Doesn't that type of behavior sound like it's anticompetitive, or maybe in violation of an antitrust act? Well, just about every industry, it is. Except one: The insurance industry. The McCarran-Ferguson act of 1945 grants insurance companies the right to engage in all the anticompetive behavior I named above.
There was a bill presented in the 107th session of Congress that would eliminate the antitrust exemptions. Hell, the official purpose of the bill is "To modify the antitrust exemption applicable to the business of insurance. " The first paragraph of this post is ripped directly from the bill, with the word insurance replaced with product. Everything named above is perfectly legal for the insurance cartel.
How about a little less tort reform and a little more insurance reform?