I would have no problem with states doing this collectively with no Federal involvement, but that is never going to happen anytime soon. Insurance is very expensive in some states, and in those states that is often a GOOD thing because the insurance companies must meet very stringent legal requirements that help ensure that they are solvent even if many claims are filed. New York is a good example of this. There’s no way the insurance commission in New York would ever reduce their regulatory requirements just to make sure NY-based companies could compete in a place like Mississippi.
Point taken, but I was wondering about other states that are not so strict. It would seem to me to be a free-for-all, with companies competing in states like Mississippi, while ignoring NY state. At some point something would have to give - like those NY-based companies going to another state.