Authorities in Texas are investigating State Farm’s claims-handling following 2008’s Hurricane Ike, and at least one legislator is asking the state insurance department to look into the matter as well.

According to state officials, the Travis County District Attorney’s Office for several months has been collecting information related to claim denials by State Farm Lloyd’s—the insurer’s unit in Texas—following Ike.

Allegations of claims mishandling has led to hundreds of lawsuits against the insurer, the state’s largest writer of homeowners’ coverage. Some lawsuits have been settled but others remain outstanding, including a multimillion dollar class-action lawsuit against State Farm that alleges fraud in adjusting primarily roof claims after the hurricane four years ago. 

State Farm spokesman Phil Supple says the insurer “strongly disputes” the accusations and is working with authorities in their investigation.

“We are proud of our response to Hurricane Ike,” continues an emailed statement from Supple. “To date, we have paid more than $1.5 billion—much of which went to repair or replace roofs.”

State Sen. Rodney Ellis has asked the Texas Department of Insurance to once again look into the allegations and work with the Travis County District Attorney’s office. In a letter to Insurance Commissioner Eleanor Kitzman, Ellis refers to a letter he wrote to her a year ago regarding “serious concerns” related to State Farm’s “handling of Ike claims concerning roof shingles that were lifted or unsealed as a result of hurricane-force winds.”

Kitzman wrote back to Ellis and said her office has shared information with authorities. She says the department received four complaints in 2009 related to State Farm’s refusal to approve roof replacements for lifted shingles. The complaints were handled and the file was closed in December 2010, writes Kitzman, who took over as commissioner in July 2011.

However, the commissioner says, “Given the severity of the accusations made by the district attorney, [the insurance department] is carefully considering its options for further regulatory action in this matter.”

Earlier this month State Farm Lloyd’s said it filed for a 20 percent average statewide homeowners’ insurance rate increase due to the volume, and the escalating cost, of claims in Texas.

The insurer says roofing costs have risen 86.4 percent since 2007.  

The new rates will go into effect Nov. 1 for new customers and Dec. 1 for existing customers. Texas is a file-and-use state.