CA Approves 17% “Pay Raise” For Insurance Company After LA Fires

Insurance Commissioner Ricardo Lara adopted a judge’s ruling to grant State Farm a 17% “emergency” rate increase.

I guess the millionaires that run State Farm are having a hard time. Poor fellas.

Judge Karl Frederic Seligman recommended the hike while considering a larger request from last year.

Lara said State Farm must now justify its financial woes and outline a recovery plan in a full hearing.

And all this after the massive fires in L.A. where State Farm curiously cancelled 69% of the policies in Palisades before it went up in smoke.

California is allowing State Farm to charge an extra 17% for homeowners’ insurance after already approving a 20% hike last year…. the Liberals are driving working people out of the state. pic.twitter.com/gIkgKaHtHt

— Satguy 141 (@satguy01) May 14, 2025

LA Times reports:

Insurance Commissioner Ricardo Lara adopted an administrative law judge’s ruling Tuesday and granted State Farm General an emergency 17% hike in its homeowner rates.

The commissioner’s decision followed the release earlier in the day of a ruling by Judge Karl Frederic Seligman, who recommended that Lara adopt the rate increase pending the department’s consideration of a larger rate request the insurer sought last year due to its weak financial condition.

“I expect State Farm to provide the highest level of service to its California customers and to fulfill its promises,” Lara said in a statement. “State Farm must now justify its financial condition and detail its recovery plan in a full rate hearing before a neutral judge and my department’s experts.”

The decision also would give State Farm interim rate hikes of 15% for its condo and renters insurance and 38% for its landlord rental-dwelling insurance. State Farm originally sought a 22% emergency rate hike for its homeowners coverage, but later reduced the request to 17%.

In making the ruling, the judge said that California’s largest home insurer was already in a weakened financial state at the time of the Los Angeles wildfires — and that the emergency rate hike would carry it over until the state considers the prior rate request. Last year, State Farm sought premium increases of 30% for homeowners, 42% for renters and condo owners and 38% for landlords of rental dwellings.

“The proposed interim rate stipulation serves the best interests of California consumers and the public. Taken as a whole, it represents a fundamentally fair, adequate and necessary measure — effectively functioning as a rescue mission to stabilize State Farm’s financial condition while safeguarding policyholders,” Seligman wrote in his ruling released Tuesday.

Shocking, not shocking, California insurance commissioner Ricardo Lara approved an insurance rate hike of up to 38% for State Farm customers. pic.twitter.com/EkGZ15vudh

— Kevin Dalton (@TheKevinDalton) May 14, 2025

Cancel those policies. Now they want a raise.

State Farm canceled 69% of its homeowner policies after brush removal was suspended in Palisades, leaving the area a hazard for wildfires. What were they thinking? Another land grab? pic.twitter.com/YuwbZ73raM

— 🇺🇸Steve2A🇺🇸God🇺🇸Family🇺🇸Country🇺🇸 (@lakemonstercl1) January 11, 2025

The same State Farm that was busted by O’Keefe.

OMG's investigation into State Farm’s rate manipulation has been making headlines nationwide, with mainstream and local media picking up our story.

"If something happens, we'll go to the Department of Insurance… and if they don’t let us raise rates, we'll just cancel… pic.twitter.com/3pSTJrlEK1

— O’Keefe Media Group (@OKeefeMedia) March 18, 2025

It seems trouble with State Farm isn’t only with those affected by the fires.

Sharing the Wall Family story, or, should I say “nightmare” with State Farm Insurance. @StateFarm

Why do we pay insurance only to have these insurance companies like State Farm abuse us when we file a claim? We need more oversight on what is going on with these insurance… pic.twitter.com/LXSDvTCGlz

— 👉M-Û-R-Č-H👈 (@TheEXECUTlONER_) May 12, 2025

Thoughts?