Close, but not quite. Most states have a statute which says "rates shall not be inadequate or excessive". Pretty much all rate filings I've seen include a return on equity (ROE) in their analysis, and states review that in light of above statute.
States have pretty broad powers and I could see them forcing a disgorgement if they felt so inclined.
Source: I was a state insurance regulator for the Alaska Division of Insurance for a few years
States have pretty broad powers and I could see them forcing a disgorgement if they felt so inclined.
Source: I was a state insurance regulator for the Alaska Division of Insurance for a few years