Illinois Attorney General Kwame Raoul has filed a lawsuit against State Farm, alleging that the company has not complied with a regulatory examination by the Illinois Department of Insurance (IDOI).
The lawsuit, filed on behalf of IDOI Director Ann Gillespie, claims the Bloomington-based insurer failed to comply during an examination of its nationwide homeowner’s insurance business. State Farm, headquartered in Bloomington and McLean County’s largest employer, is the largest homeowner insurance company in the United States.
Details of the Examination
According to Raoul’s office, the IDOI is seeking zip-code-level data from State Farm on a national scale. The requested information includes details about policies, premiums collected, coverage types and limits, and the number of claims filed. The Attorney General alleges that State Farm violated the Illinois insurance code by refusing to provide the requested data.
“State Farm’s obstruction does not just violate the law. It prevents the Department of Insurance from obtaining information to help make sure all Illinois homeowners are being treated fairly,” Raoul said in a news release. He added that state insurance departments serve as primary regulators of insurance companies and that cooperation from insurers is vital for oversight.
Background of the Investigation
The IDOI launched its investigation into State Farm in November 2024 to examine the company’s homeowner insurance policies and premiums. The department initiated the inquiry after claims that State Farm’s premiums had increased “drastically” in recent years.
Raoul’s lawsuit asks the court to compel State Farm to comply with the examination and provide the data necessary for IDOI to assess the homeowner insurance market.
IDOI’s responsibilities include regulating the insurance industry, fostering a competitive insurance marketplace, and examining the business records of insurance entities operating in the state.
State Farm’s Response
In a statement, State Farm described the lawsuit as “without merit” and said it “has nothing to do with Illinois customers or the cost of their insurance.”
“We value our partnerships with state leaders and continue to work together toward finding solutions that allow us to best serve customers and promote a healthy and competitive insurance market,” said company spokesperson Gina Morss-Fischer.
Broader Context
Illinois does not currently have the authority to regulate insurance rates. Gov. JB Pritzker has called for lawmakers to grant the state that power.
Raoul’s lawsuit seeks to enforce compliance from State Farm as part of IDOI’s broader oversight role in monitoring insurance practices within the state.
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