Final answer:
Insurers in Florida are subject to state laws that often aim to keep premiums low, which can result in insurers withdrawing from the market, such as when State Farm pulled out of the Florida property insurance market in 2009.
Step-by-step explanation:
An insurer formed under the laws of Florida must navigate a regulatory environment that aims to balance low insurance premiums with the necessity to provide coverage for its residents. State insurance regulations can compel insurers to provide coverage at rates that may not always reflect the associated risks, leading to some insurers choosing to withdraw from the market rather than operate under conditions that could undermine their financial viability. This tension was exemplified when State Farm withdrew from selling property insurance in Florida in 2009, highlighting the difficult balance states must achieve between consumer protection and creating a sustainable insurance market.