They don’t just stay in certain states. There is a holding company that owns subsidiaries and those subs operate in individual states.
Now, if you want to open up the discussion to free enterprise, you may want to consider how it is that some of the most heavily regulated industries in the country are among the largest PAC donors in any given election cycle, while some of the least regulated industries in the country give similar or larger amounts. (Hint: Depending on the business, more regulation is better for ‘keeping out the riff-raff’.)
If you think the corporatism we are living under now is “free-enterprise”, I’ve got a beautiful bridge to sell you. Or some prime lake front real estate in south central Florida...
They do just stay in certain states.
Sorry you didn’t know that.
X company can not take X policy from California to Missouri and market it there.
Further, states regulate who can and can’t operate in the state as it relates to insurance.
It is not an open free enterprise system.