California Insurance Commissioner John Garamendi announced a $1 million fine late Monday against Farmers Insurance Group, citing delays in the settlement of consumer claims by the Los Angeles-based insurer.

Farmers agreed to the settlement in connection with the department’s finding that there were 1,000 violations of the state’s insurance code in the company’s handling of 350 claims between Jan. 2, 2002 and Aug. 8, 2004, according to a department release.

Most of the complaints involve claims handling delays, as well as failures to commence investigation of a claim within 15 days, properly notify policyholders of the need for additional investigation time, pay a claim within 30 days after liability was accepted and respond to the insurance department in a timely manner. The settlement includes an additional $125,000 to be paid if Farmers does not improve its practices.

“This fine should send a message to all companies that this department will not tolerate mistreatment of policyholders,” Garamendi said in a statement. The department regularly assesses fines against insurers for such violations, according to a department spokesman, and the Farmers’ fine is a typical amount.

Farmers spokeswoman Mary Flynn said the violations involved “issues of administrative and reporting matters and nothing to do with not paying claims or underpaying claims.”

A subsidiary of Swiss-based Zurich Financial Services, Farmers group consists of Farmers Insurance Exchange, Fire Insurance Exchange, and Mid-Century Insurance Company, and Truck Insurance Exchange.

The department did not specify the types of claims Farmers mishandled, but the company has significant market share in the homeowners, consumer automotive and other market segments.