Final answer:
The statement is False; insurance rates can vary significantly between companies within a state due to regulatory actions potentially leading to insurers withdrawing services or selecting customers to minimize risk.
Step-by-step explanation:
The statement that 'insurance rates for automobile policies are relatively the same among different companies operating in a state' is generally False. While insurance is a heavily regulated industry, companies do not necessarily offer the same rates. Regulatory efforts to maintain low premiums can sometimes lead to companies avoiding high-risk individuals or withdrawing from the market entirely. The principles that govern the insurance market dictate that payouts cannot exceed what is collected in premiums. When state insurance regulators enforce low premiums, it often results in insurance carriers either selecting their customers very carefully to minimize risk or choosing to cease providing policies in that state altogether, as evident in historical examples such as New Jersey where companies stopped operating due to stringent regulation, and Florida where State Farm pulled out from offering property insurance.