Mr. Shapo, who is now an attorney in the Chicago office of Sonnenschein, Nash & Rosenthal, cited Illinois' free market rating system, which does not empower the insurance commissioner to review and challenge prices for auto and homeowners insurance, as a model for the rest of the nation. The Illinois model, he said, produces abundant supply and empowers consumers to effectively shop for the coverage they need at prices they can afford.

Ernst Csiszar, the insurance director for South Carolina, added that the experience in his state reflects this as well. He noted that in March of 1999, a competitive rating law took effect in South Carolina. In a little over four years, the new law has produced many marketplace changes, Mr. Csiszar said.

For example, he said, the number of insurers in the South Carolina market increased from 78 in 1996 to 165 as of about one month ago. The state's residual market decreased from over 600,000 policies in 1999 to about 340, he added.

Moreover, he said, no insurance company has more than 25 percent of the market. Finally, he said, South Carolina's ranking according to the National Association of Insurance Commissioners' Average Premium Expenditures Report has improved.

"South Carolina and Illinois are good examples of how competitive rating models, when accompanied by appropriate regulatory oversight and market monitoring, work efficiently," Mr. Csiszar said.

Rep. Richard Baker, R-La., who chairs the Financial Services Committee's Subcommittee on Capital Markets and Insurance, said that the regulatory system in a given state affects the availability and affordability of insurance.

"There is a literal maze of regulatory structures out there, and we want to find out which ones actually give consumers the most choices and help make it easier for them to find the best product, with the best service, at the best possible price," Rep. Baker said.

Rep. Mike Oxley, R-Ohio, who chairs the full Financial Services Committee, agreed. "When wrong-headed regulation drives out competition and leaves consumers unprotected, it is time to examine whether the means is achieving an appropriate end," he said.

The Financial Services Committee is expected to hold a series of hearings this year on different aspects of insurance regulation, but it is unclear whether it will take a regulatory reform initiative.