Of course, my question is how much we paid for it.
Philip Greenspun wrote a post about that sometime back.
http://blogs.law.harvard.edu/philg/2012/09/15/californias-st...
That's like saying medallion cabs have too much control on taxi service, therefore we should not remove restrictions which keep Uber and other competitors out of the market.
Since not every state insurance commissioner is captured by the insurance industry, this is a big problem for them so they're heavily lobbying the feds to create a situation where insurance policies are regulated by the state the company is based out of.
This will let them set up an operation like corporate governance and consumer lending have, where one of the most corrupt states like Delaware sets up rules that let insurance companies do whatever they want.