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Thats my concern. Why not just pull out of a neighborhood/region then?

That's exactly what happens, once the cost of providing service becomes higher than the expected revenue.

Now there is some pressure the state/city can provide (you can't serve ANYONE in LA until you serve EVERYONE at the same price points) but at some point the whole thing is unprofitable and the companies disappear.

Literally just happened with home insurance.

I can't speak specifically but a lot of times, part of their charter is that they need to provide service across all areas in order to get the permission to provide any service.

Yes definitely and while I don't think it would cause enough drag for them to pull out of a whole metro, we are seeing similar things at the state level with insurance companies due to the increase limitations imposed.

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