[brogrammernot]

Yup, exactly.

Even worse for the consumer is that insurance rules say you have to “offer” insurance in the state to get your license.

Well, you don’t want to drop your license but really don’t want to have a bunch of policies. What do you do?

You make it impossibly difficult to get insurance. I’m not going to name names but a lot of insurance companies in California are doing this.

No online applications, have to call in, have to fax in or mail paperwork required and so on…

[michael1999]

That sounds like informal underwriting. If you are forbidden by law from better underwriting, then selecting by conscientiousness is a sensible proxy.

[hilux]

Yup - I have experienced this trying to buy health insurance (pre-Obamacare) in California.

I was very confused until I realized they were doing exactly what you said.