San Bernardino, CA – The San Bernardino County Board of Supervisors is urging state officials to declare a statewide state of emergency as insurance companies continue to scale back their operations in California.

On June 25, the Board unanimously adopted a resolution requesting California Insurance Commissioner Ricardo Lara, Governor Gavin Newsom, and the State Legislature to take immediate action to stabilize and strengthen the state’s insurance market, according to the San Bernardino Sun.

If a state of emergency is declared, it would prevent insurance providers from canceling existing homeowners’ policies.

This resolution follows recent announcements from major insurers, including State Farm and Allstate, to limit their business activities in California. Last year, State Farm announced it would no longer accept new insurance applications for both business and personal property in the state. Most recently, State Farm General, the company’s California subsidiary, requested the California Department of Insurance to approve rate increases for homeowners, condo owners, and renters.

In addition to State Farm, other insurance companies such as Allstate and Farmers Insurance have also revealed plans to reduce their presence in the state.

The dwindling number of insurance providers has forced many new and existing homeowners to seek coverage through California’s FAIR Plan. This plan, which offers basic hazard coverage, is considered a “temporary safety net” and was never intended to replace the comprehensive coverage provided by private insurance companies.