Posted On: March 31, 2008, 9:31 am CDT

Posted By: Big Dog

While I generally agree with both comments, states oft times have done a less than adequate job at overseeing the insurance industry.

A good example is California and the W/C debacle they helped create in 2000-2003. Had they done their job and regularly evaluated carriers for rate adequacy, companies like Superior National and Fremont Comp would still be around.

At the same time, I believe states should have been closely monitoring the lending practices of mortgage companies.

Don't get me wrong - I'm not putting full blame on the states. Put blame where it's due - lenders that made poor underwriting choices, or offered crap loans, to the homeowner that lied on their application.

I think history has shown that industries don't do a good job at policing themselves - greed tends to set in.