California Rejects State Farm's 22% Rate Hike Amid LA Fire Claims

California's Insurance Commissioner Ricardo Lara has rejected State Farm's request for emergency rate increases amid significant claims from recent wildfires in Los Angeles. State Farm sought an average 22% increase for homeowners and 15% for renters, citing financial distress due to over $1 billion already paid in claims. Lara has called for more information from State Farm, including their financial stability and justification for the proposed hikes, before any approval can be granted. The company, which insures nearly 3 million policies in California, is under scrutiny as it faces challenges in the state's increasingly risky insurance market. Advocacy groups are opposing the rate hikes, arguing they could impose further financial burdens on already impacted residents. Lara's decision reflects a cautious approach to balancing the insurer's needs with the welfare of policyholders.