Your posting history on this thread indicates otherwise. At least on this issue you're speaking like a true lib.
If you think that government NEVER should get involved in regulating businesses, you probably support monopolies and robber barons. The government regulates businesses all the time. Insurance companies should not be exempt simply because they are insurance companies.
Please. No right thinking person could believe what you're proposing is legitimate regulation. Similar to an example given above, suppose the federal government told Fidelity that it must invest its mutual fund dollars equally in all stocks, or discontinue its entire business. Would that be appropriate?
New Jersey has serious problems with its insurance industry. It has had them for some time.
These problems are peculiar to trhe social structure of New Jersey which has more attorneys per capita than any other state in the Union.
Limiting "pain and suffering" suits would improve things.
But as I pointed out, the biggest customers of Trenton's legislative harlots are the insurance companies, the Trial COurt Attorneys, the New Jersey Education Association, the COnstruction Unions and last but certainly not least, the police unions.
Any efforts by the state to make things more bearable for its citizens by regulating abusive insurance practises is welcome there. After all, the insurnace lobbies have benefitted by government legislation which benefits them like mandatory automobile insurnace, mandatory use of seat belts, humiliating "random road checks" of law abiding citizens to make sure they are wearing seat belts and have not been drinling.
So its rather hypocritical of them to complain when the government seeks to control them too.
I have friends in Miami who are talking about buying off their home loans so they won't have to pay the skyrocketing insurance rates.
What I've done is to insure for far less than the replacement value of the home, and get the highest deductible possible. In my view, the house is not likely to be totaled anyway, althought that does happen.
Meanwhile, I absolutely agree that it is not government's place to regulate prices, or to tell people what they can sell to whom and where. All that smacks of central planning and socialism.
Regulation does have a place in government, but IMO mainly in the enforcement of contracts and honest business practices.