State Farm argues it needs additional funds to boost capital and avert an increasingly dire financial situation following the devastating Los Angeles wildfires.

In a hearing on Tuesday, State Farm went before the California Department of Insurance to explain with data why the $921 million premium increase is necessary, FOX 11 reported. STATE FARM EXECUTIVE FIRED OVER COMMENTS ON PREMIUM HIKES AFTER CALIFORNIA WILDFIRE

At an Oakland hearing Tuesday, attorneys for State Farm Insurance made their case for an emergency rate hike that could impact insurance rates for millions of Californians.State Farm -- the state's largest insurer -- is asking California's Department of Insurance  for a 17% emergency rate hike.

But before giving his final sign-off, Lara ordered State Farm representatives to appear before an administrative judge to justify the company’s request — a rare move for a rate hike proposal. That multi-day public hearing starts Tuesday in Oakland and could last through Thursday.

Day two of a first of its kind emergency hearing in Northern California to determine if State Farm will get the rate increased it says it needs to stay afloat in California, On Your Side's Kristine Lazar gives details on the hearing with Consumer Watchdog's founder Harvey Rosenfield.

The insurance company State Farm and the California Department of Insurance argue that the rate increase will shore-up the company's financials, saving millions of Californians' policies.