Consumer complaints by policyholders following the Los Angeles wildfires are something that came up yesterday while meeting with various public adjusters in Sacramento. I then posed the question of whether public adjusters should file insurance complaints for their policyholder clients.

The responses by the public adjusters were mixed. I thought, and one public adjuster even mentioned, that such an act is a last-ditch effort because it will certainly indicate that the “professional” representation is failing. Yet, shouldn’t there be an official record of the wrongful claims practice?

I also asked whether the Department of Insurance would respond more favorably to a policyholder making the complaint than the public adjuster.  I have no official statistics, but public adjusters in other states have told me that their attempts to file complaints with insurance regulators only fill the wastebasket of the regulator.

Wildfire policyholders in Los Angeles who are facing issues with their insurance claims have the right to file a complaint with the California Department of Insurance (CDI). If an insurer delays processing, wrongfully denies a claim, or offers an unfair settlement, policyholders can seek intervention from the CDI, which regulates insurance practices in the state. Filing a complaint can prompt the agency to review the insurer’s actions and help ensure that claims are handled fairly and in accordance with California law.

To initiate a complaint, wildfire victims should first gather relevant documents, including their insurance policy, claim number, denial letters, and any correspondence with the insurer. Complaints can easily be submitted online through the CDI’s Consumer Complaint Center, which provides a structured process for reporting claim disputes. Alternatively, policyholders can mail a completed Request for Assistance form to CDI’s Consumer Services Division in Los Angeles. Those needing immediate guidance can also call CDI’s consumer hotline for assistance from a representative who can help navigate the process.

Policyholders should be prepared to provide additional documentation if requested. While CDI does not act as a legal representative, its involvement can put pressure on insurers to comply with regulations and expedite fair claim resolutions. If an insurer is found to have violated state laws, further regulatory actions may be taken.

Here is the link with all the information and methods to complete a complaint: https://www.insurance.ca.gov/01-consumers/101-help/index.cfm

My personal suggestion is that public adjusters should consider having their policyholder clients file complaints with relevant departments of insurance. I have been in meetings with insurance regulators complaining about various practices, and the regulator tells me that nobody has filed a complaint on the issue despite my knowing that public adjusters had been complaining about a particular practice. The repeated complaints about the same issue can give rise to a market conduct study as well as regulatory action, which may help with future claims and possibly the matter at hand.

Thought For The Day

“Our lives begin to end the day we become silent about things that matter.”
—Martin Luther King Jr.