Insurance contracts are financial services and thus regulated at the state level and can be quite different from state to state. That is why insurance companies create a different company for each state.
Some do for states like New York but generally they get their policies set up through their domiciled state & then addendum them to meet state specific requirements. If the state is very liberal & have lots of requirements like California, you’re going to pay more. I worked for an insurance company that stopped writing policies in states that refused to allow any questions around AIDS. Guess what, if you’re dying of AIDs, cancer etc., its not real profitable for them.
Agreed, but not 100% agreement. To FReeper Dilbert's question, for the most part, yes, insurance companies try to break even across a state region instead of being willing to take a loss on a few states as long as they profit across the nation. They may take a few statewide losses for a brief period of time, but only briefly. Thus, I agree with at least that part of FReeper bankwalker. Also that insurance is regulated at the state level.
But that may not be the main reason insurance companies create a different company for each state. Some states flat out ban "out of state" insurance companies. Thus, the national companies are forced to make a separate state company.
And sometimes the regulations or court judgements make it too expensive for the insurance company to stay in the state. After Hurricane Katrina, a court ruling in Louisiana made some insurance companies liable for flood coverage even when the insurance policies explicitly excluded flood coverage. So some insurance companies disappeared from Louisiana quicker than LSU's victories over Bama disappeared after Saban went to Tuscaloosa. I don't know how many left or if any of them later started offering coverage again in Louisiana.
Insurance contracts are financial services and thus regulated at the state level and can be quite different from state to state. ...
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Problems arise when leftist states like California regulate insurance for wealth redistribution and cross-subsidization of risk prone areas, rather to promote honesty and ample risk reserves. Insurance companies should abandon the state while they still can.