Commissioner Lara’s questions include:

What, if anything, has changed for State Farm between June 2024 and now that necessitates emergency relief?
In the absence of non-wildfire catastrophic losses in 2022 and 2023, how does State Farm explain the significant decrease in its policyholder surplus?
What has State Farm done to prevent its surplus from further deterioration between May 2023 to present besides shed policyholders through ceased writings and nonrenewals?
Has State Farm provided adequate documentation to the Department to support the current rate increase request for each line of business?
Other than rate increases, what other plans does State Farm have to address its financial challenges? For example, would State Farm’s parent company, State Farm
Mutual Automobile Insurance Company, be willing or able to provide financial support to State Farm as it has in other similar situations?
What is State Farm doing to manage and restore its financial position given its statement that rate increases alone will not be sufficient?
How would granting an emergency rate impact State Farm’s business decisions to pause writing of new residential coverage and non-renew policies?

In a statement sent to PropertyCasualty360.com, State Farm said, “We are very disappointed the Commissioner ignored his department’s recommendation to take the critical and necessary step to approve State Farm General’s request for interim rate increases associated with our June 2024 filings.”

Special Reports /

California shoots down State Farm’s emergency rate hike request, wants answers

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