Currently, insurance in the United States is governed by a patchwork of regulations. Some states have more cumbersome and confusing rules than others. This hampers innovation, raises insurance rates for those who behave prudently,and needlessly expands government bureaucracy. In the realms of homeowners’, automobile, and life insurance—the types of insurance that most Americans buy for themselves—the United States needs a national insurance market that leaves rate regulation to market forces. Two major options exist for creating such a market.