Illinois Attorney General Kwame Raoul has filed a lawsuit against State Farm alleging the insurance giant has not complied with a regulatory examination.

The lawsuit, filed on behalf of Illinois Department of Insurance [IDOI] Director Ann Gillespie, alleges the Bloomington-based company did not comply during an examination into its nationwide homeowner’s insurance business.

State Farm said the lawsuit is without merit and “has nothing to do with Illinois customers or the cost of their insurance.”

Raoul’s office said IDOI is seeking zip-code level nationwide data about State Farm’s policies, including premiums collected, the types of policy coverage and insurance limits, and the number of claims against the policy.

Raoul charges State Farm violated the Illinois insurance code by refusing to provide the data.

“State Farm’s obstruction does not just violate the law. It prevents the Department of Insurance from obtaining information to help make sure all Illinois homeowners are being treated fairly,” Raoul said in a news release. “State insurance departments are the primary regulators of insurance companies, so it is crucially important that State Farm, headquartered in Illinois, cooperate with the department’s oversight of its business practices.”

IDOI said it opened the investigation into State Farm in November of 2024 to look at its homeowner insurance policies and premiums after claims by the state that the company’s premiums have risen ”drastically” in recent years.

Raoul has asked the court to order State Farm to comply with the examination and provide other information to allow IDOI to assess the homeowner insurance market.

IDOI works to regulate the insurance industry and foster a competitive insurance marketplace, and examines the business records of all insurance entities in the state.

The state of Illinois does not have the power to regulate insurance rates. Gov. JB Pritzker has called for Illinois lawmakers to give the state that authority.

State Farm is the largest homeowner insurance company in the country.

In a statement, State Farm said the company remains committed to collaborating with the Illinois Department of Insurance to benefit Illinois customers.

“We value our partnerships with state leaders and continue to work together toward finding solutions that allow us to best serve customers and promote a healthy and competitive insurance market,” said spokesperson Gina Morss-Fischer.