State Farm Rate Hike Scrutiny in California

State Farm is facing scrutiny over its request for a significant rate hike in California, including increases of up to 38% for rental dwellings and 22% for homeowners. The hearing, which could last several days, involves an administrative law judge assessing whether State Farm has provided sufficient data to justify its rate hike, as challenged by the consumer advocacy group, Consumer Watchdog. State Farm argues that the hike is necessary to cover losses from recent wildfires and maintain financial stability. Critics question the data provided, especially given potential conflicts of interest involving State Farm's expert witness, Nancy Watkins. The California Insurance Commissioner, Ricardo Lara, who can ultimately approve the hike, has requested additional data to verify the necessity of these increases. A ruling from the judge is expected within 10 days following the hearing's conclusion.