I think a lot of people A) don't know about the state insurance regulatory body; and B) just want the nightmare to be over as soon as possible, so calling yet another person up is more time involved.
Every time it's happened to me it's staying on hold for an outrageous amount of time then saying something along the lines of, "I'm going to review this with my lawyer" when someone gets on the phone. It's the same with any bully - the moment they know you potentially have some teeth they leave you alone to go pick on a weaker target =(
I also have zero confidence in government employees so there's that too - I would just expect my case to end up on someone's desk indefinitely to never get addressed. Everything in this country is going towards anti-citizen and anti-consumer - hard not to be really bitter about it =(