2 ms·

I imagine this won't apply if the insurer just leaves the state.

• PaulDavisThe1st 2y ago
  Yep. These are terms to operate as an insurance company in the state. If you don't want to do that, the rules have no bearing on you.
  • qeternity 2y ago
    Which effectively means that anybody in a less risky area of California is just subsidizing those who live in the risky areas. Premia across the board will increase as a result. Typical California redistribution...but this is from the bottom to the top.
    • PaulDavisThe1st 2y ago
      > Which effectively means that anybody in a less risky area of California is just subsidizing those who live in the risky areas. Do you not understand that this is precisely how insurance works?
      • qeternity 2y ago
        No. That’s not subsidization. Of course insurance is about pooling risk. But subsidizing implies you’re doing it below market rates. If I pay my market rate but still -EV insurance premium, I’m not subsidizing anyone. I’m just happy to pay for the convexity insurance provided. If I have to pay 20% more than I otherwise would, because the insurance company can’t charge someone else 20% more, that is actual subsidization. A subsidy distorts natural market forces. This is what I am talking about. Don’t be so quick to be a dick.