The insurance company says its finances are strained because of the Eaton and Palisades fires, from which it expects to pay more than $7 billion in claims.

During the hearing, State Farm told a judge that it has been slowly losing money for the past ten years, and with catastrophic wildfires becoming more common in California, State

After a three-day hearing this week, State Farm is one step closer to approval for a rate hike on its California customers.