[Firaxus]

It’s regulated, not illegal.

“Experts say the insurance landscape in California is particularly tricky because, in addition to the wildfire risk, the state has a law that adds extra approval measures, including board approval and review by the insurance commissioner, if an insurance company wants to raise the rate of insurance by more than 7%. That’s been in effect since the 1980s.” https://www.cnbc.com/2024/02/05/what-homeowners-need-to-know...

[Analemma_]

If it's not permitted to raise the price of premiums to point where it covers the actual risk, then it's de facto illegal. Nobody will sell insurance policies at a loss.

[amarcheschi]

But that's not what it's said

[dnissley]

Illegal seems fine as shorthand though. Same with housing -- "illegal" to build in many instances. Not technically illegal of course, but enough hurdles makes it effectively so.