[0zemp2c]

the State does in fact provide a reinsurance scheme of sorts - disaster designations and the release of funds...the Federal government provides a reinsurance scheme under that when they designate Federal disasters and release funds

not sure the State is equipped to take over the first level of insurance...go to the DMV some time and ask if that is who you want to deal with when you have roof damage from hail etc

[nilsbunger]

They don't bail out the insurance companies though, so those companies have no incentive to play ball in CA if it's unprofitable or risky to them.