Do you have an example of the government bailing out an insurance company that couldn’t pay claims?

Or an insurance company that went bankrupt?

Insurance companies are already highly regulated (especially in CA). There are regulations around how much money has to be held in reserves to pay claims. There are regulations around what investments can hold reserves in.

Hell in CA, there are regulations around how premiums can actually increase and a mechanism for returning “excess premiums” back to policy holders.

In fact those regulations are one of the reasons insurers are leaving CA. They can’t increase premiums sufficiently to cover risk.

You can read all about them: https://www.insurance.ca.gov/01-consumers/130-laws-regs-hear...