California's insurance chief rejects State Farm's 'emergency' rate hike, setting stage for a crucial industry showdown.

In a rebuke to the state’s largest insurance company, California Insurance Commissioner Ricardo Lara announced Friday he will not grant State Farm General’s request for an emergency rate hike in the wake of the Los Angeles wildfires.

California insurance regulators are demanding that State Farm answer “critical questions about its financial condition” in response to the company’s request for emergency approval of a steep rate hike for homeowners in the wake of the Los Angeles wildfires.