California's largest insurer has given the state's government an ultimatum as the cost of providing cover continues to soar.
State Farm on Thursday told California's Department of Insurance to let them raise home insurance rates for millions of citizens, or they will ax cover.
The move by the insurance giant comes amid a growing insurance crisis in California.
A slew of insurers - including Allstate, Farmers Direct and State Farm in a previous move - have limited cover or stopped doing business entirely in the Golden State.
They blame the intensifying risk of climate disasters.
As a result, more than half of all Californians say they have been affected by rising property or have been dropped by their insurer in the last year. With so few firms offering cover, they cannot simply move to a new provider.