Insurance Commissioner Ricardo Lara, who recently approved an emergency rate increase for the company, called the examination one of the department's most powerful tools.

California's top insurance regulator on Thursday launched an investigation into State Farm over the company's handling of claims from the January Los Angeles-area wildfires.The investigation comes after survivors of the Palisades and Eaton fires said that the state's largest home insurer was delaying and mishandling claims regarding damage to their homes and possible contamination from smoke.

California Insurance Department formally investigating State Farm over ‘significant’ number of complaints about its handling of claims from L.A. fire survivors.