Oklahoma Attorney General Intervenes Against State Farm Over Roof Claim Denials

The Oklahoma Attorney General Gentner Drummond has filed a motion to intervene in a legal case against State Farm Fire and Casualty Company, alleging that the insurer intentionally limited roof-related insurance payouts by denying or reducing valid hail and wind damage claims. The intervention petition asserts that State Farm marketed policies as providing full replacement-cost coverage but internally predetermined claim outcomes to achieve corporate savings, rather than honoring policy commitments. This practice reportedly involved a program known as the "Hail Focus Initiative," which purportedly aimed to significantly reduce roof indemnity payments by applying extra-contractual standards not disclosed in policy language. Drummond highlights that Oklahomans face rising homeowners insurance premiums while receiving diminished claim fulfillment, undermining public trust in the insurance system and placing homeowners at financial risk. The petition accuses State Farm of violating multiple Oklahoma laws, including the Consumer Protection Act, the Racketeer Influenced and Corrupt Organizations Act, and the Deceptive Trade Practices Act. It also includes allegations of Civil Conspiracy and Unjust Enrichment. The motion seeks court-awarded penalties, damages, structural reforms, and recovery of profits obtained through the alleged scheme. This intervention follows a prior request for collaboration with the Oklahoma Insurance Department to address escalating homeowners insurance costs in the state. The case underscores broader concerns about regulatory compliance and fair claims handling practices within the homeowners insurance market, particularly regarding catastrophic weather-related claims. It also highlights state-level enforcement efforts to ensure insurers meet policyholder obligations amid market dynamics that include premium inflation and property risk exposures. Insurance professionals and regulators may find this development relevant for understanding enforcement trends, insurer behavior in setting reserves and claims outcomes, and the evolving legal landscape affecting homeowners insurance in Oklahoma. The litigation could also signal increased scrutiny of insurer claims practices in similar high-stakes property insurance markets across the U.S.