California Gives State Farm Insurance Ultimatum

California insurance regulators are urging insurance provider State Farm to expand coverage in exchange for rate hikes after the recent wildfires.

Wildfires in Los Angeles last month burned more than 47,900 acres, destroyed more than 16,250 homes and businesses, and killed 29 people. Amid the destruction, tens of thousands of people have made insurance claims to State Farm-the state's largest home insurance provider-equating to millions of dollars. But the company has said it needs to implement rate hikes in order to pay all the claims and avoid a "dire situation."