Illinois Attorney General Kwame Raoul has filed a lawsuit against State Farm, alleging the insurance company failed to comply with a regulatory examination into its nationwide homeowner insurance business.
The lawsuit, filed on behalf of Illinois Department of Insurance (IDOI) Director Ann Gillespie, claims that the Bloomington-based insurer did not provide requested information during the review. State Farm, headquartered in Bloomington and the largest employer in McLean County, said the lawsuit is without merit and “has nothing to do with Illinois customers or the cost of their insurance.”
Raoul’s office says IDOI sought zip-code level data across the U.S., including premiums collected, types of coverage, policy limits, and the number of claims. Raoul alleges that by refusing to provide this information, State Farm violated the Illinois insurance code.
“State Farm’s obstruction does not just violate the law. It prevents the Department of Insurance from ensuring all Illinois homeowners are 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.”
IDOI began its investigation in November 2024, reviewing State Farm’s homeowner policies and premiums after claims of drastic premium increases in recent years. Raoul is asking the court to require State Farm to comply and provide the information needed to assess the Illinois homeowner insurance market.
The IDOI regulates the insurance industry, promotes competitive markets, and examines all insurers’ business records, but it does not have authority over insurance rates. Governor JB Pritzker has urged lawmakers to grant the state that power.
State Farm, the largest homeowner insurance provider in the U.S., said it remains committed to working with IDOI. “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 spokesperson Gina Morss-Fischer.
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