Insurance rate regulation in the Unites
States had its origins in the twin concerns of excessive monopoly pricing on
the one hand and potential insolvency from inadequate pricing and capital
commitment on the other hand. Under the state-by-state regulatory scheme in the
United States,
rate regulation evolved to address local concerns such as price levels for
high-risk insurance consumers, risk classifications (and price differentials)
based upon socially unacceptable or controversial characteristics of insurance
consumers, and mandatory levels of coverage. That evolution has led to a
patchwork of state-specific laws and regulations with varying levels of
stringency and enforcement.