We did it! Another win for insurer accountability.
The Los Angeles Times put survivors on the cover. Photo: Genaro Molina / Los Angeles Times.
May 5, 2026
Dear friends,
For 16 months, Eaton and Palisades fire survivors refused to be ignored.
We filed thousands of complaints.
We held press conferences.
We hand-wrote 1,500 postcards and sent tens of thousands of petition signatures to Commissioner Lara and Governor Newsom.
We gathered over 1,300 firsthand accounts of insurer misconduct and stood alongside Senator Sasha Renée Pérez and legislators from both fire zones.
None of this should have been necessary. The state had the authority to act all along.
Yesterday, the market conduct exam finally came out.
And friends: it is damning.
220 claims sampled.
398 violations of California law.
Delays. Underpayments. Denials with no factual basis. Survivors shuffled between a dozen adjusters. Refusal to authorize toxic smoke testing.
Everything survivors have been saying since January 2025 is now on record.
It made TV and front pages pages coast to coast.
The New York Times sardonically headlined its piece: "California Seeks 'Historic' Fine Against State Farm: Just $2 Million."
And the Los Angeles Times article put survivors on the cover.
That is what 16 months of showing up looks like.
This moment belongs to us.
But let's be honest.
This report is not just an indictment of State Farm. It's also an indictment of the California Department of Insurance itself.
State Farm did not act illegally in a vacuum. It did so for 16 months while the department had the authority, and the obligation, to stop it.
The LA Times documented that the CDI filed survivor complaints into a black box, closing cases before disputes were resolved, and even ordered survivors to stop calling their compliance officers. When a 32-year veteran compliance officer cited State Farm for "shoddy" and "shameful" conduct, a State Farm lawyer complained. And the department stripped her of her caseload and cut her pay.
That is not an agency protecting consumers.
That is an agency protecting the illegal actor it is supposed to police.
And while families were being delayed, denied, and worn down, something else was happening.
State Farm reported $6.2 billion in investment income in 2025.
Its investment portfolio grew by $30 billion in a single year. Roughly four times its total exposure to L.A. fire claims.
See it for yourself in State Farm's eye-popping 2025 Annual Report.
Our payouts are not missing. They are compounding, inside State Farm's $270 billion investment portfolio.
And the longer claims are delayed, the more that money earns.
At an estimated $2.47 million per hour in earnings, the $2 million fine amounts to less than one hour of profit.
Less than one hour. That's the math.
If you can earn billions by holding onto money that belongs to survivors, and the worst that happens is a sub-one-hour fine, the system is working.
Just not for the people paying for it.
Insiders tell me a license suspension is unlikely. And even if it happened, it would do nothing to get families paid.
My op-ed ran in the California Post alongside their big blaring headline:
In true California Post fashion, they wrote their own headline for my op-ed.
My headline:
"California finally agrees State Farm broke the law … but residents still haven't been paid."
Their headline:
"'Shameful' rap on Gav's watch."
That's the CA Post for you!
Governor Newsom Responds
With all the hubbub coast to coast, Governor Newsom responded late yesterday, warning insurers they "may be subject to state enforcement if they unlawfully delay or deny claims."
Better late than never. Thank you, Governor.
Now we need the state to act on the thousands of complaints we've filed, and get us real payouts.
As I wrote in the op-ed:
"This investigation is a real win. Next, we need the payouts we are owed, so we can finally go home."
Now: Close the Revolving Door
Many people have asked a simple question: why has regulation in California been so weak?
According to the Department of Angels, 70% of insured L.A. fire survivors report delays, denials, and underpayments that are actively undermining their recovery. This is systemic.
And then there's the part no one trusts.
When regulators leave office and go straight into jobs with the very companies they once oversaw, it raises a deeper concern. It creates the risk that public service is being shaped by private career prospects.
That's the revolving door. And it erodes confidence in the entire system.
This isn't just a California issue. What happens here sets the tone for the rest of the country. That's why national consumer advocacy groups have stepped in alongside us.
Former Insurance Commissioner Dave Jones, Public Citizen, Consumer Watchdog, and the Every Fire Survivor's Network are asking Ricardo Lara to commit to a five-year cooling-off period before taking any industry job.
Serve the public first. Then move on.
If you agree, add your name.
Deadline to sign: Friday, May 8
Webinar: Getting Every Property Tax Break You're Owed
With LA County Assessor Jeff Prang • Thursday, May 14 • 7–8pm • Free
Following our win securing a four-year property tax deferral, we're hosting a one-hour deep dive.
How do I lower my property taxes?
What does the deferral actually mean?
What happens if I move, rebuild bigger, or already paid?
Our webinars seat 1,000. All Eaton and Palisades survivors are welcome. Invite friends and networks.
Register free:
https://us06web.zoom.us/webinar/register/WN_xb6JPylUSLeDzJpiBRFYBg
Rally for Recovery: Please Sponsor!
Recovery doesn't end when the headlines fade. That's when it gets hardest.
EFSN's first annual fundraiser is a Pickleball Festival:
August 22 • iPickle Arcadia • 8am–2pm
We're inviting businesses and community leaders to stand with survivors as sponsors.
Your support keeps survivors connected to one another and to trusted resources, keeps attention on year-two recovery, and strengthens the systems people need to finally get home.
It also allows us to offer all of this to survivors, free, all year long.
Register and sponsor:
https://givebutter.com/rally-for-recovery
Vote: Your Insurance Commissioner Is on the Ballot
Ballots have arrived. This role will be exceptionally important to our recovery.
Many of you have asked who we're endorsing. As a fiscally-sponsored nonprofit operating under 501(c)(3) rules, EFSN does make political endorsements. But the LA Times has a helpful voter guide to all the candidates.
latimes.com — Insurance Commissioner voter guide
This week, I co-hosted a debate among four candidates on the Three Homeless Guys podcast (Allen, Wolff, Farren, Lee). I came away feeling genuinely hopeful. We have some truly thoughtful, experienced candidates on the ballot.
This was my fourth time co-hosting THG, which I consider a true badge of honor. I am hoping next time I will get a jacket, or a hat!
Spotify — Insurance Commissioner debate, Three Homeless Guys
Pulitzer Prize: SF Chronicle on L.A. Fire Survivors' Insurance Nightmare
Huge congratulations to Susie Neilson and Megan Fan Munce of the San Francisco Chronicle for winning the Pulitzer for their reporting on the insurance crisis facing L.A. fire survivors.
From the beginning, Megan and Susie were inside the EFSN Discord, listening and documenting what's really happening. Many of you shared your stories.
What they uncovered confirms what survivors have been saying all along. At some companies, delays, denials, and underpayments are not glitches in the system. They are the system.
Their reporting lays out exactly how these tactics work and why so many families are being devastated, even after doing everything right.
We are so proud of you, Megan and Susie. And deeply grateful.
Read and bookmark their work:
Hidden Rules: How California insurers undercut wildfire claims
Around the Community
FEMA Clinic • Friday May 8
FEMA deadline is July 9. Free legal help from Neighborhood Legal Services for denied assistance, pending appeals, or housing instability. 9–10am Press Conference, 10am–12pm Clinic. The Collaboratory, 560 W. Woodbury Road, Altadena.
Dena Rise Up Sacramento Trip • May 18–19
Dena Rise Up is organizing an expenses-paid bus and overnight trip to advocate for Altadena with legislators.
In Memoriam: Larry Vein
We are terribly saddened by the death by suicide of Larry Vein, founder of Pali Strong. From the fire's first hours, Larry comforted survivors, and filled information voids with daily updates. A Celebration of Life will be held Wednesday, May 6 at 10am at the Palisades Recreation Center, 851 Alma Real Drive, Pacific Palisades. All are welcome.
latimes.com — Larry Vein obituary
Research shows wildfire survivors are much more likely to experience depression, anxiety, and suicidal ideation, with mental health impacts peaking around Year Two. If you or someone you know is struggling, please call or text 988 anytime.
Yesterday marked a real milestone. After 16 long months, the state finally acknowledged the scale of illegal conduct survivors have faced in our recovery.
This happened because we kept showing up. Across Los Angeles, survivors came together and proved something powerful: we are stronger together.
This moment shows what's possible when we turn shared strength into systems that work.
The work isn't easy. But it's necessary if we want a world where every family has a real shot at getting home.
That's a vision worth fighting for. I'm grateful to be in this fight with you.
Love,
Joy
The Every Fire Survivor's Network (EFSN) connects 10,000+ fire survivors and allies across Eaton, Palisades, Malibu, and Topanga. Together, we remove barriers and help families get home. Join us: efsurvivors.net
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