California Department of Insurance issues enforcement actions against Tesla

The California Department of Insurance on Friday issued enforcement actions against Tesla (TSLA) Insurance Services, Inc. and Tesla Insurance Company, plus State National Insurance Company, in order to protect consumers after the companies repeatedly failed in their legal obligations to adequately handle hundreds of California automobile policyholder claims. Tesla Insurance Services, Inc. is an appointed agent for State National, an admitted insurer in California. The actions allege that, despite being repeatedly warned by the Department of Insurance, the Tesla Companies and State National instead chose to abandon their responsibility to consumers and persist with their non-compliant claims-handling practices, placing profits above people and flouting the law with impunity. The companies face monetary penalties up to $5,000 for each unlawful, unfair, or deceptive act, or up to $10,000 for each such act determined to be willful.