The settlement directs a minimum of $35 million toward making affected policyholders whole, $10 million to the state's Strengthen Oklahoma Homes grant program, and $2.86 million in fines and examination expenses payable to the department.

The examination of State Farm Fire and Casualty Company determined that the company wrongly denied or underpaid claims submitted by Oklahoma homeowners who had bought policies covering their homes. In an unusual step, the department sent independent engineers into the field to inspect roofs and assess whether claims had been handled appropriately.

"Our responsibility is to stand up for Oklahoma consumers, and that means holding insurance companies accountable when they fail to meet their obligations to policyholders," Insurance Commissioner Glen Mulready said. "We weren't willing to simply take State Farm's word for how these claims were handled."

Under the agreement, State Farm will set up a claims reopening process at its own expense for eligible homeowners whose wind and hail claims with dates of loss between Jan. 1, 2021, and Dec. 31, 2025, were closed without payment. That includes claims that received only partial payment or were determined to fall under the deductible.

An independent third-party administrator will review each eligible claim. If the administrator finds a claim qualifies for payment, State Farm will pay it according to the homeowner's individual policy. If more money is needed to cover all qualifying claims, the department and the company will agree on an additional amount.

State Farm will send written notices, approved by the department, to eligible homeowners explaining the review process and how to opt in.

"I cannot stress enough how important it is for eligible homeowners to take advantage of this opportunity and opt in," Mulready said. "If your roof claim was closed without payment during this period, don't assume the decision was the final word."

The $10 million contribution will go to the Strengthen Oklahoma Homes grant program, which helps eligible homeowners install fortified roofs designed to better withstand severe weather.

State Farm disputed the examination's conclusions. In a statement, the company said it evaluates each claim based on the facts of the loss and the customer's policy, and that it has responded to more than 100,000 claims in Oklahoma over the past five years. The insurer said a limited review of individual claims should not be mistaken for a complete picture of its overall claims-handling practices.

The company also said it remained committed to Oklahoma while other insurers reduced coverage or left the state, despite more than $178.5 million in net underwriting losses from 2021 through 2025 and more than half a billion dollars over the past 20 years. State Farm described the settlement as providing a path forward for customers, including the claims review program and the contribution to the Strengthen Oklahoma Homes program.

The settlement comes as Oklahoma's insurance market faces pressure from severe weather, rising repair costs and affordability concerns — issues the company acknowledged in its statement. For homeowners, the outcome offers a rare second look at claims that were previously closed without payment, though participation depends on eligible policyholders opting in once they receive notice.