
California Insurance Commissioner Ricardo Lara and Los Angeles County District Attorney Nathan Hochman have announced a joint effort to combat insurance fraud targeting wildfire survivors. The initiative, building on the Department’s record of fighting fraud, combines consumer education with enhanced prosecution to protect vulnerable disaster victims from fraudulent schemes.
“Scammers exploit vulnerable times, preying on survivors with false promises and fraudulent schemes,” said Commissioner Lara. “We’ve seen this in past wildfires. By partnering with the Los Angeles County District Attorney’s Office, we’re amplifying protections for wildfire victims and empowering consumers to protect themselves. My Department is committed to guiding you with resources to make informed decisions and avoid scams.”
Hochman was similarly aggressive.
“Our Office’s fraud-fighting prosecutors have a message for scammers: You will not get away with impersonating insurance companies in order to steal from wildfire victims in Los Angeles County,” said Los Angeles County District Attorney Nathan Hochman. “Our Office is on high alert for insurance scams and we will relentlessly pursue and seek the maximum punishment for the criminals who seek to exploit the victims of the LA County fires. I would like to thank Commissioner Ricardo Lara for his partnership in standing up for LA County fire victims during this ongoing disaster and as we prepare for recovery. Insurance fraud will not be tolerated under any circumstances.”
The Department of Insurance deployed its Disaster Assistance Response Team to affected areas to educate residents about their rights, conduct educational outreach, and verify contractor licenses.
The team works alongside the Contractors State License Board and other agencies to ensure compliance with state regulations, including a mandatory seven-day waiting period before public adjusters can solicit business in disaster zones.
To address common scams, Commissioner Lara issued a Notice reminding public adjusters to adhere to strict laws governing their conduct. Survivors should carefully review adjuster contracts and understand fees, which typically constitute a percentage of the insurance claim. The Department has previously prosecuted fraud cases, including one where an individual falsely posed as legal counsel, filed fraudulent smoke and ash claims, and pocketed settlement checks.
Since 2019, the Department of Insurance has distributed over $550 million to District attorneys statewide for fraud investigations and prosecutions, with $116 million allocated to Los Angeles County. The current fiscal year includes $14.5 million in funding. Penalties for fraud include fines and potential jail or prison time.
To support recovery efforts, Commissioner Lara announced free two-day insurance support workshops in Santa Monica (January 18-19) and Pasadena (January 25-26). These sessions will help survivors understand their insurance policies, navigate claims processes, and connect with rebuilding resources. The workshops are open to all those impacted by the recent wildfires. Residents can schedule one-on-one consultations by calling 800-927-4357.
The Department strongly encourages consumers to verify public adjuster licenses and contractor credentials through their website or by calling 800-927-4357. Consumers can report suspected fraud or file complaints through the same channels. Additional resources for avoiding post-disaster scams are available on the Department’s website.