Illinois Attorney General files lawsuit against State Farm, alleges noncompliance

CHICAGO, Ill. (WCIA) — Illinois Attorney General Kwame Raoul has filed a lawsuit to force State Farm to comply with a regulatory examination, alleging that they have not done so.

On Tuesday, it was announced that Raoul filed a lawsuit on Oct. 10 against State Farm Fire and Casualty Insurance Company, State Farm Mutual Automobile Insurance Company, State Farm General Insurance Company and Oglesby Reinsurance Company (collectively, State Farm) alleging the insurance company has refused to comply with a regulatory examination into its nationwide homeowner’s insurance business.

This lawsuit was filed on behalf of Illinois Department of Insurance Director Ann Gillespie following an examination the department launched in 2024. In Nov. 2024, the IDOI opened an investigation into State Farm’s homeowners insurance policies and premiums.

Raoul said State Farm is the largest homeowners insurer in the country, and that its premiums have increased dramatically in recent years.

“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. “State insurance departments are the primary regulators of insurance companies, so it is crucially important that State Farm, headquartered in Illinois, cooperate with the department’s oversight of its business practices.”

State Farm is based in Bloomington, and Raoul said this gives the IDOI primary oversight nationwide. The department’s examination seeks zip-code level nationwide data about State Farm’s homeowners policies. This includes the total premiums collected by State Farm, the types of police coverage and insurance limits, and the number of claims against those policies.

Raoul is alleging that in violation of the Illinois Insurance Code, State Farm has refused to provide the data. On behalf of Gillespie, Raoul is asking the court to order the insurance company to comply with the examination and provide important details for assessing the challenges that plague the homeowners insurance market for Illinoisians and all Americans.

“The Department of Insurance works to protect consumers by regulating the insurance industry and fostering a competitive insurance marketplace,” Raoul’s office said in a press release. “The IDOI examines the business records of all insurance entities operating in Illinois, including those with headquarters located in Illinois.”

State Farm Spokesperson Gina Morss-Fischer provided WCIA the following statement regarding the lawsuit filed against them:

State Farm did not violate the law. This lawsuit is without merit and has nothing to do with Illinois customers or the cost of their insurance. 

State Farm has called Illinois home for more than a century, and our focus remains solely on helping our customers. More than 21,000 State Farm agents, agent team members, and State Farm employees proudly serve millions of customers in Illinois.

State Farm remains committed to collaborating with the Illinois Department of Insurance to benefit Illinois customers. 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.

Learn more: Understanding the Issues in Illinois on the State Farm Newsroom.
Gina Morss-Fischer, Spokesperson for State Farm