1. California's Department of Insurance has accused Tesla and its partner, State National Insurance Company, of routinely delaying or denying customer claims and engaging in unfair practices, causing financial harm to policyholders.
2. The companies could face penalties up to $10,000 per willful act and have 15 days to respond to the enforcement action. This legal issue may also impact a pending class-action lawsuit against Tesla over claim payouts.
3. Since the initial warnings from the state regulator in 2022, complaints, violations, and delays in handling claims by Tesla have increased significantly, according to the Department of Insurance's filings. The regulator has identified nearly 3,000 violations of state insurance law since 2022, mainly due to Tesla's failure to respond to customers within the mandatory 15-day period.