State Farm Can’t Shake Lawsuit Accusing it of Charging Inflated Premiums During Pandemic

SAN FRANCISCO — A California federal judge has refused to dismiss a lawsuit in which a coffee shop accuses State Farm Fire & Casualty Co. of charging inflated property and casualty insurance premiums during the COVID-19 pandemic when many businesses were either closed or operating with reduced hours and employees.

In an Oct. 5 order, Judge William H. Orrick of the U.S. District Court for the Northern District of California rejected State Farm’s exclusive jurisdiction argument because the plaintiff is not challenging the insurer’s rates as approved by the state insurance commissioner; rather, it is challenging State Farm’s misapplication of …