California's top insurance regulator, Ricardo Lara, may approve a 22% premium increase for State Farm home insurance policies to aid recovery from losses due to wildfires. State Farm, having faced significant damage from the Los Angeles wildfires, argues that the increase is necessary to avoid a financial crisis that could drive homeowners to seek state-backed insurance. Lara has requested more data on State Farm's financial management and called for a public hearing where the company must justify this emergency request, providing transparency to customers and regulators alike.
"State Farm claims it is committed to its California customers and aims to restore financial stability. I expect both State Farm and its parent company to meet their responsibilities and not shift the burden entirely onto their customers."
"The facts will be revealed in an open, transparent hearing. State Farm has said it would halt cancelling and not renewing policies for at least one year if it gets the rate increase approval."
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