IF an insurance co. would falter, there are always (at least in the past) Ins companies willing to step in and buy the failing co. Why, because it is a ready-made supply of customers. Of course, the reasons for failure are still there and the new company will have to : cut staff, raise rates, etc., etc. Basic safeguards to the existing customers will allow for the new company to pick-up where the failed company left off.
One of the biggest problem is , as Dr Sowell was saying, differences in state regs . Why try to work in a state that seems to want Ins companies to fail.