuna’s civic fabric, Service said. Since it opened in 1976 (part of the nationwide bicentennial celebrations), Fortunans have woven it into their lives. One grandmother, who has been coming to the museum since she was a kid, brings her grandchildren in; kids come in after school, or even sometimes drag their parents in. It seems particularly ironic that the city has to consider shutting it down 50 years after it opened, right before the country is to celebrate its 250th anniversary.
“It has, I think, a deep, personal connection to a great many people in this community, and it would be a great loss if it were not available for people to continue those connections,” Service said. “…You don’t want to have to deal with losing a job. But, I think the idea of what the community would lose with the museum being gone is a lot bigger, and a lot more important.”
The budget meeting will be held at 4:30 this afternoon in the council chambers at 621 11th Street.
‘Why Did I Do That?’ Upcoming Eureka Mental Health Seminar to Talk Brain Science in Approachable Way
Sage Alexander / Monday, May 4 @ 1:56 p.m. / Mental Health
The educational seminar will be held at the Wharfinger Building Saturday. Photo: Sage Alexander
Amid Mental Health Awareness Month, a keynote speaker this weekend aims to help Eurekans answer the question, “Wait. Why did I do that?” by delving into how the brain responds to trauma, stress and everyday problems.
The town hall will feature speaker Rick Griffin, founder and CEO of the Neuro Leadership Academy. He’ll talk about how brain chemistry influences reactions, like why one may respond to situations in survival mode.
Jacob Rosen, managing mental health clinician for Eureka’s CARE program, said understanding how the brain works is “critical,” when working with the local crisis program’s clients. Exploring why their behavior is happening is a very effective intervention, he told the Outpost.
“Dispelling a lot of the unknown, or the sense of the unknown, can help with a lot of the fear or apprehension that comes with mental health. But also, what we know from research, is that being more mindful in our day-to-day life is beneficial to our mental health, and the first step to mindfulness is just being aware,” he said.
The event will take place on Saturday May 9 from 10 a.m. to 1 p.m. at Eureka’s Wharfinger building, 1 Marina Way.
It’s the seventh town hall in Eureka Mayor Kim Bergel’s initiative on mental health, a collaboration with CARE. The seminar kicks off the awareness month that aims to cut stigma for people with mental illnesses. According to the National Alliance on Mental Illness (NAMI), about one in five of U.S. adults experiences mental illness.
City officials heard Griffin speak at a conference for crisis intervention teams and liked his style. Bergel said she asked herself, “How can I bring this back to our community?”
She hopes people can take home concepts from Griffin, who she said spoke in terms that were very engaging and understandable. She pointed out this topic is something “everybody can identify with,” and found herself relating to some topics in the seminar.
The training program aims to teach concepts from neuroscience and help people learn strategies on well-being and functioning. “I’m hopeful that people leave with some tools,” said Bergel.
The educational event is free, and there will be food. Local organizations will be tabling at the event, including those offering services for mental health care, substance use recovery and homelessness.
If a rally or barbecue is more your speed, other mental health events are scheduled this month in Eureka. See the calendar for mental health matters at this link.
Eureka Police Cited 10 People Last Month for Driving While Using Their Hands to Operate Cell Phones
LoCO Staff / Monday, May 4 @ 12:43 p.m. / Crime
Image via Pexels.
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Press release from the Eureka Police Department:
Ten drivers were cited for hands-free cell phone violations during a distracted driving enforcement operation in the month of April.
“Despite repeated efforts to warn drivers about the hands-free cell phone law, some drivers continue to use their phones while operating a vehicle,” Eureka Police Department’s Admin Patrol Sergeant Omey said. “Our ultimate goal is to change behaviors that help make our roads safer.”
California has had distracted driving laws on the books since 2008. Under current law, drivers are not allowed to hold their phone or other electronic device while driving. This includes talking, texting, or using an app.
Using a handheld cell phone while driving is punishable by a fine. Violating the hands-free law for a second time within 36 months of a prior conviction for the same offense will result in a point being added to a driver’s record.
If you have an important phone call or need to program directions, pull over to a safe parking spot. Before driving, either silence your phone or put it somewhere you can’t reach.
Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration.
Hoopa Man Arrested for Murder After Fatally Stabbing His Uncle, Sheriff’s Office Says
LoCO Staff / Monday, May 4 @ 10:54 a.m. / Crime
Press release from the Humboldt County Sheriff’s Office:
On May 2, 2026, at approximately 5:01 a.m., the Humboldt County Sheriff’s Office Emergency Communications Center received a report of a stabbing in the 2700 block of Pine Creek Road in Hoopa.
While deputies were en route, dispatch advised that the reporting party stated he had been physically attacked by his uncle, and in response a stabbing occurred. Deputies arrived on scene and contacted the reporting party, identified as 31-year-old Travis Watson, outside the residence.
Additional responding deputies located a male victim inside the residence and immediately began life-saving measures until emergency medical personnel arrived. Despite these efforts, the victim succumbed to his injuries at the scene and was pronounced deceased by paramedics.
Humboldt County Sheriff’s Office Major Crimes investigators responded and assumed the investigation. Based on the investigation, including statements and physical evidence collected at the scene, Watson was arrested for PC 187(a) – Murder and was booked into the Humboldt County Correctional Facility.
The decedent has been identified by the Humboldt County Coroner’s Office as 34-year-old James Luther Vernon Williams, and his next of kin have been notified.
This case remains an active investigation, and no additional information will be released at this time.
Anyone with information about this case or related criminal activity is encouraged to contact the Humboldt County Sheriff’s Office at (707) 445-7251 or the Sheriff’s Office Crime Tip Line at (707) 268-2539.
(VIDEO) Humboldt Bay Coast Guard Medevacs ‘Ailing’ Passenger From Cruise Ship Near Shelter Cove
LoCO Staff / Monday, May 4 @ 10:45 a.m. / Emergencies
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Press release from the U.S. Coast Guard Southwest District:
HUMBOLDT BAY, Calif. — The Coast Guard medevaced an ailing cruise ship passenger 45 miles southwest of Shelter Cove, Saturday.
A Coast Guard Air Station Humboldt Bay MH-65 Dolphin helicopter aircrew hoisted a 45-year-old man and transported him to St. Joseph Hospital in Eureka. The man was reported to be in unstable condition.
Watchstanders at Coast Guard Sector Humboldt Bay received a notification at 8:47 a.m. Saturday from a crew member aboard the cruise ship Queen Elizabeth requesting a medevac for a passenger experiencing a serious medical condition.
After conferring with a duty flight surgeon, who recommended a medevac, watchstanders launched the aircrew and maintained regular communication with the vessel’s crew to monitor the patient’s status until the Coast Guard aircrew departed safely with the patient.