No action to get the state AG involved. The correct thing to do is contact the state insurance commission in writing with a CC to the insurance company.
I hope the fire loss homeowner has read the letter of her insurance policy. It’s a contract. If the insurance company is in violation of the contract then they have a big liability there. If the homeowner is expecting something not covered in the contract, expect the insurance company to follow the letter of the contract period.
The $$$ of a fire loss usually exceeds the limit of a small claims court action. If so, the only option is to get a lawyer. $$$ probably involved unless a contingency fee is an option. All communications at this point should be in writing. Period. If there is a verbal communication, it should be followed up with a letter documenting the subjects, commitments, etc.
I’m notta lawyer or insurance pro so this can be taken for what it’s worth.
What if the insurance adjuster you want to hire IS a lawyer, too?