Oklahoma AG Battles State Farm Over Roof Damage Claims Practices

In December 2025, Oklahoma's insurance industry witnessed a significant development when Attorney General Gentner Drummond was permitted by the court to join a legal battle against State Farm Fire and Casualty Company. This case, presided over by Judge Amy Palumbo in Oklahoma County District Court, alleges that the insurer engaged in systematic practices to limit payouts for roof-related claims due to hail and wind damage. The court's decision followed State Farm's unsuccessful attempts to exclude Drummond from the proceedings.

Drummond welcomed the court's decision, highlighting the importance of safeguarding the interests of Oklahoma's insurance consumers. He stressed the state's duty to intervene when consumer interests are potentially compromised. The Attorney General's office contends that State Farm promoted its policies as providing complete roof replacement cost coverage, yet allegedly manipulated the claims process to meet corporate financial objectives, rather than its policy commitments.

The Attorney General seeks penalties, damages, and structural changes within the company, along with restitution of any profits State Farm may have obtained through these allegations. Drummond underscored concerns that such practices could erode public trust in the insurance industry, increasing vulnerabilities for Oklahoma homeowners. This intervention aligns with Drummond's ongoing efforts in addressing insurance premium issues, as reflected in past communications with the Oklahoma Insurance Commissioner, Glen Mulready. The case will continue to explore these claims, examining implications for market conduct and regulatory compliance within the insurance sector.