California’s Insurance Department has launched a formal investigation into State Farm over its handling of claims from the Los Angeles County fires.

California's top insurance regulator is launching a probe into State Farm over its handling of claims from Los Angeles-area wildfires that broke out in January. The investigation comes after survivors of the Palisades and Eaton fires said the insurance company delayed or mishandled claims. California's insurance commissioner says the investigation will review whether the company complied with state consumer protection and claim-handling laws. State lawmakers have said State Farm customers are facing emotional and financial hardships because of delays in claims and denials.

California's top insurance regulator says he will approve an emergency request from State Farm to raise home insurance rates for roughly a million customers if the company can justify the hike at a public hearing. The company said it needs to quickly rebuild its capital to prevent a "dire" financial situation after the Los Angeles wildfires destroyed thousands of homes. State Farm is California's largest insurer. The company wants to increase premiums on homeowners by 22%. State Insurance Commissioner Ricardo Lara's office said Friday he will make the final decision in April. Consumer advocates say Lara's decision to call for a public hearing is a win for consumers.

California Insurance Commissioner Ricardo Lara on Friday rejected State Farm’s request for “emergency” rate increases, setting up what could b…