CALIFORNIA (FOX26) — California Insurance Commissioner Ricardo Lara announced on Friday, he would approve State Farm’s emergency request to raise home insurance rates on one condition.

He says the insurance giant will need to show data to prove there is a need for an increase in a public meeting.

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It is scheduled for April 8th.

Following that, a decision will be made.

CA Insurance Commissioner demands State Farm justify rate hike request in public meeting.

If the condition is met, the emergency rate would increase premiums for homeowners by 22%, 15% for tenants, and 38% for rental owners.

FOX26 News has reported before on State Farm saying it needed an increase to prevent quote, “a dire situation.”

According to Soller, a private meeting was held this week by Lara, State Farm executives and Consumer Watchdog lawyers.

Soller said, “They want to increase their rates. They say that they’re having financial distress. We’re going to hold this hearing to get to the bottom of it and ultimately, if they show that they’re financial destruction. Commissioner Lara is prepared to approve this rate hearing.”

Executive Director Carmen Balber with Consumer Watchdog applauds Lara for calling on a public hearing and for requesting that State Farm justifies its request to ask consumers for more money.

“That’s something that State Farm has so far refused to do. They wanted consumers to pay now and ask questions later. The commissioner said no, we’re not going do that,” she said.

Commissioner Lara is really asking some tough questions and he’s expecting some real answers here from State Farm. – Michael Soller, California Insurance Deputy Comissioner

Answer to questions, he says he is looking for in terms of where the company is standing financially.

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Soller said, “What happens if another wildfire were to break out in the coming months? What does the data show about the impacts of the recent LA wildfires?”

Plus, he says what rates do they need to be able to keep paying their future claims?

“They have to come to the Department of Insurance. They have to show us the complete data and we have to go through that to make sure that we agree,” said Soller.

Both Balber and Soller say that State Farm is the only insurance giant asking for these increases.

Both said, none of the others have done that and that they find it unusual.

If Lara approves the emergency request by State Farm, it’s expected to go into effect June 1st.

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