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Oklahoma Insurance Commissioner Glen Mulready on Monday announced his agency has an ongoing investigation into roof claims, separate from a private lawsuit by homeowners alleging State Farm formed an illegal enterprise to avoid payouts.
The agency announcement comes less than a week after Oklahoma Attorney General Gentner Drummond filed a motion to intervene in a case against State Farm Fire and Casualty Company, alleging the company operated a coordinated program to decrease roof-related insurance payouts by denying or reducing valid hail and wind claims.
Mulready said the Oklahoma Insurance Department monitors the behavior of all insurance companies in the marketplace.
“Through our complaint system, which is really our finger on the pulse of what’s happening in the market, we can order a market conduct exam. We hire a third-party firm to go in and conduct the exam,” Mulready told The Oklahoman earlier this month. “If we think they are not abiding by the law, or they’re behaving improperly in some way, we will conduct an exam.”
Mulready said the investigations are confidential, but any action taken will become public information.
OID has been engaged in an investigation for the past two years regarding the handling of roof claims in the state. Mulready said these conduct exams take considerable time because they have to follow rigorous national guidelines to ensure a full and thorough investigation process.
“To our knowledge, we are the first insurance department in the country to take the unprecedented step of sending out third-party engineers to inspect the insurance adjusters’ work,” Mulready said in a statement Monday. “I recognize the importance of these roofing claims and the impact they have on consumers. I firmly believe it is too important to NOT take these extra steps to ensure Oklahomans are protected.”
OID expects to conclude the investigation in the first quarter of 2026.
Meanwhile, Drummond’s office alleges State Farm predetermined claim outcomes to meet corporate savings targets rather than honor policy promises. He said the company markets its policies as providing “full replacement-cost coverage.”
In the filing, Drummond alleges that State Farm implemented an internal program called the “Hail Focus Initiative” to drastically reduce roof indemnity payments in Oklahoma.
The accusations involve violations of the Oklahoma Consumer Protection Act, the Oklahoma Racketeer-Influence and Corrupt Organization Act and the Oklahoma Deceptive Trade Practices Act. It also accuses State Farm of civil conspiracy and unjust enrichment.
Mulready’s announcement and Drummond’s motion to intervene follows an Aug. 12 letter from Drummond to the OID, in which the Oklahoma Attorney General’s Office asked the agency to collaborate to fight rising homeowners insurance premiums in the state.
