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.

The California insurance commissioner on Friday rejected State Farm's request for a temporary 22% rate hike for homeowner policies, as the company deals with claims from the Southern California wildfires.

Citing the "dire" financial situation they're facing after the Los Angeles wildfires, State Farm General has asked California officials for an emergency interim rate increase. The rate hike could work out to an average increase of 22% for California homeowners, State Farm General revealed Monday.