The analogy to car insurance is easy to answer, Med. Here in California, if you are pulled over for a traffic violation and its discovered that you don't have auto insurance, the DMV will confiscate your licence and you will pay a hefty fine. For those who cannot afford the going rate, or for thoses who are greater risks, the insurance companies MUST insure under the "Assigned Risk" program. A minimum amount of insurance is all that the State requires. I believe it to be $15,000 in liability insurance. The same is true for homeowner's insurance in high fire danger areas. Insurance is available under the "Fair Plan."
Has there been any articles about insurance companies NOT paying insured customers who lost their homes to Katrina? Did they have flood insurance? Was flood insurance even available in an area that's below sea level?
Vi