An administrative law judge endorsed a request by State Farm General to increase its homeowner rates by 17%, at least partially due to losses it suffered in the Jan. 7 fires in Los Angeles County.

Administrative Law Judge Karl Frederic Seligman, who oversaw an unusual three-day hearing on the matter last month, said that California's largest insurer was already in a weakened financial state at the time of the fires and that the emergency rate hike would carry it over as the state considers other rate hikes requested last year.

"The proposed interim rate stipulation serves the best interests of California consumers and the public. Taken as a whole, it represents a fundamentally fair, adequate and necessary measure — effectively functioning as a rescue mission to stabilize State Farm's financial condition while safeguarding policyholders," he wrote in a decision released Tuesday.

The decision also would give State Farm interim rate hikes of 15% for its condo and renters insurance and 38% for its landlord rental-dwelling insurance.

But the ruling only serves as a recommendation to California Insurance Commissioner Ricardo Lara, who has the final authority on the matter.

He can revise, reject or accept the judge's decision, which also could be sent back for reconsideration.

A decision to approve any rate hike would be controversial amid unhappiness among many Palisades and Eaton fire victims over how State Farm has handled claims for properties that were damaged or destroyed.

State Farm originally sought a 22% emergency rate hike for its homeowners coverage, but later reduced the request to 17%.

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