The state of California has put in place a requirement that most new auto insurance policies be backed by a state-issued policy that pays for medical and/or dental expenses.
That means those policies will no longer be able to claim state tax credits, which have become increasingly scarce in California.
The move comes as states like New York, Rhode Island, and Massachusetts are putting in place requirements that all policies must be insured by a national insurance exchange.
The change has been welcomed by some, but it comes amid a tightening of the insurance market and a new administration under President Donald Trump that has said it wants to keep insurers from moving to the individual market.
But some critics worry that this is just the start of a wave of consolidation in the insurance industry.