California Department of Insurance Commissioner Ricardo Lara on Thursday, June 12, announced an investigation into State Farm over the insurer’s handling of thousands of claims made by survivors of the Eaton and Palisades fires.

Just over five months since the fires devastated Southern California communities, the Department of Insurance said it had initiated a market conduct examination of State Farm, expanding an ongoing investigation into consumer complaints against the company.

“This examination will assess whether State Farm has complied with California’s consumer protection and claims handling laws and will help determine if further reforms are needed as natural disasters increasingly disrupt insurance markets across the country,” Lara said in a statement.

Complaints against State Farm or other insurers can be submitted online or by calling 800-927-HELP.

“The strongest evidence we can present is the voice of consumers themselves,” Lara said. “I urge any wildfire survivor facing delayed payments, claim disputes, multiple adjusters, smoke damage issues, or any other problems to file a formal complaint with my department.”

Lara said patterns that will be investigated include the frequent reassignment of multiple adjusters with little continuity in communication, inconsistent management of similar claims and inadequate record keeping or information sharing among claims teams.

According to the department, it has recovered more than $40 million for wildfire survivors through intervention on formal consumer complaints. As of May 12, insurance companies have paid out nearly $17 billion to residential and commercial policyholders in both fire areas.

“I have received numerous complaints from neighbors regarding the claims process,” Assemblymember John Harabedian said in a statement. “A market conduct examination will provide the clarity we urgently need.”

Harabedian’s office said it would be monitoring the investigation as it move forward.

Last month, Lara’s office approved a 17% emergency rate hike for State Farm after it made an emergency request. The new rates took effect June 1 with renters and condo owners seeing a 15% increase and rental dwelling owners a 38% increase.

Insurance claims have been part of the debris removal process, specifically for business owners who are not automatically eligible to be included in the U.S. Army Corps of Engineers debris removal mission.

The Army Corps said that businesses should work through their insurance company first to cover debris clearance. If a business can’t handle it on their own they can request inclusion through Los Angeles County based on multiple factors including insurance coverage or status of a claim.

Another concern, according to the Department of Insurance, is the handling of smoke damage claims by State Farm and other providers. Last month Lara announced the launch of a Smoke Claims & Remediation Task Force.

“Californians deserve to return to homes that are truly safe, not forced to handle smoke, soot, and ash on their own,” Lara said. “Our goal is to close the protection gap and make sure insurance works the way it is supposed to, especially in the face of climate-intensified disasters.”